A Survey of Free and Open Source Business Software

This blog is sponsored by Fred Blauer and Associates

Background

After implementing many mid level ERP software systems for businesses in different industries, I found myself working on Systems Audit and Sarbanes, Oxley compliance projects for a number of years. When I returned to this space, after my mandates were completed, I decided to investigate and see if the open source development model had infiltrated into the business application areas like accounting, ERP, vertical and horizontal markets, and other business areas like productivity etc. I found that Open Office was dominant in the productivity class, but most of the other areas were fragmented and had a lot of players. I started my research by looking for a short list or “best of breed” in each area that I could spend some time installing and evaluating. There were too many alternatives to look at everything. I created a data base, and classified systems into small, medium, and large, and then by industry or type of product. One of the most important criteria for selection was the strength of the community behind the product, support and commercial backing.
I found some very interesting programs in the accounting and ERP space, and also for various industry sectors like manufacturing, distribution and wholesale, Retail/POS, Non-profit, Services, Real Estate etc. There were also a lot of good ones in the domains of Business intelligence, Human resources, eCommerce, CRM, Workflow, budgeting, Integration tools etc.

Linux and Opensource to dominate the world?

I have always been a big linux guy, (especially on servers).

Most people don’t seem to realize that Android IS Linux. I don’t have to explain how they have taken over the smart phone market, (certainly in terms of market share at around 75% worldwide, last time I checked). For people who aren’t aware, Linux is an OS kernel with a GUI (also known as a distro) wrapped around it (of which there are many choices).

My personal favourite is Ubuntu. (They seem to have the most interesting strategy and best potential to take over everything):

http://thevarguy.com/mobile-device-management-software-solutions/ubuntu-vs-android-tablets-smartphones-canonicals-secret-

http://www.techrepublic.com/blog/10things/10-reasons-why-canonical-and-ubuntu-will-connect-the-masses-with-linux/3716

http://www.sidhtech.com/news/samsung-galaxy-s4-ubuntu/1004351/

I think Ubuntu has the best chance of taking linux to the mainstream desktop, which seems to be the only area where Linux doesn’t already dominate. The PC certainly is the most visible device, but not necessarily the most important, since any decent modern application should be platform independent  allowing you to chose. It is only the old legacy apps which force you to chose a proprietary operating system platform, but this will eventually go away as applications move to modern platforms (like web based, html5, javascript etc). If your old apps lock you in, its time to move on anyways. There are lots of great alternatives. 

Linux has already quietly conquered the mobile phone, and the server market. Next are tablets and then eventually the desktop.

They will also be running the car industry:

http://automotive.linuxfoundation.org/

and the cloud, which is increasing in importance:

http://www.openstack.org/

(This is the next generation operating system for the cloud)

Nothing short of world domination, as afar as I am concerned.

Open Source ERP xTuple Awarded “NextGen” Status at SIIA’s All About the Cloud Conference

Software Industry’s principal trade association embraces open source and adds xTuple Enterprise Resource Planning to prestigious “Top Ten” list of 2013 Innovators

NORFOLK, VA – April 30, 2013 – The Software & Information Industry Association (SIIA) selects xTuple, fast recognized as the world’s #1 open source ERP, as one of the 2013 “Top Ten” most innovative companies transforming the software and services industry.

All ten of the 2013 SIIA NextGen companies participate in a special showcase, the All About the Cloud conference. Marc O’Brien, Vice President of Business Development, will accept xTuple’s award and sit on the “Next Generation of Cloud” panel at the event. All About the Cloud – the software industry’s most comprehensive independent software vendor (ISV) conference – will be held May 7-9 in San Francisco, California.

“The goal of All About the Cloud, and of our NextGen Program, is to spotlight emerging trends, best practices and innovation in the marketplace,” said Rhianna Collier, Vice President of the SIIA Software Division. “The NextGen companies we’ve selected represent the next step in the evolution of technology. All About the Cloud attendees will get a glimpse at cutting edge technologies, as well as opportunities for investment and strategic partnerships with these innovative businesses.”

