This just arrived from Shef-lug. I probably won't be able to go along to it (unfortunately -- it would be interesting to observe the audience).

However, maybe someone might manage it ...

I was going to froward it to Clug too, but can't find their address for the moment ...

Cheers, Ted.

-----FW: 20040114220107.GA1354@lagodelbonso.demon.co.uk-----

Date: Wed, 14 Jan 2004 22:01:07 +0000 Sender: shef-lug-admin@list.sheflug.org.uk From: Simon Brown simon@cliffestones.demon.co.uk To: "shef-lug@list.sheflug.org.uk" shef-lug@list.sheflug.org.uk Subject: [Sheflug] The Economics of Open Source Software - Prospects, Pitfalls and Politics [tbm@cyrius.com]

From debian-uk, food for thought?

MICROSOFT RESEARCH LECTURE This is a PUBLIC lecture ________________________________

TITLE: The Economics of Open Source Software - Prospects, Pitfalls and Politics SPEAKER: Dr Stefan Kooths INSTITUTION: University of Muenster HOST: Alexander Braendle, University Relations DATE: 15 January 2004 TIME: 13:30 - 14:30 MEETING ROOM: Lecture Theatre ADDRESS: Microsoft Research Ltd, 7 J J Thomson Avenue (Off Madingley Road), Cambridge

Open Source Software does not represent a suitable alternative to the commercial software market from an economic point of view, neither in terms of creating value-added nor in terms of economic efficiency. OSS does not create any new value-added potential, and offers only a fraction of the opportunities of the commercial market. The impact of OSS on sales and employment are therefore less than the effects of commercial software. Furthermore the de facto free availability of GPL-licensed software, and hence the lack of a market price, have far-reaching economic consequences that are elaborated in the presentation. As far as packaged software is concerned its free availability very much limits the creation of profits, income, jobs or taxes. The loss of turnover in the area of software sales cannot be fully recovered with services linked to the software. So-called complementary OSS-business models work in the smaller customized software sector only. The incomes earned there are substitutive and not additional to those created in the commercial software sector. The lack of cost-reflecting prices for GPL-licensed standard software also has consequences for the market process as the pricing mechanism is associated with an important information and coordination function in a market economy. If there is no price, and hence no decisive guide figure for a market, it is, for example, more difficult to identify customer requirements. Further problems can be identified when it comes to the allocation of resources, productivity-oriented factor compensation and incentives for innovations. The lower value-added potential and the reduced efficiency of coordination are weighty economic arguments. They demonstrate quite clearly that the promotion of open-source software cannot be an economically justifiable role for the state.

___________________________________________________________________

Sheffield Linux User's Group - http://www.sheflug.co.uk/mailfaq.html

GNU the choice of a complete generation.

--------------End of forwarded message-------------------------

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