A White Paper on Open Source Software for Enterprises

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Dec 8, 2013 (3 years and 4 months ago)

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A White Paper on Open Source
Software for Enterprises
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© CIGNEX Datamatics
CIGNEX Datamatics, Inc.
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Suite 490, Santa Clara
CA 95054, USA
Contents
Executive Summary...................................................................................................................02
Open Source – Definitions and Economic Model.......................................................................03
Evolution of Open Source.........................................................................................................03
Types of Open Source...............................................................................................................04
Impact on Enterprises...............................................................................................................05
Open Source Adoption Strategy.................................................................................................06
Open Source Options................................................................................................................07
Case Studies.............................................................................................................................07
Way forward.............................................................................................................................09
Conclusion...............................................................................................................................10
References...............................................................................................................................10
1
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Executive Summary
The Open Source Software (OSS) vs. Proprietary Software (PS) competitive landscape is constantly changing. This white
paper provides an overview of Open Source Software, its implications on enterprises and benefits associated with OSS
and concludes with considerations while adopting OSS.
Executive Summary
2
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Definitions and Economic Model
Evolution of Open Source
Open Source has developed into one of the transformational IT trends. The market has significantly expanded with a
growing user base and revolutionized development methodologies, business models, etc. across the globe.
Definition: The most basic definition of Open Source Software (OSS) is a program for which the source code is available.
The advent of OSS has not only resulted in lower total cost of software ownership (TCO) for users, but has also created
major changes in the economic interaction among players in the software ecosystem.
OSS refers to software that is distributed under a license that guarantees the buyer the right to read, redistribute,
modify, and use the software freely. The opposite of OSS is proprietary software, which is distributed under a license that
[1]
restricts to a much greater extent what the buyer can do with it.
The traditional, proprietary software model is currently in the midst of a paradigm shift. Open Source software, which
until recently was considered only for academia or internal projects, has become the 'change agent'. Enterprise-ready
Commercial Open Source products are changing the way enterprises are adopting new solutions with low or no license
fees, implementations that take half as long, minimal maintenance fee and more importantly, ownership of source code.
Apart from better performance, reliability, scalability, security, support, clearly defined upgrade path and indemnification,
Open Source helps in reducing the lifetime cost of the solution by 50% – 70% (across hardware & infrastructure,
procurement of license, implementation phases, maintenance & support etc.) over proprietary technologies. Another
remarkable factor supporting the growing OSS adoption is the ability to integrate easily with external systems compared
to proprietary technologies. Other benefits include faster turn-around time in gathering business requirements,
adaptable to business changes, better risk mitigation, and freedom from vendor lock-in & licensing and flexibility.
Definitions and Economic Model | Evolution of Open Source
3
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Collaborative
work in 1960s led
to birth of Internet
Inception of GNU
Project & Free
Software Foundation
on East Coast to
develop a new free
OS
Birth of Linux Kernel
in Finland. Linux
Kernel with GNU
Applications covered
by GPL
Stability achieved on
Linux. Evolutions of
this include Redhat,
SUSE, Mandrake,
Debian,
Slackware,...
Evolution of Apache,
Perl, Mozilla, etc.
Public acceptance
gained by Linux &
BSD
Birth of "Commercial
Open Source" to
differentiate with Free
software(Community)
2005 -
Onwards
Widespread
Adoption
Geneva 2005:
POLICIES OF
UNITED NATIONS
SYSTEM
ORGANIZATIONS
TOWARDS THE
USE OF OPEN
SOURCE
SOFTWARE (OSS)
FOR
DEVELOPMENT
Report :
www.unjiu.org/data/repo
rts/2005/en2005_7.pdf
1960's
1970's
Early 1990’s
Mid 1990’s
Late 1990’s
2000’s
Birth of Internet
Efforts in UC,
Berkley - BSD Unix
Freed BSD Unix
from copyrighted
AT&T Licenses - roll
out of 386 BSD
Stability on
386BSD. Evolutions
include NetBSD,
FreeBSD, Open BSD
The term "Open
Source" coined.
