Open Source as a part of the business strategy

First story

When I was at the ICGOV conference also the topic on Open Source came up. It was introduced by the Estonian precedent T-H. Ilves and after made a remark on the keynote e-Estonia in the evening that Estonia is the flagship in the world to implement usage of free and open software and all it happened because Estonia was a poor country. We don’t have so much money and people to spend on buying software but we have the brains to make different parts work together in a big system as an example: In year 1995 it was essential to cut down expenses in public sector.

The success was made also happen by changing the policy (directing 1% to ICT costs from the budget), providing new online opportunities (x-road), educating the users (look@world, Tiger Leap Foundation). It has changed peoples mind and behaviour how we see ourselves in the future, what is our existence in e-Estonia and as a first digital natives in an e-government world. In the conference there was lots of praising to the e-tax, e-health, e-parking, e-voting and free WiFi what is so common to use to the average Estonian. All it runs in open software.

The city of Tallinn example comes down to Information and Technology director Väino Olev who 2004 and even still now is responsible of cutting down expenses and implementing Open Soruce applications like Open Office, now Libre Office. And as I might say also Laur Mõtus has introduces schools different management tools like MANPERMO where you can easily maintain your systems whatever they might be. But it is a journey, so we still will see how the future will change because for now schools have Microsoft licencing provided from the Education Department for the next 3 years.

Read more: http://www.osor.eu/studies/open-source-software-in-estonia-a-long-term-policy

Second story

eXtropia is Public Domain Script Archive what was shared with the public in year 1994. The idea was that web developers could share know-how and because that save time and money wasted on solving the same problems over and over again. The secret idea was also that others might help to solve the problems also for the company and as it was sharing know-how everybody will benefit on that. As time goes by the company sees that still there is too much help needed to solve the similar problems for the developers and users and lots of valuable time is wasted to answering emails.

There were an option that the people who updated the archive stopped their day jobs or think of other solutions. As 1998 came they decided to try open and free software because of the liberties it will bring. As they also pointed out RedHat approach to doing business - people are convenient and lazy enough to pay a little more when they get it in a package as they like it – CD-ROM, book, additional help. Also the reputation to be concerned company will help as in several years ago some musicians let their music to be downloaded free or in that price what users might pay them to keep doing the good work.

As goes to the eXtropia approach was to share materials to them who were worthy enough to develop also their product and others just get the regular and powerful upgrades. The model is based on selling additional goods as RedHat does. How long it will go on we will not know, because digital natives are more likely to use computers instead of books or CD-ROMS. But as for the training I see even myself that people like to come together to meet others, discuss problems even when similar course is online free available or less price.

Read more: http://www.extropia.com/open_source_case_study.html

Third story

WordPress is an open source blog and publishing platform powered by PHP ja and MySQL. Lots of brands in America and all over the world have moved from other CMS to this one because the opportunities to customize your presence in web in a click. It is a problem to non-profit organizations because lots of big-name brands are choosing to cut down their budget but that is not all.

The interest of using open source is not only money but to have opportunity to do things as they want and like. The main point have been to switch to WordPress: I can post up my news myself not to wait when the other company will do it for me. The second point was that companies can customize everything (include bells and whistles) in a second and it will not take time, lots of planning etc. And the third was that only then the web companies who still want their profit starts talking in the same language – the open source language.

As for the Wordperss the business comes from developing extras and design. Everybody can make small business on that. The openness has made WordPress the most commonly used CMS, but it has also been an interest of crackers for a long time now. Also there is an opportunity to make money of web hosting, Google adSence, automatic Kismet, premium accounts, web host referrals, support and other products.