2005

Open Source Trends

Srikanth Sundararajan

Open Source Adoption Trends

Open Source Survey ResultsSource: Forrester Research

Open Source Technology Maturity

• Mature technologies– Linux Infrastructure: File, Print, Cache, Firewall– Programming Languages: Perl, PHP, Python etc– Security Tools: Snort IDS, Open SSL etc

• Moderately mature– Messaging servers: Postfix, Qmail, Sendmail etc– Web infrastructure servers: Apache, OpenLDAP etc– System administration utilities

• Adolescent– Application development tools: Eclipse, Netbeans etc– Open Source J2EE: JBoss, JOnAS– RDBMS: MySQL, PostgreSQL, Sleepycat– Directory Servers: OpenLDAP

• Emerging– Web Content Management: OpenCMS, Mysource, Zope etc– Linux on Desktop for Business Users: Red Hat, SUSE– Search Engines: Lucene, Swish++ etc– Calendaring and Scheduling: Mozilla, Novell– Business Apps like CRM, Sales force automation, HRMS etc

Enterprise Linux : Market

• Current share of new server shipments:– Microsoft : 60%– Linux : 16%

• The Linux server market rose by 57 % to around $1 billion in Q1-04, and unit shipments climbed 46 percent over Q4-03

• Of these, HP and IBM each account for 30% of shipments, with Dell at 18%

• IDC projections for Linux-based servers in 2008– 29 percent of shipments– 16 percent of sales ($9.7 billion)

• Gartner predicts that going forward, Linux-on-Intel servers will outperform the overall market

Enterprise Linux : High on Mind-share

Linux figures high on future server OS investment plansSource: Forrester Research

Enterprise Linux : High on Mind-share

Linux will eat into Proprietary Unix’s share in the next 3 yearsSource : Forrester research

Enterprise Linux : Drivers

• The relatively low cost of Linux server, client and source code licenses compared with many other OSs (most notably, Windows)

• Industry support– The marketing and support of Linux by the major worldwide server vendors including

Dell, Hewlett-Packard, IBM and Sun Microsystems– Major ISVs like CA, Oracle, SAP porting their software to Linux

• The use of Linux in high-performance computing clusters

• Linux Standard Base, a set of standards that increase compatibility among Linux distributions and enable applications to run on any compliant system

• The growth of Linux expertise through its use in educational institutions

• The concern over Windows security issues

Enterprise Linux : Inhibitors

• Limited scalability compared to Unix

• SCO Group's argument that Linux infringes its copyrights– The company has threatened legal action against companies using Linux if they

don't buy a Unix license from SCO– Has filed a lawsuit against IBM and the open-source community

• Mainstream vendors offer added value to traditional Linux suppliers in terms of hardware, software and integration services

– Non-converging standards– Increasing support costs

• The feature-rich aspects of other OSs such as Windows

Enterprise Linux : Geography-wise forecasts

Linux server shipment forecastSource : Gartner research

Enterprise Linux : Red Hat

• Red Hat’s exit from the desktop market and focus on the server market has shown dividends

– It is the leader in Linux servers with a 70% to 80% share of the Linux market in the US, and a worldwide share of more than 50%

– The company's revenue for the 1st quarter of fiscal 2005 was US$ 41.6 million, an increase of 13% compared the 4th quarter of fiscal 2004, and a year-on-year increase of 53%

• Red Hat has forged strong partnerships with database and application server ISVs like IBM, Oracle, MySQL to fulfill the middleware stack on Linux

• Red Hat’s OSA is an open-source implementation of app server and clustered file system add-on layers to Enterprise Linux; this will lead Red Hat to the application platform suite (APS) market; but will pit it against its partners — BEA, IBM, Oracle which sell their own APS

• The challenges for Red Hat are:– Ability to provide support for day-to-day IT operations– Ability to deal with needs of IS organizations migrating from Unix– Its pricing strategy for Technical Support is on a per-server basis; this compares poorly

with enterprise-level support for Unix and SUSE, specially for large, scalable deployments

