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New study shows good open source momentum



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December 20, 2005 10:21 am

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A new study by Optaros Inc, a consulting and systems integration firm, provides solid data on the momentum behind open source. You can see a copy of the study, published Dec. 19 under a Creative Commons license, here.A few of the keys points:

  • 87% of the 512 companies surveyed are using open source software. All of the 156 companies with at least $50 million in annual revenue were using open source.
  • Companies and government institutions use open source for three primary reasons: to reduce IT costs, deliver systems faster, and make systems more secure.
  • In 2004, open source software saved large companies (with annual revenue of over $1 billion) an average of $3.3 million. Medium-sized companies (between $50 million and $1 billion in annual revenue) saved an average $1.1 million.
  • More and more companies are using open source software for business applications.
  • Once organizations start using open source software, their usage increases.

According to the study, the four most significant barriers to adoption remain:

  • executives lacking knowledge about the benefits of open source and harboring fears about quality and support;
  • legal and licensing issues;
  • corporate cost allocation policies that dont provide incentives to business functions to reduce the cost of commercial software;
  • the difficulty of procuring open source systems that will be supported after installation.

The community, including Novell, is actively working to eliminate these remaining concerns around open source.

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