Open source of opportunity

Open source and its perceived threat to commercial off-the-shelf software is providing contractors who know where to look with a raft of opportunities.

Last December, the information service on public IT spending - e-Gov Monitor Weekly - revealed the UK Government had earmarked £675m for public sector investment at the same time the European Union announced a fresh drive to promote the development of e-Government by 2005.

The aim of this spending, according to e-Gov, was to help council deliver local improvements more quickly and cheaply than by using expensive existing processes, including the buying of commercial "lock-in" software.

About half of the figure - £300m worth of public sector business - is potentially there for open source software (OSS) consultants and contractors to gain some significant deals, according to the business report publisher VNUnet.

The typical services that consultants offer are: project management, software development, market research, systems' design, risk management, security, migration, and support.

Open source consultant Lee Denison says "adapting your mentality, adopting the open source culture and becoming an integral part of the OSS community" is crucial to achieving success in the marketplace.

Denison feels no matter what you offer you clients, it is crucial you can provide a high level of support. "It builds confidence in your service offering, and this trust will in turn enhance your reputation and marketability," he says.

The range of applications for open source projects is huge, ranging from e-procurement to content management solutions.

Tim Parkin, managing director of Pollenation Internet, says there aren't many jobs with an open source stamp on them, so independent OSS contractors need to provide niche services.

Security is a serious concern, particularly following the much publicised spate of virus attacks. However, the key attraction of open source solutions is based upon cost-efficiency. Costly, restrictive and rigid licensing agreements are usually axed first.

"Cost cutting can lead to open source adoption - probably for the wrong reasons," Parkin comments.

This has begun the slow evangelisation of open source.

He adds: "Microsoft's licensing furore has benefited open source immensely. And even though the dot-com decline did kill the jobs market considerably; we're starting to see many niche jobs being advertised."

Open source clients themselves benefit from the knowledge that an open source contractor is not indispensable.

"Unlike proprietary software, if I disappear off the planet, they can still find someone to support it," says Denison.

Flexibility is drawn from open source's licence-free regime.

"There are no obstacles, or lock-ins, to any future systems' development. Therefore, contractors' services must be just as flexible to save the client time and money," Denison says. "Sometimes, clients still expect contractors to additionally work on the development of proprietary software projects."

Miles Barr, director of consulting firm, Runtime Collective, offers advice to those wishing to target government and other public sector projects (e.g. the Government's Interoperability Framework, e-GIF: which outlines a system for adopting Internet and world wide web standards for all government systems).

He says it is a good idea to "get the code, learn it and then perhaps put out an extension."

You then need to approach those who have yet to adopt it, he adds. Present it to the right people in order to try and get a "piece of the pie."

He recommends APLAWS - Accessible & Personalised Local Authority Websites - as a potential starting point.

In contrast, companies within the private sector would not typically hire a contractor, preferring the in-house development of their open source solutions. "You can only make money here," Barr states, "by offering support services."

Andrew Veitch, CEO of Logical Progression - a consultancy specialising in open source - says mailing lists and OSS conferences can attract potential clients.

"These ensure that clients are aware of your services and help to build your reputation within the marketplace," he said.

By speaking at conferences you are seen as an expert within your field, stimulating interest in your skills and services. Conferences and seminars usually provide ample networking opportunities too.

Being seen is a key element of any marketing strategy. Veitch argues that open source software itself adds to this element of visibility, because your code is available for everyone to see.

The core advantage of open source projects is that "clients approach you, and even a small project will have around 20,000 downloads per month."

So even a small number of users can generate a large amount of business to strengthen your portfolio.

So what shouldn't you do?

"Don't bother to re-invent the wheel... there are already far too many out there", advises David Fisher - marketing director of GB-Direct, a training and open source consultancy. "You should also avoid assuming that proprietary maxims apply to OSS projects," he says.

Clients are attracted by the compressed release and test cycles, which must form an integral part of any offering.

With OSS there is a tendency for what Fisher calls "technical purism": the pursuit of "elegant solutions with higher upfront costs and lower maintenance costs, even when the commercial pressure is simply to ship something acceptable by an absolute deadline," he explains.

Broadcasting, defence, the media and music industries are cited as other areas of potential growth within the OSS marketplace. However, most consultancies advise focusing on local and national government projects.

Public bodies are keen to get their e-procurement strategies in place. open source solutions allow them to build components that are adaptable to different types of applications and platforms, providing a greater level of integration than proprietary systems.

OSS contractors may find some equally lucrative pickings in the financial sector, because it spends more on ICT projects than any other sector of the economy.

The defence sector, Denison believes, is more geared to the larger corporates. Companies within this sector consult him because he knows the market players.

They are, however, unlikely to hire him as an individual contractor. So you must know your market and tailor your services to demand.

Not everyone benefits. Many OSS contractors will still have to work on COTS projects, while working on open source coding in their own time.

The fact it is offered free of charge, however, continues to challenge traditional proprietary vendors like Microsoft.

The trend towards open source services and applications is revolutionising the IT business away from commercial software providers. There is some resistance by the big players, but the smaller contractors stand to benefit from many opportunities on the sidelines.