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Sourc
ing O
ptions
Ove
rvie
w
"Pure
Mak
e" (
100%
in-h
ouse
)
"Mak
e" w
ith e
xter
nal
consu
ltan
ts
"Mak
e" w
ith s
ubco
ntr
acte
dfu
nct
ions
"Mak
e",
follo
wed
by
spin
-off
"Buy"
fro
m p
rovi
der
and c
ust
om
ize
in-h
ouse
"Buy"
fro
m p
rovi
der
, w
ith fin
anci
al inve
stm
ent
in
the
pro
vider
"Buy"
fro
m p
rovi
der
, but
"nurt
ure
" pro
vider
with
par
tner
ship
and long-t
erm
contr
act
"Pure
Buy"
(100%
ext
ernal
)
...
"Pu
re M
ake"
"Pu
re B
uy"
Sourc
e: ]
pro
ject
-open
[, o
wn e
labora
tion,
htt
p:/
/ww
w.p
roje
ct-o
pen
.com
/whitep
aper
s/
Co
vere
db
yO
SS
Typ
ical
ERP
Life
cycl
e Ph
ases
Dec
linin
gP
hase
Eva
l.Ex
tend
ing
Valu
eIm
plem
ent
Pha
se II
Mai
ntai
ning
Valu
eIm
plem
ent
Pha
se I
Cust
om
iza
tion
Evaluation
Pro
duct
Lice
nse
&M
aint
Chan
ge
Mgm
t.
Pro
ject
Man
agem
ent
Tra
inin
g
Cust
om
iza
tion
Tra
inin
g
Cust
om
izat
ion
Tra
inin
g
Lice
nse
&M
ainte
nan
ce
Lice
nse
& M
aint Pro
ject
Man
agem
ent
Sourc
e: O
wn e
labora
tion b
ased
on “
ERP L
ife
Cyc
le:
From
Birth
to D
eath
and B
irth
Agai
n“
by
Andy
Kle
e, S
epte
mber
10,
2005 in T
echnolo
gye
valu
atio
n.c
om
OS
S-
Co
nsu
lt.
or
DIY
No
ven
do
r lo
ck-i
n.
Bu
y c
on
sult
ing
or
DIY
OSS B
usi
nes
s M
odel
Litt
le S
ales
, ju
st
mar
keting &
PR
Reu
se o
f Soft
war
efr
om
oth
er O
SS-
Pro
ject
s
Sal
es is
usu
ally
50%
of IT
co
mpan
y co
sts.
..
Sav
es 5
0%
-80%
of
dev
elopm
ent
cost
s
4x
-10x
bet
ter
valu
e fo
r Cust
om
ers
50%
(fr
ee s
oft
war
e)Still
2x
-5x
valu
e to
be
dis
trib
ute
d
Open
-Sourc
e "D
isso
nan
ce"
Com
pan
y Siz
e:U
sual
ly s
mal
ler
then
clo
sed-s
ourc
e
No "
push
y" S
ales
Org
aniz
atio
nN
ew p
oss
ibili
tis
for
cust
om
er:
May
cau
se fea
r
Open
-Sourc
e FU
D:
Inco
mpre
hen
sion o
f Biz
model
, pat
ents
, ..
.
Pro
file
of
the
peo
ple
in t
he
OSS-C
om
pan
ies:
Dom
inat
ed b
y Tec
hie
s
Pro
ject
Sel
f D
iagnosi
s
DIY
No h
elp
nee
ded
.
Tra
in t
he
Tra
iner
Hire
Sys
Adm
in
DIY
, in
-house
dev
elopm
ent
Tra
in t
he
Tra
iner
Inte
nsi
ve
Consu
ltin
g
Par
tner
ship
&
in-h
ouse
dev
elopm
ent
Tra
in t
he
Tra
iner
Inte
nsi
ve
Consu
ltin
g
1-5
em
plo
yees
5-5
0
emplo
yees
>50
emplo
yees
Busi
nes
sfo
cus
Som
ete
chnolo
gy
Str
ong
tech
nolo
gy
Tec
hnolo
gy
Sophis
tica
tion
Size
Pro
ject
Sel
f D
iagnosi
s
DIY
No h
elp
nee
ded
.
Tra
in t
he
Tra
iner
Hire
Sys
Adm
in
DIY
, in
-house
dev
elopm
ent
Tra
in t
he
Tra
iner
Inte
nsi
ve
Consu
ltin
g
Par
tner
ship
&
in-h
ouse
dev
elopm
ent
Tra
in t
he
Tra
iner
Inte
nsi
ve
Consu
ltin
g
1-5
em
plo
yees
5-5
0
emplo
yees
>50
emplo
yees
Busi
nes
sfo
cus
Som
ete
chnolo
gy
Str
ong
tech
nolo
gy
Tec
hnolo
gy
Sophis
tica
tion
Size
Bu
yM
ake
or
Ad
ap
t
Pro
ject
Sel
f D
iagnosi
s
DIY
No h
elp
nee
ded
.
Tra
in t
he
Tra
iner
Hire
Sys
Adm
in
DIY
, in
-house
dev
elopm
ent
Tra
in t
he
Tra
iner
Inte
nsi
ve
Consu
ltin
g
Par
tner
ship
&
in-h
ouse
dev
elopm
ent
Tra
in t
he
Tra
iner
Inte
nsi
ve
Consu
ltin
g
1-5
em
plo
yees
5-5
0
emplo
yees
>50
emplo
yees
Busi
nes
sfo
cus
Som
ete
chnolo
gy
Str
ong
tech
nolo
gy
Tec
hnolo
gy
Sophis
tica
tion
Size
OS
S +
C
on
sult
ing
OS
SD
IY
OS
S +
P
art
ners
OSS is
Mar
ket
Lead
er .
..
Mark
et
Lead
ers
Web
Bro
wse
rs (
Apac
he)
Conte
nt
Man
agem
ent
(Typ
o3)
Dat
abas
es (
MyS
QL)
Inst
ant
Mes
sagin
g (
Jabber
)Ja
va A
pplic
atio
n S
erve
rs (
Apac
he/
JBoss
)All
Inte
rnet
Tec
hnolo
gy
(Bin
d,
Post
fix,
...
)2
nd
:Ser
ver
Oper
atin
g S
yste
ms
(Lin
ux)
No
w c
om
ing
:Sugar
CRM
...
(# I
nst
alle
d S
yste
ms)
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