MySQL Case Study

MySQL is an open source company with 320 employees and sales of almost $40 million in 2005. (Wittig, C., 2006) MySQL has become extremely well-known and is often referred to in the same sentence as its closed source competitors Microsoft and Oracle. (Wittig, C., 2006) With MySQL growing all the time and 15% of US businesses with 100 – 1000 employees using open source applications (Fitzgerald, M., 2006) it is necessary to consider the potential advantages and, of course, disadvantages which this technology could bring to a business.

Open source software is not just software which gives you access to the code. In order to be truly regarded as “open source” it must conform to a number of principles including free distribution, access to a source code, must allow modifications and derived works, there must be no discrimination against any persons or groups and it must also be technology neutral. (www.opensource.org/) From simply considering the definition of open source it is clear to see that a number of advantages exist as there are no licensing costs, it provides flexibility and can be used by individuals or by companies. It is now necessary to consider such advantages in greater detail.

One of the main advantages of open source software in business is that the core software is free and this is a major benefit for businesses, particularly those who are just starting out, as it cuts down on their initial capital outlay. (Bloch, M., 2007) This point can be more fully illustrated by the fact that the first users of MySQL were internet-enabled start-up companies which used this software in order to get their business off the ground. (Wittig, C., 2006)

A further advantage of open source software is that it is flexible as it allows users to adapt and modify the software (www.opensource.org/) in order to improve it and adapt it to their business needs. Again this point can be clearly illustrated by considering the situation of MySQL as their initial customers valued the opportunity this software provided as they were able to change parts of the software in order to differentiate themselves in their own markets. (Wittig, C., 2006) This is a major advantage for businesses because if they purchase closed source software i.e. Microsoft Office they are unable to make any modifications and are left with a package which may not satisfy their needs fully.

Furthermore, open source software is readily available over the internet which is advantageous to businesses as they can simply download the software with no hassle and do not have to enter into complicated license agreements which force the user to count, track and monitor for license compliance. (Williams et al, 2005) This has even been identified by large closed source companies such as Oracle as an advantage as they state that this is one of the reasons why MySQL software is impacting the competitive environment in which they operate. (Wittig, C., 2006) It is therefore clear that this must be a characteristic which is valued by businesses as it simplifies the day-to-day running of the business and is one less issue which they have to monitor and control.

Independence is also a crucial factor as companies are not tied to a single vendor and are not forced to change their system if they do not want to. (Bloch, M., 2006) When Microsoft launches a new version of Windows it phases out support for older versions, forcing customers to upgrade even if it is not necessary for their business needs whereas older versions of open source software continue to be supported in the open source community. (Scavo, F., 2007)

However, disadvantages are also present and these must now be considered in order to complete the picture.

Firstly, businesses must be aware of the fact that projects can die and they may be left with a programme which no-one is working on to improve. (Bloch, M., 2007) This is a concern to any user but is of particular concern to a business because they may find that the software they have spent time implementing is no longer available or is basically obsolete. This would mean that competitors could overtake them as they would have to waste time changing their systems. Although businesses may expect that this would not be a problem when dealing with a reputable open source company such as MySQL this is a dangerous opinion to hold as closed source companies such as IBM and Oracle have started to purchase open source competitors. (Wittig, C., 2006) This means that even if the original company wishes to develop software further the new owners are likely to have made the purchase in order to prevent competition. This situation has already occurred as after IBM acquired Gluecode it began to scale back Gluecode’s production plans. (Wittig, C., 2006) It is surely not a coincidence given that Gluecode’s software was in direct competition with two of IBM’s products.

A further disadvantage is that the support which is available tends to be through forums only or may involve the customer having to pay a subscription. (Bloch, M, 2007) This is problematic within business as forums can be unreliable and one must use the information with caution as there is often no way of knowing the credentials of those people who are in the forums. Furthermore, one may find that their business is dependent upon people actually responding to questions posed in forums and this is risky as no obligation on people to do so. This then leads to customers having to pay for support as witnessed with the MySQL Network (Wittig, C., 2006) and surely it can be argued that this defeats the purpose of open source software because in order to make full use of the software a payment is still required.

Furthermore, Oracle, Microsoft and IBM have started to lower prices in order to match MySQL’s free or low cost offers (Wittig, C., 2006) and this means that businesses may now be able to obtain a more familiar product for a similar cost and therefore the cost benefit of open source software has been lost.

In conclusion, open source software holds a number of advantages for businesses in terms of price, easy access and flexibility and is particularly advantageous to new companies who are looking to minimise start up costs and do not want to enter into complex license agreements. However, it is necessary to recognise that companies like IBM are not willing to sit back and lose custom and so their tactics are likely to harm the development of open source software.









REFERENCES
Bloch, M., Open Source Software in Online Business, www.tamingthebeast.net/articles5/open-source-software.htm, 2007, accessed 3 December 2007

Fitzgerald, M., Something for Nothing: Cool New Software Free of Charge, 2006

Scavo, F., Key Advantage of Open Source is Not Cost Savings, www.computereconomics.com/article.sfm?id=1043, accessed 3 December 2007

The Open Source Initiative, www.opensource.org/, accessed 3 December 2007

Williams et al, The Advantages of Adopting Open Source Software, 2005, http://www.informit.com/articles/article.aspx?p=376255&rl=1, accessed 6 December 2007

Wittig, C., MySQL Case Study, 2006