Nick has found two articles from news.com, both published in 2005 but still very relevant to our point of view, to define new possible trends concerning the way of licencing software (by the way: generally speaking, not just for open source components).

Open source reshaping services market

Seeking services revenue is not restricted to the open-source crowd. With corporate spending on software restrained, established providers of proprietary software increasingly rely on ongoing revenues, such as maintenance rather than new license sales. In an earnings call earlier this year, Oracle CEO Larry Ellison touted the company’s “subscription” maintenance business as “an extremely high-margin business.” […]

JBoss founder and CEO Marc Fleury said that his company’s support structure will ultimately give it an advantage over others crowding into the field. He said scaling up its support offerings so that the company can handle many clients with large-scale applications is one of the biggest challenges the company faces. “Customers want to know their provider is viable,” Fleury said. “Getting support directly from the vendor who wrote the software is a better model…What’s the credibility (of others)?”

Open-source companies chase steady money

Many industry veterans argue that open source is accelerating a shift that has been going on in the software industry for some time: Rather than hinge their business on big-ticket license contracts, software providers increasingly rely on recurring maintenance revenue. […]

And because most open-source tools don’t have license fees attached to them, commercial open-source companies are often forced to build their businesses around services revenue, in the form of support, up-front installation or training. With this model, purchasing software is more like committing to a yearlong cell phone contract–and less like buying a car with a large cash outlay and making regular payments later. […]

“Larry (Ellison) is buying everything he can get his hands on to consolidate the (business applications) industry. He believes that innovation in software is over. It’s all about maintenance revenue,” Goodnight said. […]

Analysts say that open-source software requires an industry of services companies for its adoption to spread. Some open-source products have been created by a relatively small group of programmers and do not have round-the-clock support organizations. Corporate customers require some sort of vendor to rely upon. […]

Also, a shift in buying habits is fueling interest in annuity-style contracts between providers and corporate customers. Increasingly savvy customers are shying away from committing to large-scale projects that consume millions of dollars and take years to complete.

“Enterprise customers, in particular, continue to be willing to pay fair and reasonable prices for software. The difference with the old days is that they don’t want to pay for it all up front,” Mitchell Kertzman, partner at venture capital firm Hummer Winblad and former CEO of Sybase, said at a conference in February. “They want to pay for it as they realize the value and get return on investment.” […]

“From a management point of view, if you do it correctly you can build a better forecast into expenses and revenue flow,” relies on subscriptions. Instead of spending the end of every said Matthew Szulik, CEO of Linux distributor Red Hat, which quarter trying to land big deals, the subscription approach “allows you to focus on strategic issues,” he said.

[via CICLOPS]

New raw images from Cassini have captured breathtaking views of Saturn’s splendid moons and rings, including distant shots of Enceladus and its icy plumes.

[via Marc, again]

Metric driven management from Scott Maxwell, a difficult but so strategic part of leadership, specially when your company is growing. Very interesting.

When you can accurately predict your results in each operating unit, it means less risk and a greater opportunity to scale your company without blowing your capital (missed quarters get more and more expensive as you grow!). Being able to make accurate predictions also means that:

• You have an operating model (not just a collection of people), which allows you to scale better,
• You understand the key drivers of output in your operating model,
• You are consistently managing the unit to your operating model,
• You have a set of early warning signs (your key drivers) that you can focus more attention on when they get below certain thresholds (i.e., it helps you to know where to spend your time),
• You have a set of measures that you can benchmark against other companies to understand where you have opportunities to move to best practices, and
• You know when you need to add staff or other resources well before you get caught short.

Finally, the understanding of the above gives you a solid platform for experimenting with new approaches and accurately evaluating the effectiveness of the new approaches (thereby allowing you to kill the approaches that don’t work and expanding the approaches that do work).

Over time, the nature of emerging growth companies is that they move from simpler approaches to more sophisticated approaches (more specialists, more channels of distribution, more products, more marketing channels, more approaches to customer service) and you want to make sure that you continue to evolve in the right direction (note: this is not an argument to get more sophisticated as an end to itself, just that getting more sophisticated leads to better operating results as you growl…you clearly need to keep your operation as simple as possible).

[via Mercer]

Wow, it seems that we are not the only one in ecenter solutions thinking that Zurich is a *great* city :-)

How it works

The analysis is part of an annual World-wide Quality of Living Survey, covering more than 350 cities, to help governments and multinational companies place employees on international assignments. Each city is based on an evaluation of 39 criteria, including political, social, economic and environmental factors, personal safety and health, education, transport, and other public services. Cities are ranked against New York as the base city, which has an index score of 100.

Ranking

Zurich ranks as the world’s top city for quality of living, according to a survey by Mercer Human Resource Consulting. The city scores 108.2 and is only marginally ahead of Geneva, which scores 108.1, while Vancouver follows in third place with a score of 107.7. In contrast, Baghdad is the lowest ranking city in the survey, scoring just 14.5.

Europe and Middle East

Almost half the top 30 scoring cities are in Western Europe. In this region, Vienna follows Zurich and Geneva in 4th position with a score of 107.5. Other highly-rated cities include Düsseldorf (107.2), Frankfurt (107.0) and Munich (106.8) in positions 6, 7 and 8 respectively. Athens remains the lowest scoring city in Western Europe, scoring 86.8 at position 79.

London is the UK’s highest ranking city and is stable at position 39 (score 101.2). The two other UK cities covered in the survey are Birmingham and Glasgow, which both score 98.3 and climb one place to joint 55th position.

Dublin has dropped two places to 24th position, scoring 103.8, mainly due to increased traffic congestion.

As predicted, cities in Eastern Europe such as Budapest, Ljubljana, Prague, Vilnius, Tallinn and Warsaw continue to benefit from incremental score increases and are gradually climbing the rankings.

Americas

Honolulu, the highest ranking city in the U.S., drops two positions to 27th with a score of 103.3. San Francisco remains at 28th position and scores 103.2. Boston, Washington, Chicago and Portland follow in positions 36, 41, 41 and 43 respectively (scores 101.9, 100.4, 100.4 and 100.3) while Houston remains the lowest ranking city in the U.S. at position 68 (score 95.4). Overall, U.S. cities continue to slip slightly or remain stable in the rankings, except Chicago which has moved up 11 places due to decreased crime rates.

Asia Pacific

Auckland and Wellington have both moved up the rankings from 8th to 5th and 14th to 12th places respectively, mainly due to strong internal stability relative to other cities, while Sydney remains at position 9 with a score of 106.5.

In Asia, Singapore ranks 34th (score 102.5) followed by Tokyo, Japan’s highest scoring city, at position 35 (score 102.3). Hong Kong’s modern and efficient infrastructure, including its airport (which is considered one of best in the world), has pushed it up from 70th to 68th position with a score of 95.4.

The top-ranking city in China is Shanghai in 103rd place (score 80.1).