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Open Source Software the Microsoft’s guy’s perspective: 

Open Source Software the Microsoft’s guy’s perspective Brett Roberts Competitive Strategy Manager Microsoft NZ brettrob@microsoft.com

Agenda: 

Agenda Terminology and background The key considerations Security Legal aspects TCO Microsoft’s bet: “Integrated Innovation” The bottom line

Slide3: 

Hype: OSS is anti-Microsoft, Microsoft is anti-OSS etc etc etc… Reality: SourceForge data at July 31st: POSIX: 26,420 OS independant: 15,915 Microsoft: 15,742

A Definition of “Open Source” *: 

A Definition of “Open Source” * Methods Licensing Community “Open Source” and “Open Standards” * www.opengroup.org/tech/open-source/opengroup-os-strategy.htm

Slide5: 

Open Source Actually several different models All make available some or all source code Some allow changes to source code Some allow redistribution of source code Some allow software to be copied at no charge A range of strengths and weaknesses, depending on the model used Strengths can include – transparency, community, customer feedback, and a lower price for the software Weaknesses can include – unclear product planning responsibility and uncertainty over who stands behind product, unplanned forking, unsustainable business model “The public is confused about the actual meaning of Open Source software.” Donald Rosenberg, Open Source: The Unauthorized White Papers

The Source Code Continuum: 

People create OSS for both commercial and non-commercial reasons The Source Code Continuum Commercial Shared Source Non-Commercial Open Source Commercial Open Source Academics Enthusiasts Gov’t Researchers IBM SuSE Linux SAP Apple Microsoft Software AG Microsoft’s Bet: Many organizations will prefer stable and integrated products because they are easier to deploy, support and secure. Careful management of IP creates incentives necessary for R&D and innovation

Slide7: 

Question: Is access to vendor source code critical to achieving your IT and business objectives ? Reasons ? Increased value to business Security

Shared Source Programs: 

Shared Source Programs Source code for: Windows 2000 Windows XP Windows Server 2003 all versions, SP’s and betas >100M lines of source code

Government Security Program: 

Government Security Program Provide national governments with access to Windows source code 62 countries eligible UK, NATO, Russia, China examples of current participants Primary objectives Transparency Partnership

Slide10: 

security

How do you measure “security” ?: 

How do you measure “security” ? Total security advisories ? CERT advisories ? Days between vulnerability and patch ? Communication processes ? Cost of patching ? Overall impact ? Other… ?

Security is an industry-wide challenge: 

Security is an industry-wide challenge Source: CERT

Security Comparison: 

Security Comparison

Slide14: 

Hype: “Many eyes make all bugs shallow” Reality: Security is about processes, people and communication and the continual improvement thereof

Security Framework: 

Security Framework

Comparing the processes: 

researcher patch vendor Comparing the processes

Slide17: 

researcher patch Microsoft Office Windows XP Exchange Windows Server SQL Server ISA Server

Slide18: 

researcher patch IBM Openoffice Samba KDE PHP Squid Linux kernel SendMail Gnome MySQL Mozilla Red Hat

Slide19: 

legal aspects

Points for consideration: 

Points for consideration Firstly, I am not a lawyer Research and understand the popular OSS licenses Developers should have guidelines and policies Concern for legal issues varies by role SCO vs IBM highlights potential issues Indemnity Everybody has an opinion

Slide21: 

total cost of ownership

Slide22: 

Research Defines Two IT Priorities Lower Total Cost of Ownership Leverage existing assets Hardware is getting LESS expensive Downtime is MORE expensive Increase Business Value Connect with Customers (Revenue) Integrate with Partners (Profitability) Empower Employees (Productivity)

What Factors Contribute to TCO?: 

What Factors Contribute to TCO? IDC 2002 Initial software cost is 5% of long-term TCO Independent analyst firms confirm that staffing and downtime are the biggest cost factors

Microsoft’s Bet: Integrated Innovation “better together, plays well with others”: 

Microsoft’s Bet: Integrated Innovation “better together, plays well with others” Some services not available in Linux distributions are available at additional cost from vendors such as IBM

Slide25: 

Management and Security Servers Visual Studios and Front Page Information Worker Infrastructure Application Platform IT Infrastructure

Lower Total Cost of Ownership: 

Lower Total Cost of Ownership IDC study found Microsoft costs less when considering all factors of the software deployment lifecycle 5 Year TCO Advantage = Windows Lower TCO = Linux Lower TCO -5% 5% 10% 15% 20% 0% Source: IDC 2002 25% 30% Simple web does not include web- based applications or development Low total costs for simple web overall amplify hardware & software cost differences Microsoft expects to take the lead for Simple Web with Windows Server 2003

Slide27: 

The Bottom Line

The bottom line: 

The bottom line It’s all about: Cost: direct and indirect Value: today and in the future Risk: business, legal Look beyond the hype Standard evaluation criteria Select on overall merit

Slide29: 

© 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. Brett Roberts Competitive Strategy Manager Microsoft NZ brettrob@microsoft.com