Ian’s Blog on Open Source Marketing

The End of it
Scrooge changes his life and reverts to the generous, kind-hearted soul he was in his youth before the death of Fan. He anonymously sends the Cratchits the biggest turkey in the butcher shop, meets the charity workers to pledge an unspecified but impressive amount of money, and spends Christmas Day with Fred and his wife.

The next day Scrooge catches his clerk arriving late and pretends to be his old miserly self, before revealing his new person to an astonished Cratchit. He assists Bob and his family, becomes an adopted uncle to Tiny Tim, and gains a reputation as a kind and generous man who embodies the spirit of Christmas in his life.

I believe that this time next year when we look back at 2009 we will see it as a positive year. Times like this turn us all into what my friend Nancy Garrity calls “Econnoisseurs”. The Urban Dictionary defines econnoisseur as “One who insists on the highest quality at the lowest price.”

After the tech bubble burst every company needed to find a way to do more with less. Lee Thompson of E*Trade discussed in Business Week how by using open source software, running on less expensive hardware, he saved $13m per year going from 2002 to 2003. Open Source with commercial Service Level Agreements in a typical enterprise configuration saves between 89% to 96% for Enterprise Content Management.

In times of recession companies can’t just do business as usual. They need to look at what they do, look at what is really necessary, innovate, simplify and cut out un-necessary costs. This creates great software companies and enterprises that are great users of software. Out of the bubble came great companies such as Google, Amazon and eBay that benefit people every day of the week. Out of this recession Open Source and Cloud-Based Web 2.0 companies will emerge as similar powerhouses that benefit people every day of the week.

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The Year of the Compliance – I can’t afford not to be compliant but how can I afford to be compliant

With every new year comes a look back at last year. The current monetary crisis will reignite regulation, governance and compliance concerns. What this crisis has taught us is that markets are global and local regulations cannot protect global markets. New global regulations will come into place and need to be enforced globally. From a content management perspective this means:

• Audit everything and everybody in everything they do in every region
• Audit not just documents but also email, instant messages and also social networking when it relates to business
• Audit not just additions or changes but also access
• Enable rapid searching and eDiscovery across not one but all repositories of all types that a person may have accessed
• Make it simple to show the process and rules you have been using and the change control in your systems including your websites

This will require open standards and architectures to support these new requirements and avoid costly highly damaging eDiscovery requests. This “mass” compliance will require systems that are:

• Low cost
• Simple for all users to use
• Simple to rollout on a large scale
• Based on open standards for integration

Then you can address the question in a rational way:

“Can I afford not to be compliant and also how can I afford to be compliant

Prediction for 2009: 2009 will see a resurgence of compliance and an audit everything approach from a content management perspective. This will further drive open standards adoption to enable cross repository access and analysis offering commoditization driving down the cost of content compliance.

The Year of the Consumerization of Buying Enterprise Software – Discover, Try, Buy - with the Wisdom of Crowds

In the 1990’s there was a lack of freely available product information and the only way to access and try an enterprise product was through the sales division of that company. The world has changed and the internet has made:

• Information on a product freely available
• A product download freely available
• Advice on that product freely available
• The opinions of masses of users freely available

The credit crunch is forcing companies to look for value – not just in the cost of software but in the way they evaluate software. Today, to discover a product you go to Google. To get opinion and information you rely on the wisdom of crowds. People are turning away from “the complexity machine” and rewarding simplicity, value and transparency. Tools such as Google trends show in real-time market trends. Masses of blogs offer up-to-date information. Ranking and access allows good information to rise to the top. This is what has driven the success of Wikipedia vs. Encyclopedia Britannica.

Prediction for 2009: Enterprise software acquisition will be consumerized. Companies will “Search” the web, trusted blogs and forums, “Try” the software via download or in the cloud, and ‘Buy” if they like it, typically through a subscription model.

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The Ghost of Christmas Present
The “Ghost of Christmas Present”, a great genial man in a green coat lined with fur, takes scrooge through the bustling streets of London on the current Christmas morning, sprinkling the essence of Christmas onto the happy populace. They observe the meager but happy Christmas celebrations of the Cratchit family and the sweet nature of their “forgotten” son Tiny Tim, and when the Spirit foretells an early death for the child if things remain unchanged.

2. The Death of Long Term ROI Studies and “I’ve started so I’ll finish”

The traditional way to sell enterprise software was to find a “killer application” and do “Value-Based Selling”. The number of times I have heard phrases such as, “Our software will reduce costs in your supply chain by 1% over 5 years therefore it is perfectly reasonable to pay a mere $1m for the software”.  Long-term ROI is dead. Customers care about the cost now and the benefit over the next quarter.

As in “A Christmas Carol”, the “Ghost of Christmas Present” reflects what I have heard more and more recently, about enterprise content management projects that are very late, and more importantly in the current economic climate, very over-budget – if things remain unchanged the projects will have an early death or be replaced by a lower cost alternative that is simple to use and easy to rollout.

Prediction for 2009: Long-term ROI studies are dead. Customers care about the cost now and the benefit over the next quarter. Companies will review current “in-flight” projects and realize it is cheaper to scrap them and move to a more cost effective alternative than to blindly carry on.

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