Summary
Each year the State of California spends millions of dollars on software, software maintenance
and renewal. Many private and governmental organizations are turning to open source
software as a cost-effective alternative to closed source software. The state should more
extensively consider use of open source software, which can in many cases provide the same
functionality as closed source software at a much lower total cost of ownership.
Background
The typical model for software acquisition in state government involves the purchase of closed
source software solutions from the major vendors. Closed source software is any software
whose source code is hidden from the public view. Under most licenses the user cannot modify
the program or redistribute it. Closed source products encompass the spectrum from server
operating systems, application development platforms, office productivity suites, to small yet
often expensive utilities. Each of these software solutions has an initial investment cost,
maintenance and/or upgrade costs.
Organizations are now starting to embrace open source solutions as a cost-effective alternative
to these closed source products. Open source solutions differ from closed source in many
ways, one of which is cost. Open source solutions are typically free of charge, although some
companies such as IBM, Oracle and Hewlett Packard (HP) often sell versions of open source
software with related maintenance. The following 10 features distinguish open source:
Open source software is developed with the source code freely available; anyone can use the
software, and make changes to it as necessary. Typically changes are then made available back
to the open source community using a common methodology for change control. In contrast to
open source, most software development companies sell their products at a specific cost, but
do not allow the user to see or modify the source code.
The advent and acceptance of open source software represents a significant shift in the
software development and procurement cycle. It is sometimes difficult to think of
downloading a free version of software from the Internet and then using it in a mission-critical
environment rather than buying software from a major software vendor. There are arguments
to be made that open source can be a better choice for some mission-critical implementations
than closed source. The following are some potential reasons for choosing open source:
Open source install base
Probably the most recognized open source product is the operating system Linux, which is
used in thousands of mission critical applications. Amazon.com for example uses a Linux-based
infrastructure to process millions of transactions per day.[3] Open source software has
made the biggest impact on back-end systems such as web and application servers, with many
of these products being the dominant software used in the market. According to the Netcraft
Web Server Survey, the open source Apache web server software currently hosts 63 percent of
all Internet pages. Open source Sendmail (mail server) is used on over 600,000 e-mail servers.
Linux is used on over 7 million computers.[4]
Open source software solutions span a broad range of technologies from productivity suites
(Open Office, http://openoffice.org) to web browsers, data bases, security tools, and somewhat
more specific applications, like time and reporting software. It is possible today to run a fully
open source desktop and still be compatible with many closed source applications.
Some state agencies have adopted open source solutions as well. Examples are provided
below.
Air Resources Board (ARB) makes use of open source in their web environment. For
example, ARB runs the Linux operating system with the Apache web server, MySQL
database, Perl and PHP coding and a Swish-E search engine. ARB has used open source
from the inception of their web install.[5]
The Franchise Tax Board (FTB) is using select open source products by including them
as alternatives to any potential software purchase. The largest installation is a product
called Virtual Network Computing (VNC) with a base of 5,000+ clients, which assists
helpdesk staff to perform desktop maintenance and remote management. The
comparable closed source solution costs approximately $66.00 per client license. For this
one installation FTB realized a total savings of $330,000. In addition, FTB is being very
proactive in looking at open source alternatives to software products that are due to be
renewed and is also looking at larger installations of open source such as using Linux
on the mainframe.[6]
The California Department of Transportation (Caltrans) initiated a project for identity
and password management. The rollout required new hardware and software that was
quoted at nearly $500,000. Instead Caltrans decided to run the application on an open
source operating system, and as a result was able to select hardware and software that
cost only $220,000, thus saving nearly $300,000. Caltrans is looking elsewhere within the
organization to move to Linux for additional savings.[7]
Vendor support of open source software
Companies such as IBM, Hewlett Packard, and Oracle have been investing millions of dollars
into open source software development. Additionally, open source code products are available
for many different hardware platforms, including hand-held devices to mid-range servers.
Typically the state relies on maintenance contracts for upgrades for closed source software and
software problems. Support for open source software is available from many of the major
vendors through third-party maintenance contracts; for example, many of these vendors will
support any version of Linux, providing upgrades and maintenance.[8]
In summary, open source is not just about cost savings. Since the code is open, it offers the
flexibility for organizations to modify the code as needed for specific uses. Many also feel that
open source is more reliable and secure than closed source.[9] In closed source software, the code
is hidden from the user so it is difficult to identify potential security risks in advance and to
work proactively to make the system more secure. Also, bug fixes and patches must be
distributed from the originating developer rather than originating from the users who have
identified the problem. In this regard, open source can provide superior security than closed
source.
Recommendations:
For potential immediate savings, departments should take an inventory of software
purchases and software renewals in the Fiscal Year 2004-2005 and implement open
source alternatives where feasible.
Every state agency has hundreds of different software products in use, from desktop
applications and utilities to server and application development tools; all of which have
their own maintenance and upgrade costs. From the tactical perspective agencies
should look at all software contracts that are up for renewal, or software that is being
purchased in FY 2004-2005. They would then evaluate open source software that could
be implemented in place of the closed source solution.
Incorporate open source software as a viable alternative to any software procurement.
Today, when state agencies purchase software solutions they are required to look at best
value, and often go through a formal procurement process wherein vendors submit
proposals. Since open source code solutions do not fit the traditional procurement
model in that there is not usually a vendor promoting and proposing the product, it is
recommended that state departments actively research and evaluate open source code
alternatives prior to considering use of the traditional procurement model for software.
Fiscal Impact:
The recommendation to inventory software purchases and software renewals in FY 2004-2005
and implement open source alternatives where feasible should have no immediate fiscal
impact. Agencies participating in this review could fund any minor cost from their existing
budgets.
The fiscal implications for the use of open source software can vary widely depending how
deep an organization is willing to use these technology solutions and whether they are used at
the desktop, server or other installs. Savings could range from several hundred thousand
dollars to millions. As listed above, FTB realized savings of more than $300,000 on one
software installation. The Department of Transportation realized nearly $300,000 in savings on
one application. Also, as software licensing and application development costs continue to
increase, organizations are looking at creative ways in which to manage those costs. Looking to
the open source community for applications that serve the same function as closed source
solutions may cause vendors to be more flexible with pricing and licensing structures. Because
these savings will depend on individual agency actions, however, the savings resulting from
this recommendation cannot be estimated.
Endnotes:
[1] Bruce Perens, "The Open Source Definition"
http://www.opensource.org/docs/definition.php
[2] David A. Wheeler, "Secure Programming for Linux and UNIX HOWTO"
Chapter 2.4 "Is Open Source Good for Security?"
http://www.dwheeler.com/secure-programs/Secure-Programs-HOWTO.html
[3] C/Net, "How Linux Saved Amazon Millions"
http://news.com.com/2100-1001-275155.html?legacy=cnet
[4] David A. Wheeler, "Why Open Source Software/Free Software (OSS/FS)? Look at the Numbers!" (June 8, 2004)
http://www.dwheeler.com/oss_fs_why.html
[5] Bill Welty, chief information officer, California Air Resources Board, "Air Resources Board Open Source Software Initiatives"
http://www.arb.ca.gov/oss/oss.htm
[6] Interview with Allen Lung, systems architect, California Franchise Tax Board, Sacramento, California
[7] Interview with Troy Kallas, account executive, Novell Corporation, Sacramento, California
[8] Oracle Corporation, "Oracle on Linux"
http://www.oracle.com/technologies/linux/
IBM, "Linux at IBM"
http://www-1.ibm.com/linux/
[9] David A. Wheeler, "Why Open Source Software /Free Software (OSS/FS)? Look at the Numbers!"