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Open Source Takes Hold in Servers

An increasing number of organization are using open source technology for Enterprise Resource Planning (ERP) and Business Intelligence (BI) solutions. ERP is an industry term for the broad set of activities supported by multi-module application software that help a manufacturer or other business manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders.

The use of source code is not limited to end users. Many software venders, including SAP and Oracle, have begun looking to Linux to drive down the total cost of ownership. IDC analyst Albert Pang says: "There have been so many flawed implementations in the past and people were overspending and missing deadlines with ERP systems," Pang adding. "Open source projects are coming in to reduce the headache associated with building this large infrastructure for an ERP system." Open source ERP solutions will defiantly take a growing market share from traditional software applications in C++ and Java.

Open source is aseptically catered to small to mid-sized businesses due to recent changes in the surrounding business model. Rick Mortensen, CEO of MarvelIt, an open source BI software developer says: "Small- and medium-sized businesses typically ignored ERP and BI implementations because of the high costs," Mortensen told the LinuxInsider. "Now, because of lowered software and support costs, SMBs can afford enterprise type functionality." Open source ERP and BI products also allow for ability to modify source code and community-based maintenance and support, he said. Analysts believe the use of open source is especially beneficial to domains where there is a baseline of generic functionality that applies to a broad range of industries. This domain must also have a community of technology experts willing to participate in the open source process.