Much of the discussion about market disruption has focused on large, brand name businesses, but there is tremendous innovation taking place “under the radar” with smaller companies. NextGen companies – chosen by a Selection Committee comprised of mergers and acquisitions (M&A), venture capitalists (VC) and advisory executives – are young businesses that offer innovative software and services.

We appreciate the ‘innovation’ recognition by SIIA and are very comfortable playing the role of disruptor in a market that has, frankly, drifted away from product quality and customer satisfaction,” said xTuple CEO Ned Lilly. “As a young, self-funded, profitable software vendor in a space dominated by multi-billion-dollar giants, we’re obviously an extreme case of David and Goliath. And this is where open source has helped xTuple to differentiate ourselves.”

“Open source is simply a better way of making a product; the product just happens to be software,” added Lilly. “And commercial open source companies will continue to reap the rewards of a market evolution that rewards quality, transparency and clear alignment of value between software vendors and their customers.” Read the complete SIIA interview with xTuple CEO Ned Lilly.

In addition to xTuple ERP, the 2013 SIIA All About the Cloud NextGen companies are as follows:

Armor5 Inc. solves challenging security and compliance problems in enterprise today – migration of corporate assets from intranet to cloud and increased use of Bring Your Own Device (BYOD) into the workplace.

Appnomic Systems provides preventive IT performance management and automation solutions enabling operations to avoid major IT incidents, improve mean time to repair, increase IT staff productivity, and achieve new levels of compliance.

DICOM Grid provides cloud-based medical image exchange, transforming the way healthcare systems worldwide share, manage, and store medical images, solving a critical challenge in diagnostic imaging.

GoSpotCheck provides a mobile solution for retail companies to help improve their field reporting and intelligence to get real-time and structured data from the field, improving the processes and understanding of their operations.

Integrate’s AdHQ offers marketers an end-to-end solution that supports the entire lifecycle of paid media campaigns in one intuitive dashboard.

PlaceIQ is a leading provider of location intelligence, enabling advertisers to reach and define mobile brand audiences at scale for a wide range of marketing activities.

Shopping Cart Elite is a sophisticated shopping cart for online retailers that will completely automate the business into one complete turnkey package.

Techcello is a ready to use application development framework stack for ISVs, new SaaS Product companies, large multi-national enterprises, BPOs, HROs and KPOs to build .NET solutions with a configurable multi-tenant architecture that can be scaled on a Private or Public Cloud.

VoloMetrix’s Social Enterprise Intelligence application applies privacy filters and then analyzes anonymous, real-time information from corporate email, calendar, instant messaging, and social platforms to provide deep actionable insights into the ways teams are spending their time on the most important business priorities.

The 2013 SIIA NextGen Selection Committee included: Mary Beth Borgwing, Founder, Standish Risk Management; Rhianna Collier, Vice President, Software Division, SIIA; Richard Dym, CEO, Bondi Group; Donna Ewart, Chief Executive, Partner, IBM Venture Capital Group, IBM; Heather Gates-Massoudi, Managing Director, Emerging Growth Company Practice, Deloitte; Edy Liongosori, Global Director of Research, Technology Labs, Accenture; and Susan Mason, Founder & General Partner, Aligned Partners.

Tweet: #ERP news: @xTuple #opensource awarded NextGen status via @SIIASoftwarehttp://www.xtuple.com/press/nextgen-2013 #AATC13

Tweet: #ERP news: Join @xTuple for Next-Generation-of-Cloud panel @SIIASoftware #AATC13http://www.xtuple.com/press/nextgen-2013

Tweet: #ERP news: @xTuple recognized as Top Ten Innovator by @SIIASoftwarehttp://www.xtuple.com/press/nextgen-2013 #AATC13

About SIIA
The Software & Information Industry Association (SIIA) is the principal trade association for the software and digital content industry. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to more than 700 leading software and information companies who are setting the pace for the digital age.The SIIA Software Division provides a forum for companies developing the applications, services, infrastructure and tools that are driving the software and services industry forward. For further information, visit www.siia.net/software. Find out more at All About the Cloud.

