Even as Forrester Research predicts a 3 percent drop in global information technology revenues, as reported by The Register, investment bank Goldman Sachs is piling on the woe it promulgated in an earlier report that CNET covered with a new report entitled "IT Spending Survey: Mapping 2009."
As detailed in the report, incumbent vendors are about to see their sacrosanct maintenance revenue streams get pillaged:
Accounting for more than 50 percent of revenues at vendors such as Oracle, this is going to be painful, indeed, though the report also calls out that some of the bigger brand names are likely to weather the downturn better than most.
Even so, my company, and others that I advise, are seeing a flight from expensive maintenance contracts to open-source alternatives. At least half of my pipeline is filled with existing customers looking to dump their maintenance contracts with incumbent vendors.
Why? Because a solid open-source product can easily cost 10 percent of a proprietary vendor's maintenance contract, while delivering equivalent or better functionality. While any change will likely necessitate some third-party consulting--the No. 1 target for the budget ax in 2009--the cost advantages of doing this can still be substantial.
That said, any benefits from new projects must be near-immediate:… Read more