2010 Forrester Research, Inc. Reproduction Prohibited
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2 OSS Adoption Patterns In Enterprise IT Jeffrey Hammond, Principal Analyst August 11, Forrester Research, Inc. Reproduction Prohibited
3 When it comes to Enterprise IT adoption, Open Source Has Crossed the Chasm
4 A word about the surveys used in this deck 1. Forrester s Enterprise And SMB Software Survey, North America And Europe, Q4 2008/9(2227/2165 total 1114/940 for Development) Primarily Directors, VP App Dev, VP I&O, CIO 2. Forrester Dr. Dobbs Developer Technographics Q3 09 (1298 total) Mostly developers slightly skewed toward systems and.net /2010 Eclipse Community Survey ( 1498 total) Mostly developers skewed toward Java 4
5 Agenda Market Trends And OSS Evolution Examples And Best Practices 5
6 In 2009 integration and innovation were top of mind Thinking of your firm s current planning cycle, how important are each of the following goals? 0% 10%20%30%40%50%60%70%80%90%100% Reduce IT costs Improve integration between apps Use IT to increase innovation Support regulatory reqs. Improve communication of IT value to business Increase ability to meet unmet demands for IT services Address IT staffing and skills challenges??? Expand use of open source software Reducing number of (major) software vendors we work with Expand use of SaaS Move some/more apps to off premise providers 1-Not at all important Very important Don't know Base: 2227 software decision-makers at North American and European enterprises and SMBs Source: Enterprise And SMB Software Survey, North America And Europe, Q Forrester Research, Inc. Reproduction Prohibited
7 Adopting OSS was an important technology goal OSS Business Process Management(BPM) Mobile tools/middleware What are your firm s plans to implement or expand its use of the following software technologies in the next 12 months?? Advanced analytics 0% 50% 100% Expand/ Upgrade existing implmentation Implementing/ Implemented Piloting Data Services/Information as a Service (IaaS) Information Lifecycle Mgmt (ILM) Application Lifecycle Management(ALM) PaaS/Cloud Rules Complex Event Processing(CEP) Enterprise Service Bus (ESB) Interested/ Considering Decreasing Removing Not Interested/ Don't know Base: 2227 software decision-makers at North American and European enterprises and SMBs Source: Enterprise And SMB Software Survey, North America And Europe, Q Forrester Research, Inc. Reproduction Prohibited
8 IT is leaning out for growth at speed in 2010 How important are each of the following business goals to your internal IT organization when making software decisions? 0% 50% 100% Forrester Research, Inc. Reproduction Prohibited Reduce costs Improve business process execution speed Support company growth Improve integration between apps Support regulatory reqs. Be more nimble as the firm change business processes Improve collaboration and information exchange Increase innovation Support our company's sustainability goals 1-Not at all important Very important Don't know Base: 1900 software decision-makers at North American and European enterprises and SMBs Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009
9 Urgency to adopt OSS is fading How important are each of the following business goals to your internal IT organization when making software decisions? 0% 50% 100% Update/modernize key legacy apps Increase deployment/use of collaboration tech Upgrade enterprise apps Reduce number of major vendors we work with Expand use of Agile software dev. Increase use of SaaS/Cloud Increase use of OSS Implement "green" software tools Consolidate or rationalize enterprise apps 1-Not at all important Very important Don't know Base: 1900 software decision-makers at North American and European enterprises and SMBs Source: Enterprise And SMB Software Survey, North America And Europe, Q Forrester Research, Inc. Reproduction Prohibited
10 because it s now widely adopted Which of the OSS infrastructure tools have you included as part of your development activities or deployed an application or software project to? (Select all that apply.) Programming languages (e.g. PHP, Ruby, Python, Java) 57% Operating systems (e.g. Red Hat Linux, Suse, OpenSolaris) Development IDEs (e.g. Eclipse, NetBeans) Databases (e.g. MySQL, PostgreSQL, SQLLite) Web servers or networking components (e.g. Apache, Samba, Radius) Application servers (e.g. JBoss, Glassfish, Tomcat) 28% 48% 46% 45% 45% Application frameworks (e.g. Spring, Rails, Zend) Have not used OSS as part of my development projects 22% 21% Content Management Systems (e.g. Alfresco, Drupal) Business Intelligence tools (e.g. BIRT, Jasper Reports, Spago) Other, please specify Business applications (Sugar CRM, Bravo) 10% 7% 7% 4% Portals or mash-up servers (e.g. Liferay, Dapper) Base: 1,298 development pros at North American and European enterprises and SMBs Source: Forrester -Dr. Dobb s 2009 Developer Technographics Survey, Q Forrester Research, Inc. Reproduction Prohibited