SIIA Communications Contact: Laura Greenback, 202.789.4461, lgreenback@siia.net

About xTuple — World’s #1 Open Source ERP
xTuple business management software gives growing companies control over operations and profitability. xTuple integrates all critical functional areas in one modular system: sales, accounting and operations — including customer and supplier management, inventory control, manufacturing and distribution — the powerful tools to Grow Your World®.

As a commercial open source company, xTuple works with a global community of tens of thousands of professional users. xTuple gives customers the ability to tailor solutions with multi-platform support for Windows, Mac, Linux and mobile as well as flexible licensing and pricing options. Connect with the company at www.xTuple.com, with the open source community at www.xTuple.org, and join the innovation conversation at Next Business Blog.

xTuple Supports Innovation
From blueprints to buildouts, xTuple helps foster startups in the heart of the Mid-Atlantic technology corridor between Research Triangle, North Carolina, and Washington, D.C. As a committed, passionate member of the Norfolk/Virginia Beach tech community, xTuple is a financial sponsor and mentor at accelerator HatchNorfolk.com, the StartNorfolk.com business-building weekend and other events where entrepreneurs showcase their ideas. Learn more atxTuple TechMeetups.

 

Open source is taking over the software world, survey says

From PC World Magazine:

Katherine Noyes@noyesk

• Apr 17, 2013

It’s been only a few weeks since the Linux Foundation released its report that enterprise use of Linux continues to rise, but on Wednesday fresh data came out that suggests the same is true of open source software in general.

Specifically, Black Duck Software and North Bridge Venture Partners today announced the results of the seventh annual Future of Open Source Survey, which found that open source software has matured to such an extent that it now influences everything from innovation to collaboration among competitors to hiring practices.

“It’s been recognized that software is eating the world,” said Michael Skok, general partner at North Bridge Venture Partners. “Our survey points to the fact that open source is eating the software world.”

With more than 800 respondents from both vendor and non-vendor communities, the 2013 survey reflects the views of the largest sample in its history. It polled respondents about open source trends and opportunities, key drivers of open source adoption, community engagement, and the business problems open source will solve now and in the future.

BLACK DUCK AND NORTH BRIDGE

Executives are increasingly willing to work with open source communities to spur innovation.

Cost falls to the background

Particularly striking about the results of this year’s survey is the shift they reveal in why users choose open source software over proprietary alternatives.

Traditionally, it’s been common to view price as a motivating factor, since open source software is often free. Last year, freedom from vendor lock-in was cited as the the primary goal.

This year, however, freedom from lock-in dropped to No. 2, while quality, which was in third place last year, was named the most important factor behind open source adoption. The availability of vendor support, meanwhile, is now a point of much less concern than it used to be.

BLACK DUCK AND NORTH BRIDGE

Quality has emerged as the top motivating factor behind open source adoption.

Lower costs, big data, and systems integration are the top three business problems open source is solving, the report found. Sectors leading open source adoption includegovernment, media and healthcare.

‘We can expect more disruption’

Open source software is now driving change from the bottom up, thanks in large part to executives’ new willingness to work with active communities to influence projects and spur innovation, the survey found.

In fact, 61 percent of respondents said they see innovation as leading the technology industry forward, while 48 percent named collaborative partnerships. A full 57 percent of respondents said their companies will collaborate with competitors in industry-specific communities over the next three years.

“Increasingly, enterprises see [open source software] as leading innovation, delivering higher quality, and driving growth rather than being just a free or low-cost alternative,” Skok noted. “Going forward, we can expect more disruption from open source, new business models, and many more exciting new projects and companies.”

A summary of the report is available on Slideshare.net.

The Internet of Things and Open Source

Inevitable.  Inextricable.  Imminent.

