San Francisco (InfoWorld) - SAN FRANCISCO - The next wave in open source development is applications, which presents opportunities for open source vendors to focus on the small- and medium-sized businesses that established commercial vendors cannot reach, said Larry Augustin, CEO of Medsphere Systems and a founder of VA Linux Systems, on Tuesday.
Speaking at the Open Source Business Conference, Augustin cited the growing success of offerings such as the open source SugarCRM package as well as Medsphere’s own OpenVista electronic health record system, based on the public domain VistA system.
“I believe the traditional enterprise software model is fundamentally broken,” Augustin said.
Traditional vendors of applications such CRM and ERP systems are burdened with long sales cycles and high sales and marketing expenses, Augustin said. Users of these systems must pay large, upfront fees, he added. The cost of these systems also makes it tough for the vendors to penetrate small- and medium-size businesses -- something that does not burden open source vendors, he said............
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