11 and management has caught up to developers Base: 1,298 development pros at North American and European enterprises and SMBs and 1,298 development pros at North American and European enterprises and SMBs Source: Forrester -Dr. Dobb s 2009 Developer Technographics Survey, Q3 2009, Enterprise And SMB Software Survey, North America And Europe, Q Forrester Research, Inc. Reproduction Prohibited Which of the OSS infrastructure tools have you included as part of your development activities or deployed an application or software project to? (Select all that apply.) Programming languages (e.g. PHP, Ruby, Python, Java) Operating systems (e.g. Red Hat Linux, Suse, OpenSolaris) Development IDEs (e.g. Eclipse, NetBeans) Databases (e.g. MySQL, PostgreSQL, SQLLite) Web servers or networking components (e.g. Apache, Application servers (e.g. JBoss, Glassfish, Tomcat) Application frameworks (e.g. Spring, Rails, Zend) Content Management Systems (e.g. Alfresco, Drupal) Business Intelligence tools (e.g. BIRT, Jasper Reports, Spago) Other, please specify Business applications (Sugar CRM, Bravo) Portals or mash-up servers (e.g. Liferay, Dapper) 6% 7% 6% 7% 7% 4% 4% 1 12% 10% 24% 22% 28% 35% 46% 45% 45% 48% 55% 57% 58% 58% 61%
12 OSS adoption by company size Which of the OSS infrastructure tools have you included as part of your development activities or deployed an application or software project to? (Select all that apply.) Programming languages (e.g. PHP, Ruby, Python, Java) Operating systems (e.g. Red Hat Linux, Suse, OpenSolaris) Development IDEs (e.g. Eclipse, NetBeans) 3 60% 68% Databases (e.g. MySQL, PostgreSQL, SQLLite) Web servers or networking components (e.g. Apache, Samba, Radius) Application servers (e.g. JBoss, Glassfish, Tomcat) Application frameworks (e.g. Spring, Rails, Zend) Content Management Systems (e.g. Alfresco, Drupal) Business Intelligence tools (e.g. BIRT, Jasper Reports, Spago) 16% 17% 15% 8% 46% 65% 64% Business applications (Sugar CRM, Bravo) Portals or mash-up servers (e.g. Liferay, Dapper) 11% Base: 1900 software decision-makers at North American and European enterprises and SMBs Source: Enterprise And SMB Software Survey, North America And Europe, Q
13 US adoption is closing the gap with Europe Which of the OSS infrastructure tools have you included as part of your development activities or deployed an application or software project to? (Select all that apply.) Programming languages (e.g. PHP, Ruby, Python, Java) Operating systems (e.g. Red Hat Linux, Suse, OpenSolaris) Development IDEs (e.g. Eclipse, NetBeans) Databases (e.g. MySQL, PostgreSQL, SQLLite) Web servers or networking components (e.g. Apache, Samba, Radius) Application servers (e.g. JBoss, Glassfish, Tomcat) Application frameworks (e.g. Spring, Rails, Zend) Content Management Systems (e.g. Alfresco, Drupal) Business Intelligence tools (e.g. BIRT, Jasper Reports, Spago) 14% 10% 11% 18% 6% 9% 2 30% 36% 41% 60% 66% Business applications (Sugar CRM, Bravo) 6% 12% Portals or mash-up servers (e.g. Liferay, 4% Dapper) 8% Base: 1900 software decision-makers at North American and European enterprises and SMBs Source: Enterprise And SMB Software Survey, North America And Europe, Q % 56% % 71% UK Canada US Germany France 13
14 Telco, MEL & Fin Svc lead industry adoption Which of the OSS infrastructure tools have you included as part of your development activities or deployed an application or software project to? (Select all that apply.) Programming languages (e.g. PHP, Ruby, Python, Java) Operating systems (e.g. Red Hat Linux, Suse, OpenSolaris) Development IDEs (e.g. Eclipse, NetBeans) Databases (e.g. MySQL, PostgreSQL, SQLLite) Web servers or networking components (e.g. Apache, Samba, Radius) Application servers (e.g. JBoss, Glassfish, Tomcat) Application frameworks (e.g. Spring, Rails, Zend) Content Management Systems (e.g. Alfresco, Drupal) Business Intelligence tools (e.g. BIRT, Jasper Reports, Spago) Business applications (Sugar CRM, Bravo) Portals or mash-up servers (e.g. Liferay, Dapper) 8% % 20% 41% 44% 50% 70% 76% 71% 7 Retail/Wholesale Manufacturing Business Svc/Const. Public Sector/Govt. Fin Svcs. Media, Ent. Leisure Utilties/Telco Base: 1900 software decision-makers at North American and European enterprises and SMBs Source: Enterprise And SMB Software Survey, North America And Europe, Q
15 At the operating system level - development What is the primary operating system you use for development (Choose one) Windows Mac OSX Linux-Ubuntu Linux-Fedora Linux-SUSE Linux-Debian Linux-RHEL Linux-Other Solaris Other 7% 7% 5% 4% 2% 2% 1% 1% 2% 5% 2% 1% 1% 0% 1% 1% 4% 14% 17% 54% Eclipse % Eclipse % Dr. Dobbs 16% 62% 71% 5% Base: Base: 1481 application development professionals, 1948 application development professionals, 1298 application development professional Eclipse Eclipse Dr. Dobbs 15 Source: 2009 Eclipse Community Survey, Q2 2009, 2010 Eclipse Community Survey, Q2 2010, Dr. Dobbs Developer Technographics Q3,2009
