Re: Free software companies and stock options

["Kiran" <geekazoid@xxxxxxxxxxxx>]

Hey Thaths,

----- Original Message -----
From: Sudhakar Chandra <thaths@xxxxxxxxxxxx>
To: <linux-india-general@xxxxxxxxxxxxxxxxxxxxx>
Sent: Friday, September 22, 2000 1:37 AM
Subject: Re: [LIG] Free software companies and stock options


> Kiran proclaimed:
> > However, IMHO, Linux is not used by corporates in the Enterprises
(yet, )
> > because Managers/decision makers in these corporate firms are not
> > techie guys.  They are more bothered with risks that would be
> > associated with the choice of a particular solution , and to cover their
> > ass, they need the one with the lowest "risk".
>
> <snip>
>
> Kiran,
>
> This was the exact same argument that was used over here in the US about
> 3-4 years ago.  Add to this argument other "points" like 'Linux does not
> come with support', 'Who will I get in touch with if something failes' and
> 'Open software is insecure'.
>
> People like ESR launched a PR campaign (taking advantage of the press'
> thirst for a David versus Goliath story) that educated the IT managers
that
> their concerns were more of a corporate inertia thing.  IT managers
> discovered that comapnies like Linuxcare and others offered commercial
> Linux support packages that they could subscribe to.
>
> One very big thing with Open Source software is the fact that you get the
> source code for the software you use. The availability of the source code
> does not mean that you /have/ to hack the code.  It provides peace of
> mind.  A commercial software company could go out of business taking down
> its "Intellectual Property" (i.e. source code) with it.  If you invest in
> software from such a company, you are tying yourself to the future of that
> company.  With Open Source software, you can rest assured that even if the
> company that made the software disappeared, you can simply hire a couple
of
> unwashed Linux hackers to maintain the code that is vital to your company.
>
Yes but the problem with corporates (at least ones I have come across) is
that they are like these old English snobs, talking managerial jargon, they
don't understand  unwashed hackers...hell they wouldn't even understand
"hacker" and would take him for an antisocial element. Managers are a
'fraidy lot.  They Manage technology, but don't really understand it
(there're exceptions though).  If u have a commercial soln running and
something goes wrong, they would trust some jargon speaking  representative
from a big corporation for support rather than some smelly punk. Even if
the decision maker understands open source, his manager might not when
something goes wrong.  ***I am just portraying the corporate mindset guys,
that doesn't mean I subscribe to it***.  If it wasn't for these reasons,
then
why are quality free solutions not being implemented in the enterprises??
Are there many non techie firms (bank/supermarket chain/car
dealership) which use an open source database product on an open source
platform for their production systems?? ( I don't mean web servers here)


> > No sane corporate willing to stay in business would pay for the
development
> > of computer systems for its business and open source it.  Consider this,
two
> > banks start off with some capital x.  Bank A payz for its bare bones
banking
> > automation (which doesn't include internet banking/atm etc) and gets a
> > robust soln, and open sources it.  It has spent considerable capital on
the
> > development efforts not only in terms of "money" but also in time,
personnel
> > etc.  Bank B walks in, downloads the open source soln,  ( :-) thinking
of a
> > downlaodable banking solution made me lol) sets up shop in days, where
as
> > bank A spent months or years in setting up shop.  Since B has capital
left
> > to squander, due to the benevolence of A (and some proponents of
commercial
> > fsw :) ) It invests in development of Intenet banking, ATM kiosks etc
> > (closed source mindit)  to offer better services at lower service
charges
> > and costs (compared to A that is).  So which bank do u think would
> > succeed??? which would u keep ur money in??? which of the bank's stock
would
> > rise???
>
> True.  But look at it this way, if Bank B added a much needed feature to
> the code it got from Bank A, it (Bank B) has to share the modifications
> with Bank A.

But still, Bank B has its internet kiosks and atm machines which bank A
doesn't. (I wonder though if
these new modules can still access the database of the open sourced
automation system without opensourcing its own modules??).
Commercial establishments are capitalist enterprises.  Its a jungle out
there and it is the survival of the fittest.  Open sourcing their
*operations*  is a socialistic thought.  Any sane entity cannot subscribe to
two diametrically opposite ideologies of Capitalism and Socialism.

Regards
Kiran