Well, I'm more into staying having the general goal of first staying afloat and second on trying to develop a new market on the side. Going into a price competition with the big brothers could sometimes get very ugly. :-) H.Ozawa
2009/12/14 Gervas <[email protected]> > > > > --- In > [email protected]<service-orientated-architecture%40yahoogroups.com>, > Sanjiva Weerawarana <sanj...@...> wrote: > > > > > On Sun, Dec 13, 2009 at 7:17 PM, Gervas <gervas.doug...@...> wrote: > > > > > > > > Rather as we would have thought about General Motors and Lehman > Brothers a > > > couple of years ago?? Open Source is changing the business paradigm. It > is > > > probably those large software houses who are mainly dependent on huge > > > licence fees that are looking the most vulnerable strategically. IBM to > > > their credit have seen this coming for some time, hence they being the > first > > > major player to shift the emphasis from hardware and software licences > to > > > services. > > > > > > > While changing the model indeed is happening, it is interesting to note > the > > difference in margins. Most of IBM's profit comes from software licenses > > For the moment, yes, but they realise that the balance is changing which is > one reason that they were the first major software vendor to put so much > effort and resource into building up their lower-margin service divisions. > The other major software vendors are going this way too, more than most > people realise. > > > ... > > > > > Our target is to eat at IBM & Oracle's software licenses .. we offer much > > better value at a much lower price ;-). > > One of the factors working against the major vendors is that where a > particluar marketplace is highly competitive, the resellers make pitiful > margins. In such an instance they might as well sell services and not worry > about minimal licence revenues. > > > > > > I fully understand and appreciate Ozawa-san's assertion of "no one ever > got > > fired for buying IBM|Oracle|SAP". > > True now, but SOA could contribute the gradual dismemberment of their > monolithic offerings. > > > We are working to get there but it'll take > > time. IBM didn't get there in 5 years and neither will we .. but we're > > patient :-). Furthermore, by adopting technology that's truly 100% open > > source (not bait-n-switch open source), the customer always has some > > protection anyway - they always have ALL of the source with them if they > > want to get someone else to support it. > > This also means that code escrow services become less relevant. > > Gervas > > > > > Sanjiva. > > -- > > Sanjiva Weerawarana, Ph.D. > > Founder, Director & Chief Scientist; Lanka Software Foundation; > > http://www.opensource.lk/ > > Founder, Chairman & CEO; WSO2, Inc.; http://www.wso2.com/ > > Member; Apache Software Foundation; http://www.apache.org/ > > Visiting Lecturer; University of Moratuwa; http://www.cse.mrt.ac.lk/ > > > > Blog: http://sanjiva.weerawarana.org/ > > > > >