Enterprise Linux : Novell

• Novell's acquisitions of SUSE Linux and Silver Stream have armed it for the open-source enterprise platform market. The key pieces in Novell’s enterprise push:

– SUSE Linux– exteNd Application platform suite (app server, integration, portal)– long-held relationships and reputation in mainstream enterprise environments

• Novell’s advantages over Red Hat– Novell can attract Linux-bound users with a service pricing strategy based on service

levels rather than the per-model subscription support of Red Hat– Novell’s exteNd APS puts it some years ahead of Red Hat’s OSA (which has delivered

only the application server part of OSA called JOnAS) in terms of providing an integrated software stack

• Novell is also foraying into the desktop market, combining SUSE and Ximian

• Novell’s EU strength– Gartner estimates that SUSE Linux holds about 17% of the Linux server distribution

share today. Most of that (about 55%) is based in Europe– Europe's Web hosting boom is giving a boost to SUSE Linux– SUSE grew to 11.8 percent of the EU market & more than 347,000 sites

Open Source Application Development : Eclipse

• Eclipse offers a quality open-source alternative to commercial offerings such as JBuilder or Intelli. Many vendors are attracted to Eclipse because it offers a robust and low-cost starting point on which to build their own tools

• Eclipse use– 18,000,000 downloads– Over 450 plugins– 50+ members in the new Eclipse Foundation

• Adoption trends: (between spring 2003 and spring 2004)– Asia Pacific: More than 70 percent increase – Europe, Middle East, Africa: More than 60 percent increase– North America: More than 90 percent increase

(Source: Evans Data)

• Eclipse-based plug-ins would be easy to integrate into IBM’s own platform offerings and would strengthen the software ecosystem around theWebSphere platform, thus benefiting IBM

Open-Source J2EE : JBoss

• JBoss is the open-source leader in North America and has a growing presence in Europe but is likely to lose market share to 1 or 2 competitors, while the Open source category overall will likely gain J2EE market share at the expense of its commercial alternatives

• What JBoss is doing right?– J2EE Commoditization - Free software, with revenue from services, support and training– Modified Open Source Model - JBoss develops and distributes the product. This gives it

• Control of the product’s business evolution• Services and support revenue• Exclusive association of the JBoss product brand with the JBoss company

– Partnerships with HP, Unisys, CA, Novell, Borland, IONA, webMethods, Sonic, Intel, mySQL

– Technical Innovation – Microkernel Architecture, Aspect-Oriented Programming (AOP)

Other Open Source App Server Competitors

• Java Open Application Server (JOnAS) from the ObjectWeb consortium– Consortium Approach differs greatly from JBoss’ “For-Profit” model– Small installed base in France & Germany, virtually unknown in the United States– Endorsed by Red Hat as strategic J2EE implementation for Red Hat Linux distribution in

the US– This may propel it towards higher deployment share in US at the expense of JBoss in the

next two years

• Tomcat– Currently a J2EE functionality subset– The Apache Consortium has formed project “Geronimo” to extend Tomcat into a full

standard J2EE offering– Tomcat’s wide popularity and Apache’s close relationship with IBM make this a platform

to watch out for

Open Source DBMS

• DBMS market still dominated by Oracle, IBM and Microsoft; 80% enterprises using them for mission-critical deployments

• Open-source products lag proprietary ones in high-end capabilities and overall maturity, e.g. MySQL doesn’t have triggers, views, stored procedures

• However, open-source databases are being deployed on small or midsize installations, specially as part of an organization's Web infrastructure

• Open-source DBMS deployments are non-mission-critical, but Forrester predicts that more than 20% deployments will be mission-critical by 2006

Open Source DBMS : MySQL

• Statistics– MySQL has more than 4 million installations; It earned $12 million in revenue last year– The usage of MySQL for developing applications rose 30% over the past year

• Positive signs– In a Forrester survey of 85 North American firms that use or plan to use open source

software, 52% said that they use or plan to use MySQL– More than 100 vendors are shipping commercial MySQL-based applications

• Concerns– Few packaged applications run on MySQL, and big-name software vendors such as

PeopleSoft, SAP, and Siebel Systems don't support it– There is a lack of 3rd-party tools for MySQL compared to Oracle and SQL Server

• Prospects– MySQL's newest version which is expected next year will include hitherto absent

functionalities like stored procedures, cursors, and views– MySQL took over development of SAP DB, an open-source database controlled by SAP.

