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Open-Source Chief Executives Make 2008 Predictions

Open Solutions Alliance finds that changes in the economy will open the door for new deployments of open source in business

SAN FRANCISCO, Jan. 7 /PRNewswire/ -- The Open Solutions Alliance (OSA), a nonprofit, vendor-neutral consortium dedicated to driving interoperability and adoption of comprehensive open solutions, today announced the findings of its 2008 Predictions Survey, which polled open-source CEOs on their forecasts for the coming year.

"Our member CEOs have given us important insights into what they expect for the coming new year," said OSA President Dominic Sartorio. "The OSA is home to some of today's most successful commercial open source companies, which allows us to spot trends and their impact early."

The OSA survey revealed that CEOs agree that commercial open source will become more mainstream and continue to be a worldwide growth story in 2008. Moreover, growing economic uncertainties could further expand the opportunity for open source in the enterprise.

"Demand for Linux and open-source applications, infrastructure and services will increase substantially in 2008, driven partially by an economic slowdown in the United States," predicted Doug Levin, CEO of Black Duck Software, an open-source code management company. "These open-source solutions will be active in more corporations and SMBs in 2008 than ever before."

"During '08, the pressures CIOs will face to drive greater business innovation with a fixed (or low growth) IT budget will conspire to challenge every possible traditional software license," said Brian Gentile, CEO of JasperSoft, an open-source business intelligence application. "Open-source software can be a significant catalyst in liberating more of this maintenance budget, freeing it for use in driving new business and improved profitability."

Michael Grove, CEO of OpenIT Works, an open-source CIO collaboration group, pointed out that the collaborative nature of open source makes it cost-effective for development. "Our challenge is to demonstrate that collabsourcing (collaborative outsourcing) will generate two to three times the savings that typical outsourcing approaches provide."

Other key predictions from OSA member company CEOs for 2008 include: * A confluence of open-source and software-as-a-service (SaaS) models.

"These are the two most powerful trends in software today, and while they've traditionally been seen as separate, parallel developments, they are rapidly combining to create the new business model for enterprise software," said William A. Soward, CEO of Adaptive Planning, an open-source budgeting, forecasting and reporting software company.

* No one region will lead the charge in terms of adoptions of open-source software, but each will have its area of strength.

"There are certain markets that have always been historically more embracing of the notion of open source, such as public sector bodies in Europe, compared to the U.S. where open source is more prolific in private organizations," said David Richards, CEO of Concursive Corp., an open-source customer relationship management company. "But implementation in Asia will be much more rapid than in the U.S."

* A shake-out among open-source business models.

"We've seen a lot of open-source entrants into a number of categories of software," said Javier Soltero, CEO of Hyperic, an open-source systems management software company. "Most of these companies will be transitioning from 'advocacy and awareness' mode into 'make money' mode and it's in that latter phase that we'll see whose models work and whose don't."

* Consolidation.

"Watch for consolidation among open source organizations as a way to strengthen their offerings and development efforts as well as acquisitions of open source market leaders by large commercial vendors who have a desire to expand their market reach and revenue stream," said Mark Tolliver, CEO of Palamida, an open-source IP management company.

* License issues are becoming less of a factor in decision making by commercial customers.

"Customers continue to get educated about the code they use and about open source licensing in general, so FUD will have less of a factor than in the past," said Kim Polese, CEO of SpikeSource, an open-source application integration platform.

* Interoperability between open source and closed source solutions.

"As enterprise open source solutions become more prevalent and more mission critical in the information system, they will need to interoperate with all systems," says Bertrand Diard, CEO of Talend, an open-source data integration software company. "Most information systems are heterogeneous and rely on multiple technologies, open source and closed source, that all need to interoperate. This will be the main challenge faced by most open source vendors in 2008".

The full text of the CEO predictions is available on the OSA website, http://www.opensolutionsalliance.org/.

The OSA is focused this year on improving the interoperability among the point solutions developed by its member companies to better position commercial open-source solutions to compete with those from proprietary software vendors such as Microsoft and Oracle.

About the Open Solutions Alliance

The Open Solutions Alliance (OSA) is a nonprofit, vendor neutral consortium dedicated to driving the interoperability and adoption of comprehensive open solutions. Founded in 2007, it is supported by leading companies from around the world who are dedicated to improving interoperability among software products, resulting in integrated and rapidly deployable solutions for business users. Through cooperative action and advocacy, the OSA helps facilitate interoperability, reduce barriers to adoption and raise the awareness of open solutions in business. For more information, please visit http://www.opensolutionsalliance.org/.

Open Solutions Alliance

CONTACT: Christina Williams of Page One PR, +1-503-206-7775,
[email protected]

Web site: http://www.opensolutionsalliance.org/

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