16 At the operating system level - deployment What is the primary operating system you use for deployment (Choose one) Windows Mac OSX Linux-Ubuntu Linux-Fedora Linux-SUSE Linux-Debian Linux-RHEL Linux-Other Solaris Other 2% 1% 4% 2% 5% 4% 2% 1% 6% 8% 5% 5% 5% 5% 4% 9% 8% 9% 11% 11% 37% 36% Eclipse % Eclipse % Dr. Dobbs 2 57% 9% 7% 11% Base: Base: 1481 application development professionals, 1948 application development professionals, 1298 application development professional Eclipse Eclipse Dr. Dobbs 16 Source: 2009 Eclipse Community Survey, Q2 2009, 2010 Eclipse Community Survey, Q2 2010, Dr. Dobbs Developer Technographics Q3,2009
17 At the app server level What is the primary app server you typically use for deployed applications? (Choose one.) Apache Tomcat Red Hat JBoss IBM Websphere Oracle Weblogic 17 Sun Glassfish Jetty Oracle AS SAP Netweaver None Don't Know Other 0% 1% 1% 1% 5% 4% 2% 5% 7% 6% 9% *Source: 2010 Eclipse Community Survey Source: Forrester -Dr. Dobbs 2009 Developer Technographics, Q % 14% 20% 27% 30% 29% Eclipse* Dr. Dobbs *Base: 1948 app dev professionals building server apps and programming in Java Base: 218 app dev professionals building server apps and programming in Java at least 50% of the time
18 At the DBMS level What is the primary app server you typically use for deployed applications? (Choose one.) MySQL 15% 28% Oracle 19% 17% SQLServer 7% 32% PostgreSQL DB2 5% 4% 4% 10% Eclipse* Dr. Dobbs Sybase 1% 2% None 1 18% Other 6% 7% 18 *Base: 1948 app dev professionals building server apps and programming in Java Base: 218 app dev professionals building server apps and programming in Java at least 50% of the time *Source: 2010 Eclipse Community Survey Source: Forrester -Dr. Dobbs 2009 Developer Technographics, Q3 2009
19 At the SCM level What is the primary SCM system you typically use? (Choose one.) Subversion CVS Microsoft VSS IBM Rational ClearCase Microsoft TFS Perforce Git/GitHub Mercurial None Don't Know Other 11% 1 1% 12% 6% 1% 9% 5% 6% 2% 1% 5% 8% 1% 0% 1 32% 52% Eclipse* Dr. Dobbs 19 *Base: 1,948 application development professionals Base: 1,298 application development professionals *Source: 2009 Eclipse Community Survey Source: Forrester -Dr. Dobb s 2009 Developer Technographics, Q3 2009
20 Why developers drive adoption of OSS 1. Cost 2. Speed 3. Integration The software iron triangle 20 Source: February 2, 2009, Best Practices: Improve Development Effectiveness Through Strategic Adoption Of Open Sou Forrester report
21 Why developers drive adoption of OSS 1. Cost 2. Speed 3. Integration The software iron triangle 21 Source: February 2, 2009, Best Practices: Improve Development Effectiveness Through Strategic Adoption Of Open Sou Forrester report
22 Adoption paths are shifting toward devs Developers resist technology that doesn t meet their needs CIO Traditional financial controls are of limited value EA PMO AD I&O LOBs defends dev teams that produce value Management is willing to yield when a win-win results The path from developer to customer is getting shorter Developer productivity is no longer the problem BAs Arch Dev QA More than ever: Developers can block or significantly aid the adoption of software! 22
23 A shift in decision makers affects adoption Revenue Skimmers Executives IBM, Oracle, SAP, and HP But executives are starting to reassert control! Who s in charge? Developers Microsoft Penetrators Red Hat, Atlassian, SpringSource, and Adobe Time 23
24 What it means Economic uncertainty and cost reduction was driving OSS adoption, now were shifting toward speed and innovation Continental Europeans lead in adoption but the US is catching up Very small and very large organizations have more time than money As OSS business models evolve, concerns over viability and IP are receding Developer adoption of Linux continues to trend upward, and a focus on UX pays off The enterprise software market and the OSS market are set for an inevitable collision, and then a convergence To win you must drive adoption and affirmation through developers, and purchases through management 24
25 Agenda Market Trends And OSS Evolution Examples And Best Practices 25
26 26 Case Study 1: Leading fin services firm Provides asset management, investment banking, private banking, treasury and securities, and commercial banking. Using Linux since 2001, OSS now moving up the stack. Using OSS app server keeps big ISVs honest. Need good developers not average ones. Used OSS as an opportunity to refashion dev processes. Now looking at BI, using a lot of Spring Need to manage the support fear factor Dev community very happy, I&O is mixed Result: Per project software costs savings range from 30% to 80%. For every $10 they put in, they get $4 back.
