06/05-03   -   Pressmeddelande

Open Source: Low Cost Software and a Different Market Model? IDC Publishes First Nordic Study on Open Source

The promise of low cost software and a different market model enabling users to have more influence on the products is making Open Source software (OSS) a highly debated issue in the Nordic region. The Nordic public sectors are considering Open Source software as a low cost alternative to proprietary software. They are also looking to create alternatives to market monopolies, increasing competition in the market, as well as encouraging a wider acceptance of open standards. Private companies are also looking at OSS — but from a more pragmatic cost/benefit viewpoint.

IDC forecasts that the market for Linux server systems will grow rapidly over the next five years, reaching a total value in the Nordic area of $200 million by 2006, accounting for almost a third of all server shipments. This drives another market for software for Linux systems, reaching a value of $250 million by 2006, most of which will be proprietary software running on Linux.

"The market for Open Source software, and Linux in particular, is set to experience high growth over the next five years. Following government adoption and increased support from traditional vendors, Linux and other open source products will experience higher general acceptance by commercial users," states Per Andersen, managing director of IDC Nordic. "At the same time, we will see how the Open Source movement will change to adapt to more traditional business paradigms in order to meet customer requirements."

Many myths exist around OSS. One of these is that the software is developed, supported, and provided through communities of free labor resources and other volunteer work. This is not true, as IT professionals with an income from OSS carry out most of the work. Therefore, the OSS world today needs to be heavily financed by traditional vendors such as Sun, IBM, and HP.

IDC believes that OSS can be meaningfully deployed in many cases, in particular if the decision is made on sound business considerations rather than a political agenda aimed at interfering with free market dynamics. "IDC also believes that the decision to use Open Source software is not nearly as simple as many Open Source proponents would like us to believe," Per Andersen continues. "Users are facing difficult choices between low initial product costs versus product guarantees. Just one aspect of this is the lack of guarantees against claims of intellectual property rights for OSS products."

"IDC suggests that IT professionals consider far more than just acquisition costs when considering the total cost of ownership (TCO) of any new technology. Other factors, such as strategic IT choices, company standards, IT staff skills and competencies, application availability, application deployment, and performance considerations, should be considered as part of a total platform evaluation," Per Andersen concludes.

The IDC study Linux and Open Source Software: Where is the Interest in the Nordic Region? (IDC #N520315K) explains the complexity of the OSS world and provides a detailed assessment and key recommendations to both users of OSS and IT vendors in this field, separating myth from reality. The markets for Linux and other open source products are forecast and the key drivers of the market are described.

The study is available to purchase from your local IDC office, or on www.idc.com.

For additional press releases from IDC Nordic, please see: www.nordic.idc.com/press

About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC´s customers comprise the world´s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world´s leading IT media, research and exposition company.
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For more information, contact:

Per Andersen
+45 39 16 22 22
pandersen@idc.com

Lotta Hållén-Kragh
+45 39 16 22 42
lhallen@idc.com