Greeting Netizens.  Since you are reading this blog, you obviously belong to the “Internet of Persons,” a growing global population of 2.5 billion of your fellow human beings.   But as sentient surfers, you are not alone.  Joining you on the internet is a far more vast and increasingly ubiquitous army of connected objects, of variously autonomous devices, in a word, of “Things.”  Billions and billions of them, forming the Internet of Things (IoT).

Look around your office, your home or your school.  The most obvious networked Things are your phone, tablet and computer.  Next you will encounter computer peripherals, home entertainment devices and increasingly, your car.  But don’t stop there.  Investments in smart energy bring your thermostat, HVAC, pool and spa heaters, electrical plugs and light switches, even individual light bulbs and sockets onto the IoT.  At clinics and hospitals and in homes, connected Things encompass diagnostic equipment, patient monitors, surgical and pharmacy robots, drip machines and other apparatuses of modern medicine.  The same goes for manufacturing, food production and processing, arts and entertainment, sports (think NASCAR cams and smart hockey pucks).  Ditto for practically every aspect of human endeavor.

Read more

xTuple ERP + OrangeHRM: Open source software leaders integration

xTupler #29: Kicking into high gear

Greetings from Norfolk, Virginia, where spring is finally emerging!   You may have already heard, thanks to the overwhelming support from our community, that xTuple PostBooks was voted “Project of the Month” on the SourceForge open source portal. It was a tremendous honor for all of us, and we share the accolade with all of you.   So we started thinking about more ways we could engage with you to make sure this software is meeting your needs. Most major development on all xTuple ERP Editions today happens as a result of someone’s great need that spurs them to action, i.e., writing an enhancement themselves or working with us, or one of our Partners, to do so. We do not add new features for the sake of adding new features – that would be arbitrary and out of touch with the user base, a primary reason for the bloat we see in commercial software.   That is not to say we view xTuple as 100% feature-complete. While we believe the software meets or exceeds the capabilities of any modern ERP product in the mid-market, there are a number of small areas where we could do better. And we’ve been brainstorming ways to build that list, hopefully with the help of as much of our community as possible.   Then, fate intervened. I blogged recently about my friend who usedKickstarter to crowd-fund a new movie based on a TV show he produced several years ago. The response was amazing! As of this writing, over 64,000 people contributed, raising more than twice the amount of money they expected. Now, the “Veronica Mars” movie is interesting to people in a different way than ERP software – but it still seemed as if there was an idea there. So we asked for your feedback on missing features you’d like to see in xTuple PostBooks. And, did you respond! Over 50 detailed suggestions, which we are reviewing over the next few weeks.   What’s next with Kickstarter? We will condense the requests into a comprehensive list, one which is do-able in a relatively short period of time, and affix a cost to the work. Then, we will launch our own Kickstarter campaign, and just do it! In addition to great enhancements added to PostBooks (and yes, all of this will go to the free core product, not one of the commercial add-ons), contributors enjoy terrific “rewards” at certain levels.  Stay tuned, we’ll be in touch soon with all the details!   Finally, one more exciting bit of community news to share. Many of you have asked if we ever planned to expand xTuple into the area of Human Resources Management (HRM). It’s not a core competency of ours, but we certainly recognize the need and importance of these systems – and particularly the value in having HRM information available in your ERP system. I’m pleased to say we’ve partnered with the global leader in open source human resources software, OrangeHRM. We are already using the integrated OrangeHRM solution internally here at xTuple and will be rolling out to our respective communities in the weeks and months ahead. If you’d like to be one of the first to try OrangeHRM with xTuple ERP, please contact us today.   Thanks again for your support of the world’s #1 open source ERP, Ned Lilly President and CEO
Where’s Wally? xWD Distribution Tip Off in Chicago xTuple VP Sales Wally Tonra   Wally heads to the big game with Account Executive Stacey Pandeloglou and Software Engineer Tom Atkins. That game is the IMARK Showcase, an annual marketing conference and trade show that gives the group’s Wholesale Distribution members an inside track on the latest products.   Distributors have three problems: items, items and items.   There are just too many items available and/or needed for one distributor to carry them all; it’s a management nightmare.   To the rescue is xWD, the xTuple add-on package for Wholesale Distribution, making its industry debut at the 2013 IMARK Showcase this April. It extends xTuple ERP software’s enterprise-class functionality for companies with sophisticated inventory control needs, thanks to development enhancements led by close collaboration with IMARK members.   One feature of xTuple’s xWD is the External Vendor Catalog which gives access – via a company such as Trade Service Integrated Products – to every offering for immediate sales fulfillment and generation of a corresponding purchase order.   