Alfresco CEO John Powell on the Value of Free
Is it possible to make money by giving something away for free? John Powell, CEO of Alfresco Software, believes that the open source software market is worth US$60 billion. The value doesn't accrue from the revenue that it generates. Rather, that value is rooted in the cost savings for his customers.
Looked at from this angle, open source is the largest technology industry, Powell believes. That was the basis for a decision he made when Alfresco began developing an open source alternative for enterprise content management (ECM), document management, collaboration, records and knowledge management, content management and imaging solutions.
By eliminating the hefty licensing fees for proprietary software, open source saves money for more effective and customized software implementations, according to Powell. He firmly believes that large corporations are taking notice. With major acquisitions like Sun Microsystems (Nasdaq: JAVA) and MySQL, Yahoo (Nasdaq: YHOO) and Zimbra, and Citrix (Nasdaq: CTXS) and XenSource, global market leaders appear to be changing the way they are looking at proprietary software and moving to a more open architecture.Read more