Open Source and Enterprise 2.0 The Next Generation IT Solution for Small Medium Enterprise (SME) By V.Vishnu Roll : 0701MBA1744 Guided by Mr. Giridhar Raju

Problems faced by SME Adoption of IT in SME due to high implementation cost Adoption of IT in SME due to high implementation cost Tight IT Budget due to Global Meltdown Tight IT Budget due to Global Meltdown High proprietary software license cost High proprietary software license cost High IT Infrastructure maintenance cost High IT Infrastructure maintenance cost High Energy cost (Demand for Power) High Energy cost (Demand for Power)

IT Spending in the future by IDC IDC Expects Worldwide IT Spending Growth to Slow Significantly, But Remain Positive, in Nov 2008 FRAMINGHAM, Mass., November 12, 2008 – Worldwide spending on information technology will slow significantly in 2009 as a direct result of the global financial crisis that began in September According to a newly revised forecast from IDC, worldwide IT spending will grow 2.6% year over year in 2009, down from IDC's pre-crisis forecast of 5.9% growth. In the United States, IT spending growth is expected to be 0.9% in 2009, much lower than the 4.2% growth forecast in August. "Although all the economic forecasts went from up slightly to down drastically in a matter of days, the good news is that IT is in a better position than ever to resist the downward pull of a slowing economy," said John Gantz, chief research officer at IDC. "Technology is already deeply embedded in many mission-critical operations and remains critical to achieving further efficiency and productivity gains. As a result, IDC expects worldwide IT spending will continue to grow in 2009, albeit at a slower pace." Source :

Solution to SME IT woes Open Source Open Source Enterprise 2.0 Enterprise 2.0

Open Source Development Methodology Development Methodology Accessibility to product source Accessibility to product source Possible design approach Possible design approach Cuts License cost Cuts License cost Lowers Total Cost of Ownership (TCO) Lowers Total Cost of Ownership (TCO)

Open Source Saves “Less than two years ago we evaluated our software needs and the cost of upgrading our OS licenses. We wanted to become fully legal and up to date with our software licensing. The desktop software licenses were going to cost approximately $ each, that was $ total in desktop software licensing. The servers were going to cost us approximately $ in software licensing, as we were going to upgrade to MS Windows 2000 Server and Exchange 2000 Server. This $12, figure was extremely high for our shop. We'd also have less available software, because we were not going to purchase software that wasn't absolutely necessary. This is when we looked into using open source. Open source software provided all the tools we needed for less than $100.00, total. Re- training cost was all we had to pay for, that payment would be in the form of time. When the estimated cost of retraining was compared to proprietary software's licensing fee's, we made the decision to migrate to opensource.” “Less than two years ago we evaluated our software needs and the cost of upgrading our OS licenses. We wanted to become fully legal and up to date with our software licensing. The desktop software licenses were going to cost approximately $ each, that was $ total in desktop software licensing. The servers were going to cost us approximately $ in software licensing, as we were going to upgrade to MS Windows 2000 Server and Exchange 2000 Server. This $12, figure was extremely high for our shop. We'd also have less available software, because we were not going to purchase software that wasn't absolutely necessary. This is when we looked into using open source. Open source software provided all the tools we needed for less than $100.00, total. Re- training cost was all we had to pay for, that payment would be in the form of time. When the estimated cost of retraining was compared to proprietary software's licensing fee's, we made the decision to migrate to opensource.”

Open Source Adoption

Enterprise 2.0 Technologies and Business Practices that liberate workforce Technologies and Business Practices that liberate workforce Software as a Service (SaaS) Software as a Service (SaaS) Cloud Computing Cloud Computing

Hypothesis Why Open Source alone cannot meet the needs Why Open Source alone cannot meet the needs How Enterprise 2.0 chips in to help SME How Enterprise 2.0 chips in to help SME The cost incurred with proprietary development The cost incurred with proprietary development The cost incurred in running data centers The cost incurred in running data centers How SME are relived of IT maintenance cost How SME are relived of IT maintenance cost

Open Source – Heavy weight

Barriers to Open Source Adoption in Enterprise Informal Support Informal Support Velocity of Change Velocity of Change No Roadmap No Roadmap Functional Gaps Functional Gaps Licensing Caveats Licensing Caveats ISV endorsements ISV endorsements Source : ZDNet

SaaS Software as a Service (SaaS, typically pronounced 'sass') is a model of software deployment where an application is hosted as a service provided to customers across the Internet. By eliminating the need to install and run the application on the customer's own computer, SaaS alleviates the customer's burden of software maintenance, ongoing operation, and support. Conversely, customers relinquish control over software versions or changing requirements; moreover, costs to use the service become a continuous expense, rather than a single expense at time of purchase. Using SaaS also can conceivably reduce that up-front expense of software purchases, through less costly, on-demand pricing. SaaS lets software vendors control and limit use, prohibits copies and distribution, and control all derivative versions of their software. This centralized control often allows the vendor to establish an ongoing revenue stream. The SaaS software vendor may host the application on its own web server, or this function may be handled by a third-party application service provider (ASP). This way, end users may reduce their investment on server hardware too. Software as a Service (SaaS, typically pronounced 'sass') is a model of software deployment where an application is hosted as a service provided to customers across the Internet. By eliminating the need to install and run the application on the customer's own computer, SaaS alleviates the customer's burden of software maintenance, ongoing operation, and support. Conversely, customers relinquish control over software versions or changing requirements; moreover, costs to use the service become a continuous expense, rather than a single expense at time of purchase. Using SaaS also can conceivably reduce that up-front expense of software purchases, through less costly, on-demand pricing. SaaS lets software vendors control and limit use, prohibits copies and distribution, and control all derivative versions of their software. This centralized control often allows the vendor to establish an ongoing revenue stream. The SaaS software vendor may host the application on its own web server, or this function may be handled by a third-party application service provider (ASP). This way, end users may reduce their investment on server hardware too. software deploymentInterneton-demandapplication service provider software deploymentInterneton-demandapplication service provider Source : Wikipedia

Merge of SaaS & OSS According to Zimbra “Software as a Service (SaaS) is often seen as an alternative model to Open Source Software (OSS) for the delivery of next-generation software. However, we argue below that SaaS and OSS are independent and even complementary paradigms.”

Target Respondents Entrepreneur Entrepreneur Chief Information Officers (CIO) Chief Information Officers (CIO) Chief Technology Officers (CTO) Chief Technology Officers (CTO) IT Managers IT Managers

Project Type : Descriptive Type : Descriptive Method : Survey (Questionnaire) Method : Survey (Questionnaire) Sampling Method : Systematic Random Sampling Sampling Method : Systematic Random Sampling Data Processing : Online collection of data Data Processing : Online collection of data Tools : Percentage Analysis Tools : Percentage Analysis