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Economic Crisis Will Eliminate Open Source

Posted by CmdrTaco on Wednesday October 22, @09:53AM
from the why-so-gloomy dept.
An anonymous reader writes "The economic crisis will ultimately eliminate open source projects and the 'Web 2.0 free economy,' says Andrew Keen, author of The Cult of the Amateur. Along with the economic downturn and record job loss, he says, we will see the elimination of projects including Wikipedia, CNN's iReport, and much of the blogosphere. Instead of users offering their services 'for free,' he says, we're about to see a 'sharp cultural shift in our attitude toward the economic value of our labor' and a rise of online media businesses that reward their contributors with cash. Companies that will survive, he says, include Hulu, iTunes, and Mahalo. 'The hungry and cold unemployed masses aren't going to continue giving away their intellectual labor on the Internet in the speculative hope that they might get some "back end" revenue,' says Keen."
troll money yeahright fud news
news money
story

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[+] Linux: Red Hat CEO Says Economic Crisis Favors Open Source 191 comments
arashtamere writes "Red Hat president and CEO Jim Whitehurst predicts the enterprise open source software business will emerge from the economic crisis stronger than the proprietary market. 'I've had a couple of conversations with CIOs who said, "We're a Microsoft shop and we don't use any open source whatsoever, but we're already getting pressure to reduce our operating costs and we need you to help put together a plan for us to... use open source to reduce our costs." And we've had other customers literally looking at ripping and replacing WebLogic or WebSphere for JBoss ... I think we'll know in about six to nine months but there is no question that open source will come out of this in relatively better shape than our proprietary competitors,' he told Computerworld."
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  • Yeah right. (Score:5, Insightful)

    by Emb3rz (1210286) on Wednesday October 22, @09:55AM (#25468433)
    Advertising + Blogs = continuance of our current model.
  • by wud (709053) on Wednesday October 22, @09:56AM (#25468447) Homepage Journal
    Can someone please mod this story as flame bait?
  • Just like... (Score:5, Insightful)

    by i kan reed (749298) on Wednesday October 22, @09:56AM (#25468459)

    The end of the dot-com bubble killed linux, stifled production of php sites, and made people stop sending non-commercial email. Those things all went away, right?

  • Shakeout more likely (Score:5, Interesting)

    by Anonymous Coward on Wednesday October 22, @09:57AM (#25468469)

    All you may see is a shakeout of commercial Web 2.0 ventures that were going nowhere and were only being made a fuss of "because it's web 2.0". The same hype that drove the original dotcom bubble. A shakeout of dodgy commercial ventures, yes, Opensource on the other hand is likely to get stronger in this climate.

  • This is just wrong (Score:5, Insightful)

    by Finallyjoined!!! (1158431) on Wednesday October 22, @09:57AM (#25468473)

    hungry and cold unemployed masses

    They aren't the people contributing. The guy is an 1d.10T

  • Money? (Score:5, Insightful)

    by qoncept (599709) <`jgould' `at' `bellsouth.net'> on Wednesday October 22, @09:57AM (#25468481) Homepage
    Since when is user delivered content driven by hopes of profit? These people are driven by wanting their voices heard and to some extent wanting to be known. If these sites fail, it will be because the site itself isn't profitable, not because their users, who they could care less about, aren't making money off it.
  • by dhalgren99 (708333) on Wednesday October 22, @09:58AM (#25468491) Homepage

    Wait...I thought the Economic Crisis was GOOD for open source?

    http://linux.slashdot.org/article.pl?sid=08/10/21/0116221 [slashdot.org]

  • Odd ... (Score:5, Funny)

    by zehaeva (1136559) <zehaeva+slashdot@nOspam.gmail.com> on Wednesday October 22, @09:58AM (#25468493)
    Funny, I just passed by some article someplace saying the exact opposite. mmm where was that?
  • *laughs* (Score:5, Insightful)

    by RaigetheFury (1000827) on Wednesday October 22, @09:59AM (#25468503)

    This guy is under the assumption everyone who works on open source technology is after financial gain. Very short sighted

  • by beldon (79695) * <beldon.gmail@com> on Wednesday October 22, @10:00AM (#25468523)
    Perhaps it could be said that all the money in FOSS development made developers used to a higher standard of living, but that assumes that getting paid necessarily negates non-monetary rewards. That's a flimsy argument and doesn't bear very close scrutiny. It also assumes traditional scarcity rules have taken over the software industry. If anything, artificial scarcity is even harder to maintain during harder financial times.