27 Case Study 2: Global fin services firm Market leader in securities, asset management and credit services Replacing proprietary ECM with Alfresco in production since 2007 Extensibility and flexibility due to OSS and APIs First major firm to do Linux as a strategic play Still evaluate commercial option but license costs are increasingly untenable Have created their own fork, and work with Alfresco to manage change delivery back to trunk Result: Reduced upgrade costs compared to commercial solutions by high 6 figures 27
28 Case Study 3: Sabre Leading provider of technology and marketing services for the travel industry Rewrote z-based reservation app using scale-out arch with Linux, Tomcat, FUSE now running at peak volumes on 6 M tpd Need to make investments in architectural competency Acquisition policy OS first, buy next, build last. Took three tries to get it right Anticipate higher costs of training, risks of proliferation Always buy support Result: Saving millions over multiple years vs. mainframe environment. 28
29 Case Study 4: Landmark Graphics Landmark Graphics supplies software to Oil and Gas industry across a broad variety of application areas OSS Steward monitors policy compliance Prioritize standardization Restructured release process Use BDS to monitor compliance PM assumes responsibility for OSS Remediate if/as violations are found Contributing back in limited cases Result: Rapid adoption of the latest models and technologies, with accurate identification of OSS dependencies 29
30 Case Study 5: Reliant Security Reliant sells PCI compliant in-store systems that include many OSS subsystems. Set a clear policy for OSS use Tuned acquisition policies 30 OSS first mandate Prioritized ilities Loosely coupled design Adjusted dev processes OSS use identified at design Developer on the hook for provenance Result: Significant customer savings (7 figures in large deployments) over commercial alternatives
31 Case Study 6: European Airline Global carrier created by merger of two large carriers Set a goal for tactical cost savings in operations Replaced Solaris and AIX as base OS supporting SAP Rolled out a combined SAP implementation on Linux Result: Savings of close to E 1 million. 31
32 10 Best Practices From Enterprise OSS Adopters 1. Appoint an OSS steward 2. Create a comprehensible policy 3. Frontload acquisition processes 4. Require project leaders to identify OSS dependencies 5. Use EA to regulate exploitation and maintenance 6. Trust teams - but verify with code-scanning utilities 7. Maintain a repository of preapproved OSS components 8. Don't dwell on processes and artifacts; focus on outcomes 9. Don't expect perfection, and plan for remediation 10. Set a contribution policy it will happen over time anyway 32
33 Companies may be slow to contribute, but not devs Please select any statements that describe you as a developer. (Select all that apply.) Engaged in developing on 1 or more side projects outside business 60% Attend local user group meetings 39% Published 1 or more articles about software dev Contributor to 1 or more OSS projects Hold 1 or more patents Recognized by 1 or more ISV programs Written 1 or more books 21% 20% 15% 12% 5% Base: 914 development pros at North American and European enterprises and SMBs Source: Forrester -Dr. Dobb s 2009 Developer Technographics Survey, Q Forrester Research, Inc. Reproduction Prohibited
34 What it means Looking ahead Open source adoption is moving from don t ask, don t tell into a period of strategic adoption Business critical OSS systems exist; they work and they scale IT is still learning about different OSS business models help them understand It s time to focus on the secondary virtues of OSS, speed, flexibility and engagement Most companies aren t averse to paying for value fairly delivered Contributions from IT developers are coming, but not through official channels need to work to assuage their concerns over risk It s not really about the Cathedral OR the Bazaar it s more about a mixed source combination 34
35 Thank you Jeffrey Hammond Twitter: jhammond Forrester Research, Inc. Reproduction Prohibited
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