View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
April 5, 2005

Enterprise software model “broken” says open source advocate

Open source champion Larry Augustin has pointed start-ups towards opportunities in the lucrative small and medium business (SMB) market, saying the system of delivering enterprise software is "broken".

By CBR Staff Writer

Speaking at the Open Source Business Conference (OSBC) yesterday, Augustin advised open source ISVs to target specific SMB markets, such as healthcare and customer relationship management (CRM).

Augustin, director for a number of open source companies and chief executive for healthcare software start-up Medsphere Systems, believes these sectors are ripe, because large enterprise ISVs have struggled to move down market.

He noted traditional ISVs are bound by costs associated with sales, marketing and development to effectively price their products and win business.

Quoting Wall Street analyst Goldman Sachs, 76% of new license revenue is channeled directly into expensive sales and marketing. We are charging customers convince them they need out software, Augustin said. The enterprise software model is broken.

He said open source ISVs have the advantage that because they effectively use the community to help build and test products there is little need for expensive pilot programs.

The existence of the community further assists open source ISVs because they have access to a potential customer base that are already familiar with the product, a factor that reduces both ISVs’ sales cycles and time taken to install the product.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.