Open source take-up booming in APAC

He added that when companies consider any software acquisition, several factors come into play. This includes the level of reliability and security, as well as the skills needed to use the software effectively.

"At the end of the day, the concerns surrounding open source and proprietary software are very similar," Chee said.

He said the lack of skills in deploying open-source software remains a problem among Asia-Pacific companies, including small and midsize businesses which typically do not have in-house tech expertise or an IT department.

On Microsoft's move to provide assurances against patent lawsuits, Chee said that Asia-Pacific companies do not have major concerns about being sued for using Linux, because "it's really a problem between vendors, and not the end users".

"Typically, vendors will give assurances to the end-user community on the things that will protect them from lawsuits," Chee said. "From what I've seen in our previous surveys when the SCO litigation was at its peak, users didn't say that litigation was a key concern."

Beyond Linux
While the Linux operating system has been the poster child of the open source community, the market for open source business applications like CRM and ERP is still nascent, Chee said.

Jason Lim, director of technology at iZeno, a Singapore-based systems integrator that specialises in open-source business applications such as Compiere ERP and SugarCRM, said: "Most people hardly hear of open-source business applications, but we think open source will slowly move up the software stack."

Open-source business applications have matured over the years, particularly in terms of features and usability, but there is still room for improvement.

"Developers like to build impressive architectures, and very few are focused on UI (user interface) -- that could also be why we've not seen mass adoption of open-source business applications," Lim said. "You can tell business users about all the features available, but if usability is poor, adoption will be very low."

Lim said that it is generally easier to sell the open source story to SMBs since it provides cheaper alternatives to the likes of SAP and Oracle. Almost all of iZeno's customers are SMBs.

"It's very difficult for us to go into the multinational companies because they can't [afford for] systems to go down for even an hour, and not many systems integrators support the applications," Lim said.

"Furthermore, not many enterprises are willing to take the first step to run their critical operations such as finances on open-source ERP applications," Lim added.

However, one area that large enterprises may be more receptive to using open source is CRM. Lim said that unlike ERP, if issues arise in the open source CRM application, the entire business operations will not be affected.

He added that the relatively simpler workflow processes in CRM requires a smaller degree of customisation, so enterprises can get these applications deployed quickly.

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Talkback 3 comments

  1. So what are the real figures for Australia alone? Patanjali sokaris -- 11/07/07

    Lots of words but no real stats.

    Like to know more details about the penetration and percentages of what exactly.

    Lots of companies like to boast of high profile clients who in reality may only have bought one copy of their software for evaluation.

    Usage doesn't necessarily mean enterprise-wide.

    And what are the real figures for Australia, as opposed to countries that have had a tendency to not want to pay anything and pirate en masse rather than buy and to whom open-source represents a less risky alternative.

  2. It is price, not freedom, and not security .. Anonymous -- 11/07/07

    Look, Asia ex-Japan is (still) a lot poorer than America or Europe. Asian companies (I am in one) cannot afford to pay the say per seat pricing of their western counterparts. Our per employee margins are nowhere compared to western firms, because we still operate in relatively low value-added activities. So we make do.

    Our own company uses open source pretty extensively, and always has (before open source became fashionable in the west). I remember us using Linux, SendMail etc. in 1998, for example.

  3. Between 25% and 70% Bruce Wren -- 12/07/07

    What crap analysis. I can cope with a 5% variance, but 55% is something I wouldn't countenance from a school child let alone a so called industru publication.
    ZDNET, either report real numbers or get out of this business - you should be ashamed of yourselves.

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