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Investment in Open Source software set to rise - Accenture

05 August 2010 , Written by Dhruv Tanwar
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The open source software market has reached a turning point, with organizations in the United States, United Kingdom and Ireland now committing to clear strategies and policies for open source software development, says research from consulting, technology and outsourcing firm Accenture.

open_sourceIn survey findings released today, Accenture said over two-thirds of organizations (69 percent) anticipate increased investment in 2010, with more than a third (38 percent) expecting to migrate mission-critical software to open source in the next twelve months.

Accenture's survey of 300 large organizations in both the private and public sector found that half the respondents are fully committed to open source in their business while almost a third (28 percent) say they are experimenting with open source and keeping an open mind to using it.  Moreover, 65 percent of respondents noted that they have a fully documented strategic approach for using open source in their business, while another 32 percent are developing a strategic plan. Of the organizations using open source, 88 percent will increase their investment in the software in 2010 compared to 2009.

“What we are seeing is the coming of age of open source,” said Paul Daugherty, chief technology architect, Accenture. “Through both our research and our work with clients, we are seeing an increase in demand for open source based on quality, reliability and speed, not just cost savings. This is a significant change from just two years ago when uptake was driven mainly by cost savings. We can expect to see this trend develop as open source continues to evolve and address even more business critical functions.”

Quality and improved reliability cited as key benefits
When it comes to the benefits of open source, the cost was no longer viewed as the key benefit, with respondents focusing instead on other aspects:

  • 76 percent of respondents in the UK and US cited quality as a key benefit of open source
  • Two-thirds overall (71 percent) cited improved reliability
  • Better security/bug fixing was cited by nearly as many (70 percent) across both countries.

Cost management with open source
Although cost savings are not the primary driver for open source adoption, half of the respondents do cite open source as contributing to an overall lower total cost of ownership. When asked about the greatest cost savings in open source, 71 percent of organizations surveyed believe they can be made on software maintenance costs, 33 percent believed it to be on initial software development time and 33 percent thought savings come in the initial development costs.

Open source software development on the rise but companies still not so open to sharing
The volume of open source software development is set to rise over the next three years, says Accenture. In 2009, 20 percent of software developments were in open source. Accenture expects these to rise marginally to 23 percent in 2010 and to 27 percent by 2013.  Notably, 29 percent of the organizations surveyed are willing to contribute their own solutions back to the community.

Lack of senior management support, training and insufficient open source alternatives hindering further adoption
Despite a very encouraging picture, some organizations still remain hesitant, said Accenture.  The biggest challenge as mentioned by 35 percent of all companies, is still around training developers how to use open source. Furthermore, lack of senior management support appears to be a key reason given for not using open source software among organizations that have looked at it but ultimately chosen not to use it. Those yet to make the transition to open source also cite insufficient open source alternatives compared to proprietary software suites that would enable them to use open source confidently across their business.

“We are seeing strong momentum and commitment to move further along with open source. The current wave of companies adopting open source are experiencing strong benefits, however there are still organizations hesitant about the shared community model. As open source software is used in more critical business functions the next step will be for organizations to decide whether to actively contribute back to the community,” said Daugherty.
 

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