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.

Why Ballmer cultivates "strategic uncertainty"?

Steve Ballmer (Microsoft CEO) keeps cultivating "strategic uncertainty" about open source software and Linux: Linux, according to Microsoft may infringe on their IP (Intellectual Property) but they are reluctant to become more specific.

What this strategy is signaling is that Ballmer sees open source as a growing credible threat to Microsoft. However, hiding their best "legal weapons" till things get worse, is not the smartest strategy. So either Microsoft does not have any "legal weapons", or they do have but they have not figured out how to use them, or they are working hard to accumulate "legal weapons" but are not there yet. Unless they have decided that co-existing with open source, serves them better than fighting it, and the rest is just "strategic noise"

The promise of Open Source ERP

cio magazine discusses several examples of mid-size firms that are seeking to migrate to a new ERP system and have chosen an Open Source ERP (e.g. Compiere). Primary reasons? Avoid proprietary vendor lock-in, flexibility when it comes to customization (and cost savings at least for licensing).

As these early adopters had a very positive experience, open source ERP adoption may grow fast in the coming years.