One of the primary motivations for the development of xWD was the integration of Trade Service with xTuple ERP. Established in 1931, subscription-based Trade Service, headquartered in San Diego, California (USA), serves a wide variety of distribution-heavy industries, such as electrical; plumbing; heating, ventilation, air conditioning and refrigeration (HVAC/R); pipes, valves and fittings (PVF); industrial; office products; and automotive. Trade Service is a content solution for these industries helping them effectively merchandise non-stock products (which could number in the millions of items) by providing standardized price updating services, catalog content and product reference publications. Today the Trade Service customer base includes approximately 20,000 contractors and 12,000 distributors in the U.S. and Canada. Learn more about xTuple solutions for Distribution. xTuple’s First Day of Spring: New Sign at Headquarters This year the first day of Spring, metaphorically a sign of new life, brought xTuple HQ a new sign of a different kind.   Delivery of the first of two LED-lighted signs caused a buzz of activity in downtown Norfolk, Virginia, thanks to xTuple ERP customer, sign manufacturer Blair Companies of Altoona, PA. The first new sign lights up the Bute Street entrance with the xTuple logo in channel letters mounted on a custom raceway matching the building’s exterior.   As an ode to our software development team and our global community of coders, the xTuple marketing department – with Blair’s help – designed angle brackets to replace the 1940s era lighted sconces that originally graced each side of the entrance.   You can see the entire (amazing!) installation and other pictures at thexTuple Photo Gallery.
Thanks for voting!    Our global community of satisfied customers and developers drove xTuple to enjoy a resounding victory for its enterprise resource planning software solution. Read more on xTuple’s win as SourceForge’s Project of the Month. Watch your step!  By Adam Alphin, Industries United   xTuple floor mat at the front door! Did you know about disabling slips and falls in the U.S….? 9 million cases annually $20,953 average cost per claim $50,000 average cost to defend a lawsuit 28% of workers miss work 31+ days of work on average are missed Those are big numbers for any business, let alone a small or mid-sized company. One of the best ways to avoid these risks is a proper facility mat system. Other great value-adds for a mat system include elevating your company’s image through overall cleanliness and saving money on the wear and tear of your existing floors. Our new partner, Cintas, is the America’s leader in providing such a system. If you want to find out more about their floor cleaning solutions, download their full report and Safe Floors Brochure. Grab a discount, courtesy of xTuple, too.   xTupleR Staffer Feature  Mike O’Donnell, Software Engineer Joining xTuple in July 2012 after a college internship the previous summer, Mike is primarily focused on Mobile Web application development. “I like the challenges I’m presented with – every day is a new puzzle, something new to figure out. But my absolute favorite thing about xTuple is that I get to work with such awesome people.  Everyone is really fun and friendly and it’s a really positive environment,” said Mike. Mike discusses Mobile Web with VP John Rogelstad on Halloween (yes, that’s a Cowboy & a Zombie) Mike graduated from Virginia’s James Madison University with a B.S. in computer science in May 2012. He got into technology as a kid “because my dad was a coder, and I wanted to be him.” A guitarist in his spare time, Mike lives in his hometown of Virginia Beach, Virginia.   Dev-holiday celebration Winter 2012
xTuple Partner Feature:  Compusolv Data Management Consultants, Inc.   xTuple Partner shares better option for ERP resellers Compusolv DMC, Inc., in business in Northern Ohio-Pittsburgh (USA) since 1986, is heavily devoted to software customization to give customers exactly what they want. President Randy Saler joined xTuple as an Authorized Consultant in 2012, as he tells us, for that very reason, to leverage open source technology to give his customers not only what they want, but also what they need.   At a recent corporate training event, Randy expressed dismay that other large legacy software vendors required many third party applications, and xTuple ERP would delight his customers with the same functionality built-in. Excited to join the team at xTuple, Randy  shared the importance of a software being nimble and flexible. Direct video link. xTuple Customer Corner: Distributor – One Pack, LLC    Unbelievable support forum on xTuple.org, says NJ Distributor One Pack LLC   George Kolbeck works for New Jersey (USA)-based xTuple customer One Pack, LLC, distributors of packaging supplies, janitorial supplies and warehouse equipment.   One Pack decided to use xTuple for the open source advantages (such as ease of use), and they love us for the unbelievable community support.   “I’ve had a few surprises with xTuple. It’s done things that I didn’t even think would be eligible to be tracked,” said George.   See the One Pack, LLC, video [direct video link].  Contact us now and share your story as a featured xTuple Customer with xTuple’s Marketing Department. Training Class:   May 20-24: Setup, Configuration & Operation || Register Distance Learning Class: June 5-6: Project Management & Implementation Methodologies (PMIM) || Register Learn more about training: xTuple Knowledge Series.   Training: FREE Webinars   April 3: Using xTuple ERP for Service-Based Companies April 17: xTuple for Accountants May 1: Introduction to xTuple ERP May 15: Advanced Tips for Accountants June 5: Using xTuple CRM -Corporate Relationship Management Webinars are held on Wednesdays at 1:15 p.m. Eastern Time (GMT-05:00-US & Canada) or Find Your Time Zone. Each earns you one (1) CPE credit.   Don’t see what you’re looking for? Contact us with your Webinar Topic Request. Remember:  Continuing Professional Education (CPE) credits are available for every training event offered by xTuple, unless otherwise noted, authorized by the National Association of State Boards of Accountancy (NASBA).

