Make And Enquiry

Open source firms 'more valuable strategically'

30th November 2009

Software that is open source, such as MySQL, faces a discrepancy between its financial and strategic value.

This is the claim made by Ashlee Vance, writing for the New York Times.

She used MySQL as an example, pointing out that despite the "astronomical" number of downloads it had, sales never reached the same level.

The dispute over how much MySQL is worth is the key issue between Oracle, which recently bought MySQL owner Sun, and the European Union (EU).

EU regulators fear that Oracle may try to keep business for its other products by not working to make MySQL any better.

Ms Vance said that the issue highlights the fact that open source firms have "societal and strategic importance (that) far exceeds their financial value as operating businesses".

The issue has also been flagged up recently by iTWire writer David Williams, who cited arguments from Microsoft and analyst Josh Greenbaum to say that there is no incentive to open source developers to improve the product.

Mr Williams invited debate on the issue and observed: "In part, open source software isn't about money."
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