Renamed Max DB, this is positioned better to compete with the big guns

Response to Open Source DBMS

• Established vendors are slashing prices– In February, Oracle dropped the price of its Oracle Database 10g Standard Edition One

by $1,000 per processor– Microsoft’s SQL Server 2005 Express Edition is a free, scaled-down version of its

database targeting students and hobbyist programmers

• Proprietary databases have been open-sourced– This ensures that thousands of developers use and enhance their product, especially if it

wasn’t a great product to begin with– IBM

• IBM has bequeathed its Java-based Cloudscape database to the Apache Foundation. It is the first fully functional Java database donated to open source

• The Cloudscape move is a frontal attack by IBM on Microsoft Corp, by trying to get people to use the Java stack rather than the Microsoft stack

– Computer Associates• CA has also released its database product Ingres to the open source community• CA claims more than 25,000 customers of Ingres, although it has very limited penetration in

North America

Open Source IPR issues

• The GNU General Public License (GPL) is not a model of clarity– The demarcation of activities triggering a clause forcing developers to release any changes

made on open source code is ambiguous– Few disputes involving the GPL have gone to court

• The SCO threat– In March 2003, SCO sued IBM, whose Linux code allegedly contained Unix elements,

and threatened to revoke IBM's AIX license– SCO claims enterprises may be liable if their Linux production systems run some of

SCO's Unix System V code or libraries

• Open Source Risk Management, which indemnifies its customers against infringement claims, found in a review on Linux code that the OS potentially infringes on 283 patents

– These patents have been issued but not yet validated by the courts– IBM declared it would make no effort to enforce its 60 patents– Some are held by Linux foes, including 27 by Microsoft

• As a result of potential patent-violation issues, the city of Munich's plans to switch 14,000 computers to Linux was put on hold

Open Source Strategies for various players

How different players use Open Source Software to their Advantage

Open Source Strategies for various players

• Optimization Strategy– Winners leverage their capabilities in optimizing the interdependent layers adjacent to the

commodity layer and achieve greater value– E.g.. Oracle sells its database solution with commodity Linux and server hardware –

charging a hefty premium, but still helping clients save on the total cost

• Dual License Strategy– Conditional Free Use license and a Commercial license with distribution rights and more

features– Free use license simplifies application development and testing (internally), unlike highly

supervised trial licensing practices and enhances adoption– E.g.. MySQL and Sleepycat follow the dual license strategy

• Consulting Strategy– System Integrators (SIs) or Value Added Resellers (VARs) – the vendors closest to the

customer - typically perform high margin custom application consulting and can leverage Open source to remove nearly all licensing costs from a proposed solution, and create winning bids for customers, at both lower prices and higher margins

– E.g. 10X Software, provides enterprise integration consulting for open source software like MySQL, Apache, Tomcat, JBoss and Eclipse

Open Source Strategies for various players

• Patronage Strategy– Contribution may be made to drive standards adoption or to garner community support.

Patronage may also help commoditize a particular layer of the stack, eliminating competitors, also creating an opportunity to offer value higher up the stack

– E.g. IBM with Linux, Apache and Eclipse

• Subscription Strategy– Revenues from services – both maintenance and consulting – increase in proportion

relative to revenues from licenses– Red Hat’s revenue comes from maintenance“subscription” and consulting/training

“services”. Covalent also runs a subscription and support business around the OSS combination LAMP (Linux, Apache, MySQL and PHP)

• Embedded Strategy– Open Source is an ideal fit for the embedded systems market because it is functional,

extensible and quickly implemented with minimal capital outlay. Vendors also save on engineering, prototyping and demonstration hardware costs

– E.g. Deploying Linux on commodity hardware, helped Neoteris, a network device developer, to concentrate on value added software; it delivers a product with more features, months before competition and at a lower price

