Open Source essentially means free, unlimited access to the source code of a piece of software. Nearly a decade ago, a bout of strong enthusiasm began around the open source movement. This movement centered on the philosophy that software should be open – meaning that it is freely modifiable for those who want to improve it for the benefit of the community. The best of these open source projects tend to have a leader or vision for the software’s use. A good example of this has been the Linux operating system which now dominates high performance server applications. Open Source has made the market more competitive, particularly for companies like Microsoft, which focus on licensing software.  However, we are now seeing is a shift in the model.

Traditionally, software has been an intellectual asset that is purchased and licensed.  Open Source has dramatically changed the standards in the marketplace on software pricing making it a compelling alternative.  No matter what license model, a business will need to install the software, and hire IT administrators to monitor and manage the programs.   While the cost of licensing software has dropped through this movement, the need for competent people and hardware demanded continued investment.

Cloud computing, however, is changing the software landscape. When you look at businesses trying to be competitive, the majority of businesses care less about software  and care more about the total cost to get their business to run efficiently.  The software license was only one aspect of IT investment.  Before the Cloud, Open Source was a great offer for companies that had been traditionally doing on-premise work. If they had a data center, and IT administrator, etc, the impact open source had was to drive costs down. It worked because the costs were being borne down by the open source community.

The shift to Cloud has changed the way we consume software;  it is more about the services offered by companies that provide software as a service (SaaS).   That has shifted the cost structure significantly and now businesses are spending less on traditional IT infrastructure.

In this changing world, we’re now more focused on connecting to platforms and the services we need.  This is the space where NetSuite makes a compelling offer.  In the spirit of Open Source, where you are free to modify the programs to your liking, NetSuite is a platform that itself is meant to be modified.  This ability to modify the system mimics Open Source in that anyone can be a software developer on the NetSuite developer platform. NetSuite gives the tools and software free for people to learn, use and make useful enhancements; but the NetSuite core system is not freely modifiable.  This makes sense, because the software is run in a data center and delivered across multiple channels – and ultimately, NetSuite is accountable for maintaining the smooth operation of the software as a complete service.

If you are looking to develop on NetSuite, you can go to their SuiteFlex developer community.  Related to this program, is an application community called SuiteApp.  You can join the NetSuite program, create a developer account, and begin developing on their JavaScript environment. There are code examples, good documentation and plenty of  capacity to develop against their platform.  And it is all free.

NetSuite’s model isn’t the traditional Open Source model, but it fits with the structure of the business world today.  As Cloud becomes more meaningful, we move away from Open Source and toward a model that allows for businesses to build computing capacities in a competitive fashion.

Copyright © Marty Zigman 2011

Marty Zigman

Holding all three official certifications, Marty is regarded as the top NetSuite expert and leads a team of senior professionals at Prolecto Resources, Inc. He is a former Deloitte & Touche CPA and has held CTO roles. For over 30 years, Marty has produced leadership in ERP, CRM and eCommerce business systems. Contact Marty to set up a conversation.

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