SAN FRANCISCO--()--Today at Computerworld’s Open Source Business Conference (OSBC), a panel of top experts in the commercial open source industry, including executives from Acquia, Black Duck, North Bridge Venture Partners, Red Hat, and SugarCRM, announced the results of the North Bridge Venture Partners' annual ‘Future of Open Source’ survey. The survey results, collected from over 550 respondents including both vendors and non-vendors, highlight a range of significant issues continuing to impact the open source software landscape. Economic conditions, key market drivers and forecast for the coming year are among the topics taking center stage. The session will also gather real-time feedback from attendees via live text votes throughout the panel.
“Open source has moved into mainstream as people’s understanding and skills around it have matured. The question is no longer about proprietary vs. open source; it is how can open source be used across all tiers of the software stack”
“This year we opened up our survey to an even broader range of industry collaborators and a record number of participants including both vendors and non-vendors, and it’s clear that open source innovation is driving opportunities across all levels of the ecosystem,” said Michael Skok, General Partner at North Bridge Venture Partners. “Vendors are taking advantage of it and end-users are reaping the benefits. It’s a win-win and both industry players and open source communities are thriving as a result.”
Following are some of the key findings from the survey:
The survey found that economic and competitive factors continue to drive open source adoption.
The survey also revealed barriers to open source adoption.
Overall the survey underscored the continued momentum of open source.
The reduction of venture funding in open source in 2009 in publicly disclosed funding deals down 37% to $375M, as cited by The 451 Group, also highlighted the impact new platforms have on open source vendors. The result is a reevaluation of business models, with vendors seeking new market strategies.
Overall the survey found that from the community to customers to vendors, market growth is expected at all levels.
“In our view it’s a winning situation all around,” said Skok. “Customers want vendors to provide better visibility into new open source projects along with commercial support and services. That in turn is beneficial to the development communities behind those projects as they see greater adoption.”
Skok continued, “While we are as discerning as ever of our investments, those vendors that evolve to take advantage of shifts like cloud computing and look to provide leverage in their business model with things like electronic services can expect to attract funding from us. As proof of that we have already reinvested in Acquia’s continued rapid growth and closed three new deals in open source in 2009, including Akiban Technologies, Northscale and REvolution Computing.”
The 2010 Future of Open Source survey was developed collaboratively by North Bridge with input from 24 collaborators including Akiban Technologies, Olliance Group, Jaspersoft, Microsoft, Red Hat, Sand Hill.com, and the 451 Group, many of whom have contributed their views and vision to the Future of Open Source Forum. To see the full survey results visit: tinyurl.com/FOOS2010 and to view the Forum visit http://futureofopensource.drupalgardens.com/welcome-future-open-source-forum.
Computerworld's Open Source Business Conference (OSBC) is the industry's only forum for senior business leaders, C-level technical strategists, lawyers and venture capitalists to collaborate on emerging business models, strategies and profitability for open source software use. OSBC explores the legal, investment, vendor and customer risks, rewards and opportunities presented by open source software. The program will provide content-rich sessions from well-known thought leaders and industry executives on how open source technology is being used and will investigate the business implications of this technology. For additional details, please visit www.osbc.com.
About North Bridge Venture Partners
North Bridge Venture Partners is an active, early-stage venture capital firm based in Boston, Massachusetts and San Mateo, California, founded in 1994. With approximately $3.1 billion under management, North Bridge Venture Partners focuses on investments in the communications, software, new media, healthcare, and materials technology. Working closely with entrepreneurs, North Bridge adds value by providing strategic guidance, specific industry knowledge, team-building skills and an in-depth understanding of both private and public financings. North Bridge companies represented at OSBC include Acquia, Akiban, Mozes, NorthScale, REvolution Computing, and rPath. For more information, visit North Bridge's website at www.northbridge.com. North Bridge also has a growth equity arm in the North Bridge Growth Equity fund that invests in technology middle-market companies.