Open-source cost savings: The video (director's cut)

Open source is a great way to simultaneously boost productivity while saving money, as this video from OSCON shows.

Open source delivers significant cost savings, and the market is taking notice: IDC has significantly revised upwards its estimates of global revenue from open-source software. IDC now expects worldwide open-source revenue to grow at a 22.4 percent compound annual growth rate to top $8.1 billion by 2013.

That's a lot of money for free stuff.

The reasons, as I wrote on Wednesday , are clear: open source delivers increased flexibility, improved performance, vendor independence, and, yes, cost savings. According to Computerworld UK, London Paper reports saving 66 percent by using an open-source CMS (Drupal). The Gap, meanwhile, dumped Windows for Red Hat offerings to save money and improve platform flexibility.

Open source: it's what the smart CIOs are using.

But you don't have to take my word for it. Sigurd Magnusson, co-founder of open-source Web content management company SilverStripe, recorded the "Beyond the Hype: The True Costs of Open Source" session at OSCON last week, which he has graciously shared here:

So, yes, you could waste your IT budget on expensive, "sustaining innovations" from old-school vendors. Or you could buy best-of-breed open-source solutions at 10 percent of the cost.

It's your money, after all. Well, unless you give it all to your vendor.

Follow me on Twitter @mjasay.

Tech Culture
About the author

    Matt Asay is chief operating officer at Canonical, the company behind the Ubuntu Linux operating system. Prior to Canonical, Matt was general manager of the Americas division and vice president of business development at Alfresco, an open-source applications company. Matt brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. He is a member of the CNET Blog Network and is not an employee of CNET. You can follow Matt on Twitter @mjasay.


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