Wednesday, July 25, 2007

SAP's gamble on open-source : NetWeaver!




It is always exciting when a giant, respected technology opens its doors up to the community. Like SUN's JVM and other open-source communities, SAP risks some proprietary knowledge and sales erosion for the chance at employing the world to develop from its platform and make the platform a standard.
Creating open-source is a contract between the owner and a community of developers. The owner maintains a forum of standards and supports the third party development of its products. However, the critical strategy is in creating the kernel of the product that is to remain proprietary and to alter the pricing strategies that allow for sufficient future revenue streams. SUN's attempt to promote JAVA as a standard was successful, but its revenue generation is insufficient to keep the company solvent or the community demand for other SUN products high.
Does SAP have the right idea?

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