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 For the First Time in History,
Microsoft has reported a drop in Sales Revenue. So if you are feeling
the pinch of the recession, spare a thought for those that are a few
Billion lighter. What is of interest to us is that Microsoft
Blames it on Open Source. One does not wish ill on any one and
we would all like to live in a world where everyone is making money,
however more than that, we want to live in a free world where
software is unshackled.
The unfortunate reality is that the dropping of revenues of the licences takers - Microsoft, Sage, Intuit - is an inverse relationship to the success of Open Source. Like it or not we are stacked up : Communities of participating users VS Shareholders. Every installation of Open Source bites away a piece of the annuity pie that feeds the shareholders.
There is a dramatic increases in Vendor ownership of Open Source projects . While our industry also requires the use of capital, it is a two edged sword, vendor capital brings with it the obligation of financial returns. Fortunately those of us who have been using Open Source for some time, know that it is the quality and not the price that attracts us. It is the nature of the proprietary model to restrict that access, how else does one get the financial return? It is that quality that comes under threat the moment you introduce the obligation of shareholder payback.
It is ironic that shareholders, a pillar
of capitalism, have become a burden around the neck of our competitors. It is an interesting note about the large accounting companies in our industry that they are not owned by the people that run them, the original company developers have long since sold out, retired or diluted their interest. The dominant proprietary software companies are owned and controlled by investments funds. Their thinking is ruled by yields and cash streams. Sadly the large accounting software companies are an investment play in the the stock market, Software development is something they barely understand. Don't believe me, look at their web sites and mission statements.
The worst for these investors is that in heady times they bought into these revenues streams at premium prices. They were promised extended growth and ever increasing capital values. Noone bothered to notice the quality of the Open Source offering. It gets really difficutl to make super profits when an OPen SOurce competitor is offereing a better product for free. Satisfying the ever more desparate needs of the dividend clippers is
proving to be the biggest downfall of the proprietary companies. The
entrepreneaurial spirit is moving in the the software business from
gatekeepers and accountants to the users.
The Accounting market is a lot quieter
about sales figures, but my investigation into the retail sector
shows that sales of accounting software is down around 50%. This
makes the performance of TurboCASH more exciting. Effectively with
TurboCASH we are maintaining our growth with approximately 1500 new
registrations per month. This is a strong sign that people are
finding the benefit of Open Soucre.
Recessions have a way of
encouraging the adoption of disruptive technologies and this seems to
be working. Some of the proprietary companies have even resorted
to launching “Open Source Divisions”. This is a FUD to try an take on
the value of the Open Source brand. We should regard this as a
complement for the work that we have been doing. We encourage more
companies to market their products under the Open Source system. Open
Source however is not about lip service, where licences continue to be you main focus, it is about a genuine
desire for Software Freedom.
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