Leading IT Vendors’ Open Source Strategies

Hewlett-Packard

• HP reported around $2.5 bn in Linux-based revenue (products, services, software) for FY03

• HP is the market leader in the rapidly expanding Linux server market with around 30% share

– HP ProLiant servers lead Linux x86/IA-32 server market with 27.4% share– HP Itanium-based Linux servers lead EPIC-based Linux server market with 66.7% share– Linux portion of the Proliant sales represents 15 percent (~$1 billion) of the overall

Proliant business. HP estimates that the Linux share will rise to 20 percent in the next 12 to 18 months

• Has unveiled Linux reference architectures with key partners BEA and Oracle and open source players like MySQL, JBoss, Apache and OpenLDAP

– HP is positioning itself as the independent platform for both the unaligned software vendors, as well as for enterprises concerned about the “one vendor sells all” approach of IBM and Microsoft

• Provides indemnity to its customers against any legal liability from the use of Linux – to pacify adopters’ apprehensions about SCO’s lawsuits

Sun Microsystems

• Sun’s Problems– Both of Sun’s proprietary platforms (Sparc and Solaris) are under attack from the Intel

Itanium and Linux– Sun has lost a significant portion of its business to Linux servers running on inexpensive

Intel-based systems• Linux server shipments grew by 57 percent year-over-year in the first quarter of 2004• Sales of Unix servers declined by three percent during the same period

• Sun’s Strategy– Sun announced earlier this year that it intends to open the source code for its Solaris

operating system– To encourage Linux users to try its products, Sun has made Solaris and Linux seamlessly

interoperable, enabling Linux applications to run on any Solaris-based system– Sun has resolved its legal issues with Microsoft via a settlement and has announced

intentions to collaborate with Microsoft on interoperability

Microsoft

• Mono 1.0, an open-source development platform based on Microsoft Corp.'s .Net framework, is designed to enable software developers to create .Net applications that will work on Linux, Windows, Solaris and other operating systems

– It includes a C# compiler, a .Net-compatible runtime and two stacks of APIs, one compatible with Linux, the other with the Microsoft .Net Framework 1.1

– Mono 1.0 also incorporates such key .Net-compliant components as a portable execution system that includes just-in-time and pre-compilation support

• Microsoft’s Common Language Infrastructure is part of a strategy to counter open-source

– CLI is a “virtual machine” that supports all contemporary, and legacy, programming languages; and aside from Microsoft’s “house” languages (C++, J++ and Visual Basic)

– Microsoft has released a “Shared Source CLI” which contains the source code for a reference version of the CLI that runs on FreeBSD and Mac OS X

IBM

• IBM has been a strong Linux supporter and sees Linux as a source of additional applications for its hardware and software platforms

– IBM offers Linux consulting and services activities, which include a range of outsourcing capabilities and service offerings

– IBM has implemented application development and marketing programs and tools to assist Linux ISVs and partners, who have developed more than 4,700 Linux solutions registered in IBM’s Global Solutions Directory

– The company offers a range of Linux enterprise solutions, including infrastructure support, cluster management, workload consolidation and applications. These solutions can be built on IBM middleware: WebSphere, DB2, Tivoli, Lotus Domino and Rational tools

– IBM helps developers test their applications using IBM middleware and servers at IBM Porting Centers, which are staffed with Linux consultants

• For IBM, Linux is a weapon against Microsoft– Linux is seen as the answer to Microsoft’s domination of the platform and OS market– Putting Linux servers on IT networks running numerous protocols and applications is

likely to generate subtle problems. From a professional services and support revenue perspective, fewer dollars go to Microsoft and more billable hours debugging “free” software stay in IBM’s pockets

Cognizant and Open Source

The Open Source Center of Excellence

• Objectives

– Understanding and building expertise in OSS technologies

– Evaluation of OSS Technologies, to meet business / IT processing requirements

– Development of OSS solutions aligned with market requirements

– Creating processes and frameworks to execute customer projects in OSS technologies

– Providing consulting services to OSS users

The Open Source Center of Excellence

• Team– A dedicated team of resources

• Infrastructure– A lab with Intel, Sun and IBM Z-Series systems

• Software– Open-Source products– Third-party and Proprietary tools

• Processes– Evaluation, Development and Migration processes– Consultancy framework

