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Open Sources | Rodrigues & Urlocker » Adoption or Shareware/Trialware

March 17, 2008 | Comments: (0)

Adoption or Shareware/Trialware

I just got a chance to read Simon & Zack's individual replies to my question whether an Adoption-led market was very different from a Shareware market.

I actually liked Simon's definition, but felt it was missing something about the access to source code and community. To me, these two items are the real enabler of what Simon is describing. With OSS, adoption is driven by the community that builds around an OSS project. This community is generally driven by access to the source code. But at times, it can form around access to an open API around a closed source product (i.e. iPod/iPhone apps).

Please read Simon's original definition, with my modifications in square brackets and strikeout of Simon's original text:

"In this approach, developers select from available [Shareware or Trialware] Free software and try the software that fits best in their proposed application. They develop prototypes, switch packages as they find benefits and problems and finally create a deployable solution to their business problem. At that final point, assuming the application is sufficiently critical to the business to make it worthwhile to do so, they seek out [the creator of the Shareware or Trialware] vendors to provide support, services (like defect resolution) and more. Adoption-led users are not all customers; they only become so when they find a vendor with value to offer."

If you agree that the paragraph above holds, then you should logically agree that the original paragraph was not sufficient to distinguish an Adoption-led market from a Shareware/Trialware market.

To Simon & Pete who commented that Adoption-led doesn't have to be about Support only. That's good, and I'd agree. However, except for the "and more" portion of the definition, everything being discussed would fall into a traditional description of support:

"seek out vendors to provide support, services (like defect resolution) and more."

Anywho, at the end of the day, an "Adoption-led market", regardless of the definitional edits we may/may not make, is different from a procurement-led market. I'm not as convinced as Simon and Zack that that this shift is occurring at a rapid enough pace. Nor am I convinced that it the only valid outcome for the software market of tomorrow. I'm just looking at the data. But hey, who can predict the future.

PS: I should state: "The postings on this site are my own and don’t necessarily represent IBM’s positions, strategies or opinions."

Posted by Savio Rodrigues on March 17, 2008 07:25 PM


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Seems to me that F/OSS is a evolution of the concept. The fundamental difference being that Shareware/Trialware projects never set out to attract developer communities. For that reason they remained programs that were of the size capable of being developed and maintained by an individual or small group. The utility of these products was therefore much smaller on an individual basis and this limited the possible revenue able to be derived from a single customer.

What they share in common is the inability to monetize a higher volume market. For Shareware/Trialware this was the only market they addressed or could hope to monetize (small dollars large volume), for F/OSS there seems to be an option (the only one most are taking) to try and penetrate the Fortune 500 and forget about the smaller enterprises.

The future of F/OSS is an interesting one. The majority of projects fit the market of infrastructure products and not COTS style applications (ie. those that support business process). Is the future of F/OSS as OEM/ISV bundled technologies that supply industry focussed solutions that support specific business process, or will be stay as the technology of Web 2.0/Startups building the next generation of applications. Maybe it will support the enterprise innovation which cannot be supported by anything other than custom code development. Probably all of the above.

I doubt it is in the traditional software markets, as I think legacy will or should make the leap from closed source model to SaaS or some form of hosted solution. Seems little or no utility in managing software that supported well known and undifferentiated business process (eg. printing cheques, managing employee benefits).

One thing is for sure. Best to be in a small install base market growing at faster than most of the competitors where the biggest challenge is how to convert users into customers. Who would want to be trying to solve the problem of manufacturing "lock-in" to preserve profits, while trying to hack out costs.

Posted by: buraddo at March 17, 2008 10:45 PM

I still think you’re missing the point, Savio. Trialware and shareware can’t be taken into production; there comes a point where a procurement decision has to be taken and acts as a gate. Only Free software, not “free” software, is capable of being taken all the way to production. The choice in an adoption-led market is a genuine choice at deployment time of whether to buy the subscription, hire the experts in-house or punt and take the risk.

This, by the way, will eventually force change for open source companies who differentiate between the “community” version and the “enterprise” version and force a procurement decision before deployment.

Posted by: Simon Phipps at March 22, 2008 04:52 PM

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