Parameters Open Source Software (OSS) Commercial Open Source S/W (COSS)
Also Referred to as Community Edition (CE) Enterprise Edition (EE)
Cost to Customer Free License/Subscription/Support Fee based
Licensed by No license. Freeware.Software Vendor
Developed by Community Community + Product Team
Roadmap decided by Community Product Team, Customer requirements,
Community
Supported by Community Software Vendor
Characteristics Community is responsible for Software Vendor ensures
Performance, Quality & Security enterprise-class Performance, Scalability,
related features High Availability, Quality & Security
requirements
Service Levels None Clearly defined Support, Bug fixes,
Indemnification, Certifying Stacks,
Release Intervals, etc.
Miscellaneous Some Software vendors have the EE as a
superset of features available in CE
Table 1: Comparison of Open Source versus Commercial Open Source
Types of OSS
Community OSS
Commercial OSS
Community Open Source is software that a community develops and maintains. Rather than a single corporate entity
owning the software, a broad community of volunteers determines the important decisions regarding the software like
future roadmap, contributions to be accepted into the source code, as in the case of the Apache Web server
(http://httpd.apache.org/)
Commercial Open Source is software that a “for-profit” entity owns and develops. The entity maintains the copyright
and determines what is accepted into the software code base and the decisions regarding the same as in the case of
[2]
MySQL and its MySQL database ( ).

OSS propels new business models for software vendors, challenges existing ones and breaks into emerging developer
ecosystems. The community of OSS "traders" lies at the heart of any OSS success. Consequently, OSS is more likely to take
off effectively in dynamic markets, where there are already potential constituents to form a community, or where IT
professionals are looking for alternative ways to challenge proprietary software vendors.
Though slow, Open Source Software (OSS) adoption has been experiencing a very robust growth globally — with OSS
revenues expected to reach $5.8 billion this year. As per Gartner, by 2016, OSS will be included in mission-critical software
portfolios within 99% of Global 2000 enterprises (up from 75% in 2010), and 50% of leading non-IT organizations will use
OSS as a business strategy to gain competitive advantage.
www.mysql.com
Types of OSS
4
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Parameters Open Source Software (OSS) Commercial Open Source S/W (COSS)
Also Referred to as Community Edition (CE) Enterprise Edition (EE)
Cost to Customer Free License/Subscription/Support Fee based
Licensed by No license. Freeware.Software Vendor
Developed by Community Community + Product Team
Roadmap decided by Community Product Team, Customer requirements,
Community
Supported by Community Software Vendor
Characteristics Community is responsible for Software Vendor ensures
Performance, Quality & Security enterprise-class Performance, Scalability,
related features High Availability, Quality & Security
requirements
Service Levels None Clearly defined Support, Bug fixes,
Indemnification, Certifying Stacks,
Release Intervals, etc.
Miscellaneous Some Software vendors have the EE as a
superset of features available in CE
Table 1: Comparison of Open Source versus Commercial Open Source
Impact on Enterprises
Lower TCO
Total Cost of Ownership is one of the key reasons why
Disruptive Change
organizations should consider Open Source. More
importantly, Open Source solutions with a trusted
technology partner are scalable and auditable.
Every software ownership contract has two levels of
pricing.
1.Licensing cost. Paid up-front before the delivery of the
technology
2.Support/Maintenance. Annual payments that
provides customer access to upgrades, patches and
other releases by the vendor
Proprietary software generally provides a range of
pricing options depending on the number of users,
process and architecture requirements. In addition to the
license cost, organizations need to consider the total
lifetime license cost, i.e. the operating cost that includes
the expense for maintenance and support of the software
license. Failure in deployments are observed mostly due to
increasing operating expense due to new users, process
revival etc.
The lifetime cost of Open Source Software is
dramatically lower in comparison to proprietary
alternatives. Also, the elimination of licensing cost
contributes significantly to the total savings. Commercial
Open Source providers charge for support which is at
discounted rates to the services provided by proprietary
vendors.
Evaluate Commercial and Open Source Software
[3]
Options Using a Multiyear Cost Profile.
Example of a simple three-year formula for annualized
total cost of ownership (TCO).
These savings are significant and worth a close look
while contemplating a new solution. For example, a 5 year
cost for Acquia Drupal is between 2% - 11% of the typical
[4]
cost of adopting its proprietary offering. A comparative
study by Alfresco signifies that in the first year alone
Alfresco saves up to 96% in costs compared to other major
[5]
players!
It is disputable whether Open Source has been a
disruptive technology, but no one can dispute that it has
created a disruptive change, for the better. Open Source
changed the rules of the game which proprietary
software vendors have been compelled to follow. For
example, ten years ago prominent proprietary software
vendors didn't offer free trials/demos.
