The Open Source Benefits for Businesses

The open source technology originated at the “bottom of the stack” with the Linux operating system, which has become one of the most popular operating systems now. In late 1990’s the term open source was coined and the evolution of Apache, Mozilla, Perl took place, while birth of “Commercial Open Source” was seen in early 2000. The adoption started moving up the technology stack in 2005 and post 2008, Open Source adoption by enterprises was seen widely and in 2012 open source became an integral part of every enterprise IT strategy.

Analysts no longer slot Open Source Software (OSS) as unique tracks, but rather prefer to group them with proprietary software, under a specific genre. With subscription models gaining ground, consumers caring about business functions and, not the technology that delivers it, the next wave of IT sourcing predicts well for open source adoption.  The Healthcare and Government sector have led this adoption for a while but, others are catching up fast and exploring this as an avenue to reduce costs, re-train the IT workforce and also use OSS as the "cool" factor to attract/retain IT talent.

Open source software has shown remarkable traction in the past few years, with its USP moving beyond just license fees. It has provided additional business value as below:

  • Transfer control of software architecture back to you
  • Opening newer avenues for consulting, service and tech support
  • Better innovation due to strong online tech community
  • Better flexibility offered by OSS

So the cost efficiencies are still there, but they are due to the advantages OSS provides over and above license fees elimination.

According to Open Source Survey by Black Duck Software & North Bridge 2015, 78% of companies run part or all of its operations on OSS and 66 percent companies create software for customers built on open source. It shows that open source is here to stay and is now de-facto the software architecture for many emerging and established enterprises.

This year's survey results not only have some interesting statistics but also show how things have improved/enhanced in a short span of 4-5 years. Take for instance the adoption of open source in the enterprise scheme of things.

  • Today 78% of companies run on open source. More heartening than this is to see that the number was just 42% in 2010
  • 93% of the enterprises had the same or increased volume of open source usage as compared to last year
  • Currently, 64% of companies are involved in open source projects in some form or other. This number was 50% last year. The level of engagement is expected to climb to an impressive 88% in the next two to three years.
  • More than 66% says that they consider OSS model before any other approach for their new software projects.

Business is moving steadily towards providing a fully personalized and truly integrated digital experience—in user experience, analytics, cloud computing and storage, and an omni-channel experience across mobile platforms and social media. Few ways in which Open Source helps you deliver true tactical value in your digital business:

  1. High Degree of Customer Engagement – For any business, the degree to which its employees gel with each other is a key success factor. In order to encourage this theme using technology, there is no better option than going open source. Liferay is one such open source stack that helps to maintain your knowledge and innovation resources in a central location for further use.
  2. Improve Sales and Revenues – With cutting edge modern technologies built on OSS stack, it becomes very easy to replace legacy systems. By harnessing the benefits offered by open source solutions, your business can increase revenues and maintain a competitive advantage in the face of changing market trends and preferences.
  3. Boost Operational Efficiencies – OSS helps enterprises gain a tremendous boost in operational productivity and also improves efficiencies. CIGNEX Datamatics’ has proved this with its Alfresco based Enterprise Content Management (ECM) project for a Singapore based Financial Services company to automate procurement & contract systems. We not only helped the client migrate 5000+ legacy contract documents but also enabled a central document asset repository for its 14000 employees spread across 14 countries. As a result, productivity jumped up by 500% and country specific compliance was enabled.

The last few years have seen a massive jump in open source adoption by enterprises in the startup, mid-size and enterprise categories. As the demand for open source solutions keeps increasing, software service providers will be forced to deliver tangible business advantage to enterprises that will result either in cost reduction, an increase in revenue or boost innovation or all of the above.

CIGNEX Datamatics has a healthy portfolio of 500+ Open Source Enterprise implementations that has helped our clients grow exponentially and attract better business worldwide. Click here to learn more about the achieved business advantages offered by us in the Open Source space.