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Jon Brodkin from Network World reports on recent FOSS research from Gartner: Nine out of ten software-as-a-service providers will rely on open source software by 2010 to save money, but the cost savings likely won't be passed onto customers, Gartner says in a new research note.
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"The name of the game with software-as-a-service providers is dialing down your software acquisition costs," [Gartner Analyst Robert] Desisto says. "It's really economics-driven."
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The savings SaaS providers obtain by using open source software can be passed on to customers, added to profits, or used in R&D. Users shouldn't expect to see any cost savings, though, Desisto writes. The savings are more likely to go toward the vendors' bottom lines or R&D. If cost savings of SaaS FOSS adoption are not passed to consumers, but directed towards firms' operating costs and (re)investments in innovating activity, consumers may still benefit from the increased choice of goods-services in the technology market. Interestingly, if consumers do benefit in this scenario, they would do so because these firms are behaving like traditional commercial entities in watching their bottom lines, rather than ascribing to FOSS ideology.
posted by Noel Le @ 10:19 AM | Free Culture Movement
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