http://ce.tekrati.com/research/News.asp?id=7614
To those familiar with Linux by virtue of having used it either at university or in a small business environment, all of the claims in the article will resonate with your prior experience. The crux of the argument is that open source by virtue of its nature brings enormous pricing pressure on existing enterprise software products. However, softwares that are products of this movement are often more innovative, robust and quite simply better than those canned by software companies. However IDC claims in its study that the impact that the movement has on innovation far outweighs that on pricing pressure.
This is especially true in an economy that is more geared towards generating revenues from services. As companies move from acquiring new customers to sell their products to, to retaining existing customers, the emphasis shifts from product development to delivering innovative services. It is in this environment that having an "open source" paradigm where users have the ability to not just use the product but also improve it and let all other users benefit from the improvement. By making continual user community-driven improvement the very core premise of its existence the open source movement has not only survived the might of giant companies such as Microsoft but continues to prosper.
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