    This is nothing but a re-hash of Bill Gates' screed against the Homebrew Computer Club about how good software will never be created without paid programmers. It was wrong in then, and it's still wrong.

  • by uchian (454825) on Wednesday October 22, @10:00AM (#25468537) Homepage
    Surely with more people sitting at home, unemployed, with nothing to do other than look for a job, and desperate to make their cv stand out more than everyone else in there situation, the amount of speculative work produced may in fact rise?
  • yeah right (Score:5, Insightful)

    by ignatus (669972) on Wednesday October 22, @10:00AM (#25468547)
    "The hungry and cold unemployed masses aren't going to continue giving away their intellectual labor on the Internet in the speculative hope that they might get some 'back end' revenue," says Keen."

    No, the hungry and cold unemployed IT guys will invest their time into open source projects, because it 's a good way to keep their curriculum in shape. And the hungry and cold unemployed will keep using linkedin and facebook to extend their network inorde to find a job. And ofcourse, businesses in difficulties will stop throwing money away for overrated software when they can get a free and open equivalent.

    I think a crisis will definately have a positive impact on open source and web 2.0

  • by JamesP (688957) on Wednesday October 22, @10:04AM (#25468605)

    LET THEM BE

    Every time an idiot says something that is not going to affect you directly, let it be!

    Trust me, do you really wanna do business with people who believe this?? Do you want to be an employee who believe these things?

    But guess what, you're right and they're wrong!

    If my employer has a stupid idea, I either recommend against (and they usually listen) or I quit or I shut up.

    If my competitor has a stupid idea, I just say "GREAT!!! GO AHEAD!!"

  • by olddotter (638430) on Wednesday October 22, @10:04AM (#25468615) Homepage

    Most economic down turns spawn innovation. People no longer have nice cushy jobs soaking up their days. These people no longer have anything to lose (their job) by trying that great idea to build a better mouse trap. Some of them invent things really cool and successful.

    Linux exists because Linus couldn't afford a real unix server, for example.

    If the downturn turns into a depression, then no one will have money to pay anyone for services anyway. So the huddled masses will probably be bartering their services and still contribute to open source, because its the cheapest way for them to get the tools they need.

    Take some money and buy a clue.

  • by eln (21727) on Wednesday October 22, @10:07AM (#25468671)

    His whole premise is deeply flawed. People don't post stuff on these sites because they are so fat and happy that they just can't find anything better to do with their time. They do it because they want to be known for something, or they want to show off, or because they just want to contribute to a large project. None of these things are really affected by the economy.

    Okay, some people might contribute less because they have to take 2 jobs or something, but that's a temporary phenomenon. For most people, their jobs will still occupy about 8 hours a day, and that still leaves several hours every day for farting around on the Internet, which often includes submitting content to these so-called "Open Source" content sites.

    User-generated content was there at the beginning of the Web, and it isn't going anywhere anytime soon. Maybe CNN will toss the iReport thing, but not because of the economic downturn. Sure, they might decide that now is a good time to end it because they have a convenient excuse, but the real reason to end it is because it's a cesspool of mouth breathers posting pictures of their cats and saying the same kind of mindless garbage that gets posted to CNN's Political Ticker. The iReport site doesn't do much more than allow CNN to post stories that would be of no more than local interest otherwise (ooh, a car on fire! Alert the media!).

    As for Wikipedia, it has deep and fundamental flaws that may or may not eventually lead to its downfall, but the economic condition isn't going to change that one way or the other.

  • by MikeRT (947531) on Wednesday October 22, @10:12AM (#25468761) Homepage

    It'll be harder to argue for expensive new Oracle, SAP and similar licenses. Oh sure, that database that's just a large bit bucket will cost your business a few hundred thousand dollars to implement! Just lay off a worker or two to fit it into your budget.

    Bullshit.

    If anything, it'll be easier now to justify using OSS because the ridiculous cost of most enterprise software will become more apparent to the customers. I predict that if this continues, you'll see more companies forced to use OSS out of necessity simply because they cannot justify buying the extremely expensive licenses for proprietary software.

    On a related note, Keen is one of those guys who laments the loss of our "high culture." The dude is a day late and a dollar short in his whole analysis. Western high culture started taking a nose dive 100 years ago with the rise of political populism. If anything will help to bring it back, it'll be putting better, cheaper tools into the hands of content producers so that they can do more work with less effort.