Oracle’s Big Miss: The End Of An Enterprise Era?

For decades the enterprise software industry has grown fat on outsized, upfront license fees coupled with ongoing, high-margin maintenance streams. Cracks in the model have threatened  to dismantle the system for years, as reported by The Wall Street Journal back in 2009, with CIOs chafing at paying for low-value, high-cost maintenance.

But if Oracle’s big earnings miss last week is any indication, one of three disappointing quarters over the past two years, the cracks have widened to a chasm. As bellwether for the enterprise software incumbents, Oracle’s miss suggests that the legacy vendors may struggle to adapt to the world of open-source software and Software as a Service (SaaS) and, in particular, the subscription revenue models that drive both.

It isn’t going to be pretty.

Changing How Vendors Get Paid

This isn’t just a matter of improving legacy software products. It’s a matter of fundamentally changing how these legacy vendors deploy and charge for software. For example, Oracle’s entire cost structure is built around the premise of a hefty upfront license and high-margin maintenance (Over 20% of the license fee). Ever read The Innovator’s Dilemma? Clayton Christensen’s classic addresses just this sort of inability for established companies to change. It turns out to be brutally hard, and often impossible.

Small wonder, then, that SAP has been raising its maintenance fees, trying to milk more money from its customer base as it faces serious headwinds maintaining its license modelagainst upstart competitors like Workday:

Such actions basically force customers to start looking elsewhere, if they weren’t already.

If this were just a matter of technology, Oracle, Microsoft et al. would likely weather the storm quite well. Oracle makes great software. There’s a reason it’s the enterprise database leader, and by a wide margin (though smaller rivals are gaining in popularity).

