• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

How corporate America went open-source

By
Megan Barnett
Megan Barnett
Down Arrow Button Icon
By
Megan Barnett
Megan Barnett
Down Arrow Button Icon
August 16, 2010, 12:50 PM ET
Add Fortune on Google for similar content.

According to recent surveys, more large companies are committing to open-source software. How the platform went from closet to corporate.

By Kit R. Roane, contributor

There was a time when open-source software was the domain of computer geeks and do-it-yourselfers with more time than money. But, as Oracle’s legal salvo against Google highlighted last week, those days are long gone.

Oracle (ORCL), through its purchase of Sun Microsystems, has become one of the largest purveyors of open-source software in the world. Google (GOOG) makes the open-source and increasingly ubiquitous Android smartphone operating system. Their fight revolves around Java, a programming language Sun made predominantly open-source several years ago, but which Oracle’s founder and CEO Larry Ellison now calls “the single most important software we’ve ever acquired.”

Oracle’s legal move lit up the blogosphere, with InfoWorld writing that “Oracle may ultimately create a chilling effect over the Java ecosystem and big open source projects throughout the industry,” while ZDNet opined that Oracle “plans to sue its way to success.” Google encouraged such views, calling the lawsuit a “baseless” attack on both Google and “the open-source Java community” that “works every day to make the Web a better place.”

Whatever the truth, the legal dust-up has highlighted the growing importance of freely available open-source software to consumers of all stripes, in particular those making technology purchasing decisions in corporate America. For every nerd hacking an Arduino microprocessor to detect farts or brew beer, there is a well-paid technology buyer at a multi-national corporation looking to implement an open-source database, web server or business intelligence suite.

Rising tide lifts all boats

A Forrester Research survey of the business landscape in the third quarter of last year found that 48% of respondents were using open source operating systems, and 57% were using open source code, which are the building blocks of software. A similar survey of 300 large public and private companies conducted by Accenture this August found that half are committed to open source software, with 38% saying they would begin using open-source software for “mission-critical” applications over the next 12 months.

As Forrester Research analyst Jeffrey Hammond told those gathered at LinuxCon last week, “open source has crossed the chasm,” adding that what was once the IT department’s dirty little secret has now become “strategic adoption” in businesses both large and small. For instance, Amazon (AMZN) deploys open-source software for almost every task, Sabre travel network runs 32,000 transactions a second through it, Peugeot uses it on desktops and servers, and the New York Stock Exchange (NYX) bases its critical trading platform on the stuff.

Companies have become more comfortable using open-source as established technology companies, such as Oracle and IBM (IBM), have moved more aggressively into the space, often times improving the quality and heightening the profile of open-source options. Technology providers Novell (NOVL), Citrix (CTXS), Intel (INTC) and Yahoo (YHOO) have made robust open-source acquisitions over the last decade. Sun (prior to its sale to Oracle) raised eyebrows when it paid $1 billion to purchase the open-source database provider MySql in 2008. And, last week, when HP (HPQ) CEO Mark Hurd resigned, columnists opined that HP might finally embrace an open-source vision to grow its way out of its proprietary slump.

These established technology firms have also become active in nurturing open source projects. More than 100 of them, such as SAP (SAP), Nokia (NOK) and IBM, now work on the free distribution at the heart of one open-source development platform called Eclipse, and even open-source scourge Microsoft (MSFT) had tiptoed into the enemy camp, recently helping start the CodePlex Foundation to encourage open-source development and releasing 20,000 lines of its own proprietary code.

“This is one of the huge changes in open source over the last decade — the move from mostly volunteer developers to corporate participation,” says Jim Herbsleb, a professor of computer science at Carnegie Mellon University who has studied the open source movement. “It has provided a large infusion of resources. It has also created pressure for more discipline, for example in predicable release schedules, which makes open source more attractive.”

Why it works in corporations

There are good reasons for these technology companies to participate; open-source doesn’t necessarily mean free, after all. Just like printer companies almost give away the printer to sell the ink, open-source companies often give away the software platform, then make money by charging to install, configure, upgrade, troubleshoot, or provide additional bells and whistles for it.

The key benefit for the companies that coalesce around a particular open-source platform is that open-source encourages innovation and the rapid expansion of the market can lift all of their boats.

That market is growing, with open source software helping power everything from the engines of the original internet to the latest mobile phone operating systems and cloud computing platforms. Google’s Android software — which runs a host of smartphones from Motorola, Samsung, LG and others — has surpassed Research In Motion and Apple’s iOS to become the most-used software in smartphones sold to consumers in the United States; unable to compete in the smartphone market, the flagging Nokia just open-sourced its own proprietary operating system, called Symbian, a well-worn workhorse which is more than a decade old.

Economic malaise has certainly driven many companies to seek out open-source systems for a wider variety of applications, with some recent surveys showing tighter budgets to be behind about 40% of corporate migration to open-source software. But Accenture notes that budget constraints are not the only reason for the move, with many companies saying they think that open-source software now offers greater quality, more reliable and better security than proprietary systems.

Although an uptick in the economy could curb some of the growth, experts like Herbsleb believe open-source penetration in corporations will continue to accelerate. He notes that the demand for software is growing rapidly in every area, with the average car containing more than 20 processors alone, and industries from banking and insurance to medical care all facing growing technology needs.

Open source development provides an increasingly efficient and cost effective way to deal with those needs, while enabling customers to avoid being locked into one vendor or being forced to use its approved partners when they need service or support. Over the next decade, Herbsleb predicts such forces will drive the market for open-source software to “increase dramatically.”

About the Author
By Megan Barnett
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Best private student loans for medical school
Personal Financestudent loans and debt
Best private student loans for medical school
By Joseph HostetlerJuly 2, 2026
7 hours ago
Michael Burry just shorted Caterpillar’s 172% AI rally. One analyst says his bet won’t even matter
Investingstock prices
Michael Burry just shorted Caterpillar’s 172% AI rally. One analyst says his bet won’t even matter
By Marco Quiroz-GutierrezJuly 2, 2026
8 hours ago
Opti-Greens 50 Review (2026): Insights from Hands-On Testing
HealthDietary Supplements
Opti-Greens 50 Review (2026): Insights from Hands-On Testing
By Christina SnyderJuly 2, 2026
8 hours ago
U.S. Treasury Secretary Scott Bessent
EconomyDebt
AI’s $2.2 trillion deficit fix is already half fake, economists say
By Tristan BoveJuly 2, 2026
9 hours ago
s
Personal FinanceSports
The sports economy is unaffordable at the bar, let alone the stadium
By Catherina GioinoJuly 2, 2026
9 hours ago
m
Politicsfraud
Trump fights fraud by freezing funding for New York’s Medicaid Fraud Control Unit
By Ali Swenson, Geoff Mulvihill and The Associated PressJuly 2, 2026
9 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
11 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
8 days ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
21 hours ago
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
Success
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
13 hours ago
Current price of oil as of July 2, 2026
Personal Finance
Current price of oil as of July 2, 2026
By Joseph HostetlerJuly 2, 2026
14 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.