Open Source vs Proprietary Software Co? Large Software Vendor vs. Small Software Vendor? Does It Matter?

In a recent post his blog, PLM Think Tank, Oleg Shilovitsky wrote about the PLM Open Source Tradeoff.  I shared my thoughts on the piece and I am wondering what you think.

Here’s what I think…

“I’m old enough to remember when the safest decision in computing was IBM, and it truly was the best decision. They had great technology, very loyal employees who provided excellent customer service, and IBM made long-term commitments to their customers that spanned decades.

I can also remember when new engineering graduates would start work at a company, and spend their entire (happy) careers at this one company.

But the situation has changed. Maybe it is because of the short-term pressures of the stock market, or the internet, or who-knows-what. Anyway, it’s kind of sad.

I think many positive attributes once associated with large companies, are just not true anymore:
- Customer service has been outsourced to increase profits
- Manufacturing has been outsourced and the cheapest possible materials used to increase profits
- Design has been outsourced to increase profits
- Long term job prospects and job satisfaction have been compromised by constant cost cutting

I think the discussion should not be about open source versus proprietary software company. This might be a large software vendor versus small software vendor discussion.

-          Which company is most innovative?

-          Which one will provide best customer support?

-          Which company’s employees are most committed to being and doing the best?

I believe these best attributes are now found in the smaller companies. Or maybe it’s the private companies versus public companies? What do you think?

I’ve spoken with many PLM users at conferences over the last decade, and there is a very clear message that they are disappointed in the PLM vendors.

Customers make expensive investments in specific products, and then those products or platforms are cancelled. They make expensive investments in consulting, but the implementation projects never get completed. Years later most end-users have barely got CAD file management working properly.

The vision of what PLM could be has never been realized. The vision wasn’t wrong, it just was poorly executed, by these same big software companies that are held up as the “safe” option.  So I clearly disagree that large vendors represent a “safer” or even “better” solution.

Is Open Source the answer? My bet is yes. A business relationship in which the customer only pays for success is bound to drive better results.”


Posted Fri, Jun 18 2010 9:31 AM by Peter Schroer

Comments

Oleg Shilovitsky wrote re: Open Source vs Proprietary Software Co? Large Software Vendor vs. Small Software Vendor? Does It Matter?
on Fri, Jun 18 2010 4:34 PM

Peter, I agree with your points about innovation, support and commitment. However, these requirements can be applied to any software vendors regardless on Open Source belonging. The Open Source, in my view, is much more horizontal than PLM, ERP etc. The current customer's disappointment is coming as a consequence of their feeling about PLM price/value coming from mindshare PLM vendors. Aras just shifted it to acceptable zone. I think the focus need to be placed into two directions: 1/future alignment of enterprise software to open source; 2/community of customers. These two things can place an open source PLM (and not only) in the position of sustainable business. Just my thoughts... Best, Oleg