Friday, February 23, 2007

Open Source Software & Software-for-Advertisement (SFA)

In a recent FT interview, Microsofts CEO Steve Ballmer suggests that open source is not a technolog phenomenon, but just a business model -- does this show how well Microsoft understandsopen source?

"What was the number one different business model that our company has confronted in the last six years? It’s Open Source. Open Source is not a technology phenomenon; it is a business model phenomenon. Frankly speaking, exactly what that business model is, is still unclear."

He also states that Linux's marketshare (>30% in servers) is actually an opportunity for Microsoft, rather than a threat.

Besides open source however, another major strategic priority is what he calls advertisement-funded business model. Think of an extension of the Google search model to more IT web services and software...Shall we call thatSFA (software for advertisement)? Is SFA going to be a disruptive force in software in the coming years? Is SFA going to have a larger impact than OSS (Open source software)? For those of us interested in the latest business-shaking tech trends, that would be a great question to ponder about.

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