Ovum: Challenges for ISVs with open source in mobile phones

According to Adam Leach, principal analyst at Ovum, with both Nokia and Google already choosing an open source model for their mobile platforms over the past twelve months, the pressure is on independent software vendors (ISVs) in the mobile market to adopt an open source strategy.

Leach said ISVs need to be familiar with open source environments to be able to respond to demands to integrate customers’ solutions into those environments. In addition, OEMs and operators will start to expect similar levels of transparency and collaboration on key areas of interest for them.

“As a result, ISVs will need to evolve their business practices to meet these new expectations, in some cases embracing an open source business model,” he claimed.

“From a product perspective, adopting an open source strategy can involve as little as deciding to use an open source component, through treating open source as a supplier, to deciding to adopt an open source license for the entire product

“In both instances the risks associated with the use of open source need to be managed.”

Leach said adopting an open source license for an entire product development for a company that does not derive its main revenues from software royalty involves less risk.

“Google, for example, make its money through advertising, not selling software; Sun Microsystems makes most of its money through selling servers, not software; equally, Nokia’s business is based on hardware sales. So open sourcing products for these companies poses fewer issues and does not require completely re-engineering their businesses,” he said.

He said a pure software vendor that derives all of its revenues from software licensing; the move towards a complete open source strategy has a greater amount of risk associated with it.

“Vendors looking to pursue this strategy will need to consider which aspects of the product offering will derive income,” said Leach.

He claimed that if the component is strategically important to the product and there is sufficient technology knowledge of the domain within the company then a direct approach should be considered by getting involved with the open source project and contributing to its ongoing development.