On Thu, Jun 30, 2005, Omer Zak wrote about "MF vs. LAMP - orthogonal to closed 
vs. Free (was: Re: Off topic - open vs. closed sources Re: compiling expect 
sources or easy to use c++ engine?)":
> Nowadays, IBM is one of the biggest (if not the biggest) supporters of
> Linux developments.  They are in the business of tailoring solutions for
> customers, rather than selling shrink-wrapped software.  Therefore,
> using Linux and Linux-based software makes a lot of business sense for
> them.

Actually, that is not as simple as it sounds. First, the plain fact is that
most software that IBM is currently involved in is NOT open source or free
software. Second, IBM has to face, and in the future this will become
even more urgent, the problem of how to avoid making a complete
transformation from a research and development company, into a low profit
margin "chevrat co'ach adam" (how do you say that in English?).
It is not clear that it is in IBM's (and other companies, like Nzer's) best
interests to stop hiding their home-grown software, and instead to just get
paid, by-hour of support person, for the specific fixes and upgrades the
users want. Like Nzer said, there's a limit to what you can charge for an
expert's hour (if you overcharge, they'll just find a cheaper expert), while
there's almost no limit to what you can charge for new software.

Obviously, the "IBMs" and similar companies of the world will need to face
competition from some small company that comes to a customer and tells him
"We can install for you a piece of free software, and only charge you half
what you pay now - we will modify this software software to fit exactly what
you need". And indeed, such companies are appearing and causing headaches to
companies that want to keep their old marketing techniques. But apparently,
these headaches are not (yet?) big enough to force the entire market to change
its ways.


-- 
Nadav Har'El                        |     Thursday, Jun 30 2005, 23 Sivan 5765
[EMAIL PROTECTED]             |-----------------------------------------
Phone +972-523-790466, ICQ 13349191 |The socks in my drawer are like
http://nadav.harel.org.il           |snowflakes: No two are alike.

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