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Open Source Software trends

and the impact of the current

economic environment

Werner Knoblich,

Vice President - General Manager EMEA,

Red Hat

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危机

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Unprecedented environment

The risk is in doing nothing. However... Unprecedented environment enables unprecedented opportunity.

Increased demand for IT-based business services

Preserve key initiatives

Protect existing and capture new revenue opportunities

Budget cuts/staff cuts

Customers contracting

Credit restructuring

Entire ecosystem strained

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“The perfect storm”

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Facts! All the latest reports from Gartner, Forrester, and IDC show that

open source adoption is continuing to grow.

Approximately 96% of respondents feel the economy's turbulence is "good" for open source software, up from 81 percent in 2008. 2)

53% of respondents are planning to increase adoption of Linux on the server and 48% are planning to increase adoption of Linux on the client as a direct result of the economic climate. 3)

The longer companies use Open Source the less important cost savings on licensing and the more important quality, open standards and

avoidance of vendor locking become 1)

Source: - 1) Heise, 02/09, Trendstudie Open Source: http://www.heise.de/open/Trendstudie-Open-Source--/artikel/126682/0- 2) North Bridge Venture Partners, Future of Open Source survey released on OSBC conf, March 26, 2009- 3) IDC White Paper, Linux Adoption in a global recession, March 2009

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Evidence of lock-in ...

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Facts! 90% of surveyed persons consider Open Source applications to

have a good or very good degree of maturity. 1).

84% of the user state that Open Source meets their expectation. 1)

Almost 80% of respondents believe that open source software will make up greater than 25% of the software purchased in their organization within 5 years value wise. 2)

Significant increase in adoptions in all areas e.g. DB, OS, BI, WCM, Web/Internet, Webserver, Systems Mgmt, Development, Security, Desktop, Virtualization, Apps Server, GroupWare, SOA, ERP/CRM 1), 2)

Significant increase in adoption in new industries like public sector

Source: - 1) Heise, 02/09, Trendstudie Open Source: http://www.heise.de/open/Trendstudie-Open-Source--/artikel/126682/0- 2) North Bridge Venture Partners, Future of Open Source survey released on OSBC conf, March 26, 2009- 3) IDC White Paper, Linux Adoption in a global recession, March 2009

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UK Open Source, Open Standards and Re–Use: Government Action Plan

Source: http://www.cabinetoffice.gov.uk/cio/transformational_government/open_source/policy.aspx

1. The Government will actively and fairly consider open source solutions alongside proprietary ones in making

procurement decisions,

4. Where there is no significant overall cost difference between open and non-open source products, open

source will be selected on the basis of its additional inherent flexibility.

5. The Government will, wherever possible, avoid becoming locked in to proprietary

software. In particular it will take exit, rebid and rebuild costs into account in

procurement decisions and will require those proposing proprietary software to specify

how exit would be achieved.

7. The Government will use open standards in its procurement specifications and require

solutions to comply with open standards. The Government will support the development of

open standards and specifications.

New Industries – Governments ...

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