Open Source Software for the Enterprise

There is no shortage of great ideas floating around right now. Unfortunately, as much value as we like to put on our good ideas, failure to execute on them means they turn out to be little more than dreams with practical application but no realization.

However, over the past few years, the open source movement has gained tremendous ground in it’s battle for broad acceptance and reliability. I would dare say, open source is coming of age. The broad use of LAMP (Linux, Apache, MySQL and PHP) to build still more open source applications is eclipsed only by the applications built on that framework. Of course WordPress and Firefox immediately come to mind but the number of open source projects abounds.

The open source platform enablers such as Apache and Linux have enjoyed wide use in the enterprise for some time but the applications built on them have struggled to gain acceptance in those same businesses though for good reason. Most of them simply weren’t ready for prime time. But that’s changing and quickly so. With applications such as MySQL driving more and more databases, and WordPress running some large and complex websites, businesses are starting to realize the benefits of using free, open source applications and are finding out how reliable they can be. More importantly, the age and durability of those applications means there is also a growing talent pool of professionals capable of supporting them.

The idea is, that out of this movement a few things will happen.

1. Incumbent, non-open source giants will begin to be displaced for basic service offerings (think Apache instead of IIS).
2. New businesses will grow on the backs of open source applications, and not just new products, but services companies as well
3. Open source technologies could eventually rival complex enterprise applications.

Number 2 is exactly why I started BlackBox Technologies. A lot of businesses are using open source applications and need expertise to support them and help them get up and running or to maintain those applications. Also, a lot of small businesses and individuals can now afford powerful, scalable, flexible websites because they can be built by professionals at a relatively low cost without incurring software licensing fees, now or ever.

But, number 3 is what intrigues me the most and is where I hope BlackBox will go, eventually, even if only in part. The open source movement has proven that it is capable of building applications that can operate effectively at the enterprise level. When coupled with a subject matter expert in a particular discipline such as law, real estate, corporate governance, etc… the technical minds that contribute en masse to open source projects will have an opportunity to compete or displace incumbent software providers.

There will be concerns about security, reliability, support … all of which are quite valid to the enterprise, and all of which can be addressed and mitigated. Early adoption would likely begin at a snails pace, but there is a very viable opportunity with a fortune waiting to be made from the services associated with those applications (see #2). At the same time the cost savings to large companies would be quite literally billions per year.

There are some applications which don’t lend themself to a services oriented revenue stream and will always cost money, and quite frankly, that is ok. People deserve to make money for their hard work and some apps will demand a premium, but the opportunity abounds for those willing to start the ball rolling now on the open source revolution for the enterprise.

PS: Just as I was finishing writing this I caught wind of a website that is at the grassroots level of just such a project. Slipfire is a start-up, open source project aimed at developing a CRM (Customer Relationship Mangement) application on the WordPress platform. If you are inclined to help an open source application out this might be a good one to get involved with. I don’t know much more about it but I’ll be keeping a close eye on where this goes.

Alternatives to Help Lower the Cost Of Starting Up

Like many entrepreneurs, I have in the past made the mistake of racking up expenses before I was actually executing my business because I thought I needed those things in order to make my business work. It takes money to make money right? Well, that old saying is really only true in it’s literal interpretation. It will cost you money to incorporate, host your website, … but there are many areas where spending has become less necessary than in the past.

Communications:
Mobile phone plans are cheaper than ever and many include long distance, data and other services. Some will even give you access to wifi hotspots. I personally have not had a home phone since 1998, long before most people gave them up for only having cell phones. After the first six months of that year I realized I never used it and was spending $50-60 a month for nothing. Ditch it if you can, but if you really need a separate line, go with a VoIP service provider like Vonage.

Cable, Fiber or DSL? Whatever you chose, you’ll need net access. If you can get fiber great but unless you are in a bandwidth intensive biz, you probably don’t need it right now. Cable is better than DSL in my opinion but if you opt for DSL, don’t let the phone company convince you that you have to have an active landline for it to work, you don’t (I used to work in Telecom and know better and now you do too). You need wires there yes, but not landline service.

Technology:
Microsoft Office is a great suite of tools but it’s not necessary. Open Office or just using Google Docs can be a great alternative and both are free. I haven’t used Open Office in a while but the only down side to using Google Docs will become obvious if you do really heavy spreadsheets with lots of drop-down lists, pivot tables and other dynamic functionality. If you don’t, and that is 99% of you, then Google or Open Office are a great way to save hundreds of dollars and not worry about loosing data if your computer crashes.

Need an extra computer, consider installing Ubuntu in stead of Windows. it’s the most user friendly Linux version ever and if the majority of use for that computer happens through a web browser, all the better, it’s fast, secure and free.

Here are a few other ideas for you:
1) Buy new technology or other assets when you need them, not in advance because you expect you’ll need them later.

2) Be prepared to trade services with people when you can but expect that some will still simply want to be paid for their work and eventually you’ll want the trade thing to all but go away. still, in the early stages it can save money and you might build a great partnership.

3) Shop around, for everything.

4) Don’t go cheap on things you really need or that are core to you doing business. Spend where you need to, not where you don’t.

Starting a business is fun but expenses can run away if you aren’t careful and that first big bill will show up before the first revenue and strip the fun out if it very quickly. Starting a business isn’t an excuse to go on a shopping spree just because you can write some or all of it off.