[Sussex] OSS for Software Houses

Geoff Teale Geoff.Teale at claybrook.co.uk
Fri Nov 29 08:42:00 UTC 2002


Chaps..

A discussion point - with relevance to my life.. Nik'll love this one ;)

Please, please, please prove me wrong.

There's still one big problem with OSS as a software vendor. The existing
companies (like Claybrook) won't go that way without significant expressed
demand - the customers won't go that way because no-one is offering it, big
customers who _really_ want it work out that it is cheaper to develop
internally than pay an outside company to develop something from scratch
(I've been there once already as some of you know, my current position owes
a lot to that fact) catch 22.

Here's one for Nik and the boys.  What would you give to be able to roll out
something like SAGE on LINUX?  How many small business rely on of-the-shelf
software like SAGE, ACT, Great Plains.. - most of it isn't really that good,
but it doesn't really have any competition in the OSS world.

So, I figure there is a gap in the market.  The trouble is, how do you
convince a Bank or Venture capitalist that there's money in taking 18 months
to write version 1.0 of a product that anyone can copy, change, etc.. and
you can't sell on a per seat basis.  You and I know (or hope) that there is
money in the service aspect of it and consulting for it - how do you
convince them that people will pay YOU for it and not some other person who
is legally using and supporting your code?  Companies like Goldmine (for
example) make their money through licenses and through feeder contracts with
VARs (Value Added Resellers) - there's a pyramid of wealth creation.  OSS
companies don't have that opportunity because they cannot exclusively tie
people in.  Now don't get me wrong, I'm very strongly in favour of the
OSS/Free Software model, but I have to wonder how anyone can get financing
to develop these applications that are essential to business.  

SAGE will not be replicated by the community without some kind of funding
becasue: 

1. You need accounting knowledge, you would need to employ accountants to
consult.

2. It isn't glamourous or fun - everyone wants to be a kernel hacker -
nobody want to write accounting software.


Discuss...


-- 
GJT
geoff.teale at claybrook.co.uk




The above information is confidential to the addressee and may be privileged.  Unauthorised access and use is prohibited.
 
Internet communications are not secure and therefore this Company does not accept legal responsibility for the contents of this message.
 
If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful.
 
Claybrook Computing Limited is a subsidiary of Claybrook Computing (Holdings) Limited
Registered Office: Abbey House. 282 Farnborough Road, Farnborough, Hampshire GU14 7NJ
Registered in England and Wales No 1287205
 
A Hogg Robinson plc company





More information about the Sussex mailing list