But building great technology is not enough. Oracle’s peers, from SAP to IBM to Microsoft, also charge for software in this way, and across the industry they’ve been taking a beating as enterprises look to the improved productivity and OpEx of open source and SaaS. Oracle, for its part, blamed its miss on “sales execution,” but as Cowen & Co. analyst Peter Goldmacher points out,

…[W]e have a hard time believing that almost all the legacy software names are suffering from poor sales execution at the same time. We believe the primary issue is a fundamental shift in the technology landscape away from legacy systems towards a new breed of better products at a lower cost both in Apps and in Data Management. Virtually every emerging software trend is having a deflationary impact on spend.

Not everyone sees it this way. Wells Fargo senior analyst Jason Maynard urges investors in Oracle to “keep calm and carry on,” and expects Oracle’s license revenue to grow 5% year over year.

Good luck with that.

Developers Rise In Importance

The problem isn’t that Oracle and the mega-vendors have lost their hold on CIO affections. They haven’t. The problem is that they have little to offer enterprise developers, who increasingly are the gateway to software adoption. Explaining this shift in his excellent The New Kingmakers, Redmonk analyst Stephen O’Grady argues:

With the rise of open source…developers could for the first time assemble an infrastructure from the same pieces that industry titans like Google used to build their businesses — only at no cost, without seeking permission from anyone. For the first time, developers could route around traditional procurement with ease. With usage thus effectively decoupled from commercial licensing, patterns of technology adoption began to shift….

Open source is increasingly the default mode of software development….In new market categories, open source is the rule, proprietary software the exception.

The top-down approach, in other words, is losing its currency within the enterprise, as both open source and cloud enable developers (not to mention line of business executives) to get work done without getting permission.

The effect on the mega-vendors is overwhelmingly negative, as Oppenheimer analyst Brian Schwartz posits:

We believe something more secular is occurring as cloud computing increasingly entices CIOs to refresh their legacy IT systems with cloud services rather than infrastructure. Additionally, software purchasing is becoming more decentralized with decision-making power shifting away from IT and weakening the selling advantage as a “one-shop supplier.” These trends dampen big-ticket on-premise software purchasing and remain a headwind for the infrastructure vendors.

None of which means the big vendors are going out of business anytime soon. In my years at Novell, for example, I witnessed a serious decline in the company’s fortunes, even as revenue remained above $1 billion.

Time To Change?

In fact, Novell is a great example of what might happen to the mega-vendors. Ultimately, Novell had to be bought out and then split into pieces in order for its SUSE business unit, now an independent company, to thrive. SUSE can now support its subscription model without all the overhead Novell’s legacy business imposed on it.

The same may well prove true for the other enterprise mega-vendors.

Not all enterprises will be affected equally, of course. Years ago IBM reshaped its business to be more services driven, which allows it to embrace new trends like open source enthusiastically. And even Oracle has built out a considerable cloud business (despite starting years later than it arguably should have), to which it can move current customers. Microsoft has been doing the same, transitioning customers to Office 365 rather than lose out on customers moving to Google Docs.

But the revenue profile for these businesses differs significantly from the traditional license/maintenance business, and it’s an open question whether any of these companies will be able to turn the corner in their current form.

The Wall Street Journal echoed this sentiment, suggesting that Oracle’s “business is being eroded at the edges by smaller, more focused companies offering newer technology,” and, I would add, by the very different business models these firms employ. It’s a great time to be in enterprise technology…so long as you’re not selling a legacy business model.

Business Management Software for Accounting March 20, 2013

xTuple extends ERP with Human Resource Management, partners with open source leader OrangeHRM

OrangeHRM’s million-plus users now benefit from complete integration with accounting, corporate relationship management and enterprise resource planning

NORFOLK, VA – March 22, 2013 – xTuple ERP announces new technology integration partnership with the world’s most popular and most used open source human resource management software, OrangeHRM.

OrangeHRM contains all the essential features that human resource (HR) professionals worldwide need to manage employees effectively.

“xTuple continues to be recognized as the world’s #1 open source ERP solution. The integration and partnership with OrangeHRM’s leading open source HRM solution will benefit our mutual worldwide users. It is another sign of the maturing of the commercial open source ecosystem,” said Marc O’Brien, vice president of business development at xTuple.

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