Linux red hat

The perfecT sTorm
Why noW is the time for open source

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executive summary conditions for the perfect storm the open source value proposition carving out costs: hoW open source saves businesses money

5 What types of open source solutions are available to help cut costs? 6 7 7 Qualities to look for in an open source vendor conclusion: harnessing the perfect storm about red hatwww.redhat.com

The Perfect Storm: Why now is the time for open source

execuTive summary
These are unprecedented times. The global economy is in free fall, with no geographic region or industry unaffected by the scarcity of capital, market volatility, and reduced consumer spending. Dismal economic indicators reflect business conditions that haven’t been seen for decades. And experts arewarning that we haven’t yet hit bottom. At the same time, IT is under more pressure than ever. There is less capital to invest in new systems at the very moment when companies need to leverage technology to innovate — both to contain costs and to hone competitive advantage. IT managers are being told to lay off personnel and reduce operating expenses, yet are expected to continue providing the samesupport to business users as when fully staffed. But there’s a bright spot amidst the general gloom. Specifically, the value proposition of low-cost, highreturn open source solutions is resonating now more than ever. Although used successfully by leading-edge companies for more than 20 years, some mainstream businesses have remained with their proprietary technology alternatives, either due to vendorlock-in or misconceptions about open source. That is rapidly changing. Today, open source is being increasingly recognized for its ease of use, high performance, and affordability, especially amidst today’s turbulent economic conditions. Indeed, the high value of open source, coupled with economic and organizational pressure, represents a “perfect storm” for CIOs, giving them the opportunity todeploy high-performing, cost-effective open source solutions to carve costs out of their IT infrastructures.

condiTions for The perfecT sTorm
The phrase “perfect storm” comes from the best-selling 1997 book by Sebastian Junger. It has since been used to refer to times when a particular combination of events cumulate in an utterly unique situation — one in which the whole is significantlygreater than the sum of the parts that created it. The IT world is facing such a situation now. First, there is the economy. Every day brings further news of massive layoffs, bankruptcies, and reduced consumer confidence. No industry is exempt. Second, there are the demands being placed on IT. Technology is more critical than ever for enabling businesses to function efficiently and innovate forcompetitive advantage. Yet IT budgets are being slashed to the bone. Given that businesses currently spend 80% of their IT budgets just to keep the business going, according to Forrester Research — and that 30% of that budget goes straight into paying the salaries of employees performing routine maintenance — few businesses have the capital to invest in new hardware or software.

2 www.redhat.comThe Perfect Storm: Why now is the time for open source

But the news isn’t all bad. The third contributing factor to the current perfect storm actually points the way to a solution: open source. In the past considered immature, today’s open source software is reliable, stable, and mature enough to be used to build mission-critical systems at even the most conservative mainstream enterprises.According to a survey of IT and business managers performed in 2008 by CIO.com, 53% of businesses are already using open source, and another 10% plan to deploy open source within the next 12 months. Even more significantly, 44% of all respondents said they compare open source applications headto-head with proprietary solutions during product evaluations. The emergence of open source has created an...