Open Source approach has facilitated development
methodology best practices that organizations should
follow in addition to nurturing technology innovation.
The market adoption of WordPress, Drupal and Joomla
over proprietary web content management software can
be seen in a similar context.
Integration with legacy applications
One of the major drawbacks of proprietary software is
the dependency on the vendor for upgrades,
modifications and support. Vendor exercise tremendous
control over the software and organizations suffer
tremendous loss of time & cost, time & cost due to apathy
and interest from vendors.
Two benefits of selecting Open Source in such scenarios
would be
1.Open Source provides seamless integration with
legacy proprietary solution which could easily
address the existing challenges.
Mutual coexistence of Open Source and
proprietary solutions would be the scenario in the
coming years. Increasing adoption of OSS by
enterprises has incubated the need to integrate
proposed Open Source solution with legacy,
proprietary systems or existing custom-built
applications. Open Source community, vendor or
system integrators provide integration adapters
which facilitates seamless integration, thereby
ensuring achievement of the proposed OSS
benefits.
2. By migrating to Open Source, organization takes
complete ownership over the solution.
Organization no longer have to depend on vendor
for release of version's or patches. Though support
contracts in Open Source follow the same protocol
as proprietary software; free license enables an
organization to remove a company when the
service levels are unsatisfactory. There is always a
competitive pool of players in the market to
provide support, as well as organization can
leverage from Open Source community through
released patches.
Impact on Enterprises
5
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Capital Expenses + 3 x (Operational Expenses)
3
TCO =
Capital Expenses = Hardware acquisition + software license
acquisition
Operation Expenses = maintenance + power + labour + indirect
costs
Open Source Adoption Strategy
Demand for Open Source has gained considerable momentum since the economic meltdown in 2008. Organizations
now consider an Open Source adoption strategy which would minimize risk and ensure business continuity with benefits
of reduced TCO, control over software assets. CIGNEX Datamatics recommends an Open Source Adoption Model (OSAM)
based on the experience of 200+ implementations across industries since 2000.
The model outlined below provides a simple approach to introducing and expanding OSS solutions within the
organization, without disrupting the existing operations. For more details on the model and its adoption across other
enterprises, please contact .mktg@cignex.com
Open Source Adoption Strategy
6
Information
Oriented
(Non-critical)
Transactional/
Mission-critical
Expand
Open
Source
Adoption
Pilot,
Test Drive,
Migrate
Web Retail Sites
Transactional CRM
Product / CMS
Websites
Social Media
Static Websites
/ Extranet Portals
Core Banking,
Internet
Banking Mfg.
Process
Automation,...
ERP
Doc. & Rights
Management
Workflow Based
Applications
Corp. Social Network
Intranet Portals
BI
Operational
CRM
IMS(Invoice Management System)
CLMS(Contract
Lifecycle Mgmt. System)
External
Internal
Candidate
for
Immediate
Migration
Confidence
in
Open
Source
Cloud
Nature of Application
Target Audience
CIGNEX Open Source Adoption Model
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Open Source Options
Case Studies
For every available technology offering, there exists an Open Source alternative. The maturity of the OSS alternative
depends on the application platform and community base of the vendor. The table below provides a simple representation
of how OSS has gradually entered all domains sacred to proprietary vendors. Red Hat, Drupal, Liferay, Alfresco & Magento
have significant market share, while others are competing with proprietary alternatives with every release.
Grupo Posadas Reduces Website Cost of Ownership by 40%
Rise of popular internet-based travel sites and growing competition raised varied challenges on Grupo Posadas. Low
RevPAR (Revenue per Available Room), challenges in online promotion for customers and partners and lack of emotional
connection among the guests and its brands Posadas needed to build a stronger online presence for customers and drift
from the existing decentralized legacy web strategy which made it difficult to respond to evolving business practices. The
existing Proprietary Legacy Solution based websites were cumbersome to manage, lacked appropriate workflows and
made updating content a complex process. Data redundancy across multiple sites returned inaccurate search results and
drastically brought down the performance.