• Partnerships– Tie-ups with OSS consortium members, e.g. IBM

Our Open Source Offerings

Deployment Ø Deployment of OSS (Open Source Software) in enterprise applications (E-Business)

Ø Design, development, testing, migration, porting and maintenance of e-business applications

Ø Deployment of Linux in Infrastructure environments

Migration Ø Migration of applications from Unix and other proprietary environments to OSS technologies

Ø Unix to Linux

Ø Proprietary database to open source database etc

Consulting / Re-

architecting

Ø Comprehensive framework / methodology to provide OSS Consulting / Re-architecting

Ø Technology evaluation & selection

Ø Open Source architecture consulting

Ø Product comparison studies

Ø Computation of ROI, TCO & other economic semantics of technology

Ø Performance, Reliability, Availability & Scalability study of OSS

OSS Tools Ø Customization and configuration of tools in OSS environments

Product Engineering

Ø Core development

Ø Feature Enhancements

Ø Testing & Integration services

OSS Product Expertise

• Operating Systems– Linux (Red Hat, SUSE, Fedora), Unix, HP-UX, Solaris

• Web Servers & App Servers– Apache, Tomcat, Jboss

• Databases– MySQL, PostgreSQL, BerkeleyDB, Ingress

• Scripting Languages– Perl, PHP, Python

• Content Management– JetSpeed, TikiWiki

• Other Components– AXIS (Web Services)– Hibernate (Data Persistence)– Log4J (Logging)

Open Source Initiatives

• Cognizant has partnered with an open-source product company– The company offers validated and certified open source stacks with add-on functional

features geared for faster implementation and applications manageability– Cognizant is providing product engineering support and looks to offer professional

services to customers of the product

• Product Engineering (Current Phase)– Cognizant is helping to build the stack, writing comprehensive test cases, bug fixing and

fine tuning of the product– There is currently a team of 12 full time resources along with a Project Manager working

on the engineering phase

• Professional Services (Future Phase)– Cognizant will take the responsibility of implementation and deployment of the open-

source stack at the customer sites– Cognizant will also look to aggressively cross-sell this software solution through its

vertical-based projects once the stack has been tested and found acceptance in the enterprise community

Open Source Initiatives

• Cognizant is working closely on OSS/Linux initiatives with IBM– Aim to reach out to the OSS community in India– Link up with corporates and ISVs considering the OSS platform

• Partnerships with HP and Novell are also in the pipeline

• Cognizant is standardizing on OSS tools for J2EE development:– Eclipse IDE– Cloudscape, MySQL databases– Tomcat, Jboss App Servers– Apache Web Server

Open Source Initiatives

• Cognizant is in the process of porting several vertical-specific solution offerings to Open Source platforms

• Yardelligent– A comprehensive yard management system built on J2EE– Has been deployed at Ford and GroupeCat

• Waste Trace– Waste-Trace (WT) is a web-based, end-to-end solution for waste management– Helps in tracking waste streams from the point of generation of the waste, through to the

transportation till the disposal stage– Enables compliance with EPA, DOT and other Federal regulations governing the

classification, shipping and disposal

An Example: Leading Hardware Retailer

Existing Scenario

• Backend systems using proprietary infrastructure

and third party products over the last 15 years

• All POS systems were in DOS environment,

backend application systems were built using

COBOL and C

• Up-gradation and maintenance costs of

infrastructure and software products were

substantial

• The above factors along with lack of support

from vendors forced and triggered the systems

upgrade

Leading Retailer having more than 800 stores across Globe

Cognizant’s Solution

• Moved more than 400 stores to OSS / Linux

environments including servers and POS systems

• Using newer technologies and a number of

freeware tools for productivity

• Maintenance costs are substantially low

Business Benefits

• Saved more then US $ 11 million on

infrastructure and licenses

• Vendor Independence

• Reduction in up-gradation and maintenance costs

of infrastructure and software products

• Re-usability of existing infrastructure and

software

Thank you2005