[Ilugc] Is the proprietary camp winning ?

Sivakumar Ma masivakumar at gmail.com
Tue Oct 17 10:44:15 IST 2006


On 10/17/06, Toufeeq Hussain <toufeeqh at gmail.com> wrote:
>
> What we tend to forget here when we make comparisons of FOSS vs
> Proprietary models is the time-frame which it has taken for the above
> mentioned companies to reach the stature of multi-million dollar
> empires.
>
> Let's just go back and have a look at their beginnings.
>
> - Microsoft[1] Founded in 1975, which means it has taken them 31 years
> to reach the current position as leader in the Software business.
>
> - IBM [2] : Founded in 1888, whew! more than 100+ years in existence.
>
> - Apple and Oracle [3][4] : Founded in 1976 and 77 respectively, a
> couple of 30 year old corporations.
>
> [1] http://en.wikipedia.org/wiki/MICROSOFT
> [2] http://en.wikipedia.org/wiki/IBM
> [3] http://en.wikipedia.org/wiki/Apple_Computer
> [4] http://en.wikipedia.org/wiki/Oracle_Corporation
>
> Now I want all of you to make an assumption that we are in the 1970's.
> A time when selling computer hardware (big iron b0xen) was considered
> the most(only) viable business model in the software industry.
> Hardware was 'proprietary' back then, not the off-the-shelf industry
> it is today. With that in mind consider the mentality of Bill Gates,
> Larry Ellison and the Steve's as they start to go about creating their
> business plans. They would have asked the same question which we are
> (sort of)asking today, 'How can proprietary software be a viable
> software model when compared to proprietary hardware which has created
> such million-dollar businesses ?'.
>
> I'm sure they would not have had an answer to that question, as is the
> same case today. But consider the fact that a few determined
> individuals do take the plunge at the same time believing that the
> FOSS-business model is the right way forward for the future of the
> computer industry then think of the implications that these companies
> will have after 30+ years of their inception.
>
> Ofcourse, this is purely based on the fact that what they are
> selling/marketing is unique enough that it creates a need in the
> market and people would like to pay for it. I see RedHat/Canonical and
> Novel worth keeping an eye on for the next 30 years. Remember, MS had
> to wait nearly 30 years before their product (Win 3.0) could create
> sufficient demand for them. Also, remember that Apple was once on the
> verge of bankruptcy.
>
> The real question to ask oneself is, 'Am I going to sit and debate
> about whether the business-model which I'm seeing grow in front of me
> is a good one or not or take a risk and plunge into it and see what
> happens ?'
>
> By the time a business model is stabilized and an industry has grown
> around it, it's usually too late for a brilliant industrialist to make
> his move. That's why you see so many web-based startups meet so much
> success. The time is now ripe for a FOSS-based startup's to flourish.
> The question is, 'Do you want to see them grow, or grow one yourself'.
>
> -Toufeeq


Toufeeq,

Brilliant insight.

Best regards,

Ma Sivakumar
-- 
Ma Sivakumar,
BSG LeatherLink Pvt Limited,
Chennai.
http://www.leatherlink.net


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