People have been writing a lot about the open source of late and there has been a wide spread adoption of some of the opensource tools and operating systems world wide.
The way people consume these open source software suggests that they adopt open source only because the software comes for free. No one actually edits the code and tinkers with it. Now, such software only eliminates the upfront license cost and do not reduce the TCO, there has been many reports available which proves that open source is not completely free. There are still maintenance cost and infrastructure cost that are incurred in open source.
To me, open source will be successful in the platform, tools layer, but not in applications. Even though there are few successes, they are highly fragmented and still not as powerful as a Linux or a JBoss or an Apache wave. SaaS based applications are much more beneficial in reducing the TCO and also removing the headache of managing the applications. We need to wait and watch for companies like SugarCRM, which is an opensource and an on-demand vendor.
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