Stuart Cohen is a man with a vision for the future of software. One that seeks to minimize the dependence companies have on commercial IT software vendors. His idea is that companies in a similar industry should band together and mutually collaborate to create Open Source software that is custom made for their domain space.
Cohen thinks that similar companies working together can cut the cost of software ownership in half and create more relevant, closely tailored solutions for their space. Cohen is the former CEO of the Open Source Development Labs and now founder of the for-profit Collaborative Software Initiative.
The Financial industry led by companies like Merrill Lynch, Morgan Stanley, and the Bank of New York has told Cohen that such a collaborative Open Source model is attractive to them. Direct collaboration of these companies could result in what some might see as anti-competitive practices, and Cohen’s company helps them get around that. Cohen’s new company will be funded by sponsors to develop niche Open Source, but software that will be developed using the open source process and available for all to use.
The Collaborative Software Initiative signed up Even Bauer, former CTO of Credit Suisse, as their new CTO. They’ve also received startup funding from OVP Venture Partners.
CSI is targeting the development of software believed to be essential to companies in a particular industry, but not software that is not ‘core’ to their business.
It’s an interesting idea, one that software vendors won’t warmly embrace, and one that most likely would be most beneficial to consumers of products from these industries. While collaborative Open Source has the potential to reduce the total costs of doing business, top-tier companies could lose some of the competitive advantage that they’ve acquired in the industry. The cost of entry would be lowered, leading to increased competition and the reduction of prices.
Advances in IT are leveling the playing field and creating intense rivalries in all industries. As barriers to starting and maintaining businesses shrink, the dynamics of existing markets are likely to be volatile. New businesses will be able to startup quickly and existing businesses will need to be ever more agile to remain one step ahead of their competition.