In order to provide a richer online experience, the company needed an integrated web strategy based on open
standards that would provide flexible and cost effective internet architecture for years to come. Posadas selected CIGNEX
Open Source Options | Case Studies
7
Proprietary Software Open Source Software
Operating System Unix, IBM, AIX, Windows Linux
Database Oracle, DB2, SQL-Server, Sybase MySQL, Ingres, PostGreSQL
Middleware,Application Server Oracle, BEA, Microsoft, IBM JBOSS, Tomcat
Dev Tools Oracle, Jbuilder, IBM, Microsoft Eclipse
Visualstudio
Infrastructure IBM, VMware, Oracle Redhat, ZenSource
EAI, SOA TIBCO, SAP, Microsoft, IBM Apache Service Mix, Mule Source
DW & BI Oracle, BQ, SAP, Cognos, IBM, MicroStr, Pentaho
MS
WCM Fatwire, Ektron, MB Drupal, Alfresco, Liferay, Plone
ECM Documentum, IBM Filenet, OpenText, Alfresco
Oracle, Microsoft
ERP & CRM Oracle, SAP, MB, IBM Compiere
Portals BEA, IBM, BV, SAP, Oracle, Vignette Liferay
Social Collaboration Jive, IBM, MB, Atlassian Drupal, Liferay
Mobile SMS MS, Wap2Go, IBM, Oracle Drupal, Liferay
BPM IBM, Oracle, SAP Intalio, JBPM
E-Commerce ATG, IBM, Click Com, Sterling Com Magento
Identity Management MS, Oracle, IBM OpenLDAP, CAS, OpenIAM
Scanner,Fax,Device Integration Kofax, eCopy, EMC, Xerox, IBM Ephesoft
Email Integration Microsoft, IBM, Lotus Notes Alfresco, Opsera
*All other trademarks are the property of their respective owners.
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Table 2: Proprietary Solutions vs Open Source Alternatives
Datamatics, a global leader in Enterprise Open Source UBMi consolidated web portal using Open Source
Solutions and Platinum Partner to both Alfresco and
Liferay, to build and implement an Integrated Content
Management Portal (ICMP) leveraging the strengths of
Alfresco enterprise content management (ECM) and
Liferay 6, an open source portal and social collaboration
solution.
Within six months, CIGNEX Datamatics successfully
implemented Phase 1 of the Alfresco and Liferay ICMP
which can now support over 2,000 content users and
750 concurrent content users within organization. With
the open, flexible architecture, CIGNEX Datamatics can
customize the company portals to fit its evolving business
needs. CIGNEX Datamatics also included robust security
in each portal with data encryption, audit/compliance
reporting and advanced access controls with secure
access to legacy systems.
UBMi had multiple website technology platforms
including Webvision, Contribute, Miramedia, Emojo, ASP
etc. across their 100+ web brands. This resulted in
shortage of resources for these technologies & associated
tools and therefore inability in accommodating changes
to web content timely. Multiple platforms contributed to
exponential increase in costs in the form of licensing,
maintenance and support model. Heavy dependency on
vendors without access to source code put UBMi in huge
business risk. They had to inherit the limitations of their
platform provider hence content sharing across channels
was restrictive, time-consuming and heavily expensive.
UBMi conducted extensive evaluation and compared
various technology platforms including Liferay, Episerver,
Sitecore, Miramedia, Squizz and ASP. Liferay 5.2 was
chosen as the preferred Portal and Web Content
CIGNEX Datamatics implemented Liferay & Alfresco
Management for developing next generation websites
implementation for eight hotel brands. The new portals
and CIGNEX Datamatics as the system integration partner.
provide a personalized experience for potential guests
During a 20 month time frame, UBMi rolled out over 70
and have been well received by online users. For the
websites across multiple business units using Liferay.
Posadas marketing and web team, it was easier to
manage and publish content in multiple languages and
Enhanced CMS functionality in segregating web
to pass through a defined publishing workflow in the
content, communities, document/image libraries, SEO
matter of minutes.
friendly pages, content tagging using RSS generators,
multiple image uploading, Flash display, FCK Editor and
Since the launch of the new portals, the company has
Filterable Google like search were some key features of
seen its revenue per room rates increase. In addition to
the solution.
improving the company's brand recognition, the new
portal is extremely cost effective. .
Through Liferay Portal and CMS Solution, UBMi
significantly reduced time to roll out new websites.
Posadas has experienced a 40% reduction in total cost
Collaboration across sharing of content, onsite
of ownership with the new Alfresco and Liferay based
management of information, ability to track changes
implementation over its previous legacy solution.
reduced time to make updates and modifications. Cost
reduction was another benefit since UBMi no longer had to
maintain the budget outlay for licenses, maintenance and
support.
