Skip to main content

Open Source Services Follow Software Lead

Based on the findings from a recent survey, IDC forecasts that open source software and related services will continue to expand in importance to end-user organizations.

Additionally, almost 60 percent of the survey respondents said their company's spending on open source increased in 2007, in terms of relative percentage of IT spending.

Quality assurance, testing, and certification of open source systems was rated as the fastest-growing services opportunity by respondents, who projected their spending on this service would grow 150 percent between 2007 and 2008.

"The economic slowdown in the United States may actually boost demand for open source services," said Gard Little, program manager, IDC's Worldwide Services and Emerging Services Opportunities research programs. "If organizations adopt more open source software as part of a strategy to reduce software costs, the demand for related services should increase."

IDC predicts more pure service providers will be driven to forge alliances or partnerships with leading open source technology vendors or development communities to stay top-of-mind with end-user organizations.

This is because pure service providers ranked lower than IT product vendors in terms of respondents' plans to use external service providers, and because pure service providers generally ranked lower on the attribute of open source-related service innovation.

Key findings of the IDC study include:

- Cost savings remained the number one reason for respondents to adopt open source software.

- The service opportunity around open source remains with medium-sized and larger organizations. Respondents from companies with 1,000-9,999 employees reported the highest percentages in spending for 2007 across all services categories except support.

- Respondents believe the biggest challenge vendors face in delivering open source-related services is integrating open source and proprietary software components.

- Technology vendors generally have a leg up when compared to pure service providers in terms of respondents' plans to acquire external services, and respondent's perceptions of who provides the most innovative services related to open source software.

Popular posts from this blog

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year