Disregard Proprietary Software. Aquire Profit.

For organisations open-source software is becoming a significantly profitable venture that is reflecting the political landscape of western society – allowing for unregulated access and investment of capital to the most productive operation. We are witnessing companies beginning to invest in open-source software constructing the framework for an open ecosystem. Hewlett-Packard (HP) releasing source information of its internal e-speak program to the public in 2000 is just one example.

According to Rajiv Gupta the manager of HP’s eSpeak program, the increased usage of open source software from organisations and consumers, the more valuable it becomes. This was noted by Daniel Roth with Google creating the Open Handset Alliance and the platform for multiple ‘gPhones.’ Thus contributing to the rise of Android.

Rajiv Gupta illustrates that open-source software is increasingly profitable for organisations through expansion of products and services within the market. Open-source software further reduces the cost of development and marketing. Following HP’s move a multitude of companies have followed the open-source path to success as open-source increases the capacity of organisations to reach a wider audience.

Igor Faletski states that this is achieved through reducing the barrier of adoption, especially if organisational products require mass adoption or consumption for return on investment. Additionally open-source benefits companies that specialise in certain areas, with investment in security and continue to do so as newer versions are implemented. Furthermore open-source allows for progress of software and design. This is due to the notion that the code will experience heavy use by programmers, allowing for fixes and development.

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3 thoughts on “Disregard Proprietary Software. Aquire Profit.

  1. Hi Sam

    You made a good relation of this week topic to the political and economical situation. Your example of HP was also useful because it provides another case of the open-source reality besides the mobile phone world. Therefore, a comprehensive overview of the situation was depicted.
    As a student studying both Communication and Marketing, I really enjoyed your argument that open-source system reduces the cost of development and marketing. It is obvious that the more users use it and the more freedom it provides, the more people will know about it through informal channels. This also helps the system to perfect itself as all bugs and faults are recognized by users who dig deeply into it.
    One recommendation of mine is that maybe you should link to the closed-source as well to make your post more comprehensive as I consider Apple or other closed systems have their own advantages such as monopoly which can create benefits as well.
    This source provides a point of view over what I suggested which I think you might enjoy. http://www.economicshelp.org/blog/9359/economics/irritating-monopoly-power-apple/

    Hope to read more from you.
    Cuong.

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    1. Thanks Cuong for the recommendations involving further discussion of closed-source software. I’ll be sure to take them on board.

      In relation to a monopolised industry such Apple, I disagree that the benefits created from monopolies outway that of a competitive market. This is due to restriction of competition through increased barriers of entry such as significant capital required for initial trade. This is contrast to a competitive market as we see a ‘consumer surplus’ through a rise in the price above the required demand. This is where we see Apple producing high-cost products and services associated through restricting access. Additionally we see a reduction of innovation through lack of competition within the market.

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  2. Man, that was a detailed blog. I liked how you put your references in, made the whole post a lot cleaner and more organised, instead of having a giant list down the bottom. Your sources were great and made your work sound more informed and intellectual. Really enjoyed reading this post. Your meme was great by the way. Need more of those!

    Like

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