Case Studies
8
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Way forward
Points to ponder over while adopting Open Source
• “Open Source is Free as in Free Speech, not as in
Define a Policy framework
[6]
Free Beer”
Policies will play a crucial role in guiding decision
• Open Source development model vary in
makers on the adoption of Open Source Software. These
comparison to traditional proprietary development
Frameworks should include guidelines pertaining to
models
i ntel l ectual property, regul ati ons governi ng
• Before selecting Open Source, CIO should
contributions to external projects, and an approved
thoroughly understand the licensing model and
vendor/project list.
should make sure if they are parallel to their
business objectives
Select the right partner
• There should be a contribution policy and how an
Open Source is a tremendous technological feat that
organization can simply give back to the
nurtures innovation. There are more than 200,000
community
Open Source Software options for an organization to
• Maintenance is not free, but heavily discounted
choose from but only the right partner helps the
organization to minimize risk and reduce adoption time
by suggesting the ideal enterprise-ready Open Source
Software. Enterprises can also save time and money by
reusing the code/features created by the partner.
The ideal partner should be able to
Educate the Enterprise on the Benefits of OSS adoption,
costs and contributions & how the pitfalls in the legacy
system can be addressed
Advise the Enterprise regarding the Partial and
Complete Adoption Practices, OSS tools, best practices,
development methodology to be adopted, etc.
Manage the transition in an efficient manner with
adherence to business objectives, quality & timelines;
integrate with existing legacy applications; ensure the
achievement of projected benefits, provide post-
implementation support.
Way forward
9
Educate
Advise
Manage
Benefits of
Open Source
Transition
Integration
Adoption
Partial
Complete
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Conclusion
References
Open Source Software has progressed very rapidly in terms of feature richness, scalability, security and quality.
Mainstream adopters of IT solutions across verticals are rapidly gaining confidence in the use of OSS, resulting in
widespread adoption.
Organizations should evaluate pros and cons before adopting Open Source and also should carefully choose
applications and partners that offer the lowest risk.
Open Source business applications are becoming an integral part of IT strategy, across the board.
Open Source offers potential to IT organizations to dramatically lower costs and improve business competitiveness.
[1] Open Source Shows Promise for Business Apps -
accessed on 25th June, 2011
[2] The Economic Motivation of Open Source Software: Stakeholder Perspectives by Dirk Riehle, SAP Research
accessed on: 25th June, 2011
[3] February 2009 “Best Practices: Improve Development Effectiveness through Strategic Adoption Of
Open Source” by Jeffrey S. Hammond
[4] TCO for Open Source Social Publishing: Going Beyond Social Business Software by Acquia Drupal
[5] Total Cost of Ownership for Enterprise Content Management by Alfresco
[6] GNU Operating System: Open Source Definition
http://www.computereconomics.com/article.cfm?id=1397
http://www.gnu.org/philosophy/free-sw.html
Conclusion | References
10
About CIGNEX Datamatics (www.cignex.com):
CIGNEX Datamatics (subsidiary of Datamatics Global Services Ltd.) is the global leader in Commercial Open
Source & SAP Connect solutions. For over 10 years, CIGNEX Datamatics has provided Open Source solutions
addressing enterprise requirements across Content Management, Portals & Social Collaboration, e-Commerce,
Document Management, Records Management, Digital Asset Management, Business Process Management, Business
Intelligence & Analytics, ERP, CRM, Enterprise Mobility and SOA. The company has expertise in applications and tools
such as Alfresco, Liferay, SAP, Magento, Sybase, Adobe, Pentaho, Compiere, Drupal, Intalio, JBoss, Mulesource, etc.
CIGNEX Datamatics focuses on addressing key challenges faced by CIOs today including:
• integrating Open Source solutions with existing line of business solutions
• managing the contradictory demands of reducing IT spend while rolling out new solutions
Over the years, CIGNEX Datamatics has helped in improving client profitability by delivering solutions to over 200
global customers using Onsite, Offsite and Offshore delivery models. Headquartered in Santa Clara, CA, CIGNEX
Datamatics has offices in Colorado, Michigan, Massachusetts, New Jersey, Texas, United Kingdom, Germany,
Switzerland, Bosnia, India, Singapore and Australia.
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