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Red Herring Software Report


Vendors Band Together Against Microsoft

When Microsoft partnered up with Novell last fall, the Linux community was wary. Now it has responded to the alliance with a new one of its own. At the LinuxWorld OpenSolutions Summit in New Yorkthis month, a group of vendors announced the Open Solutions Alliance, the first to unite a spectrum of vendors around integrating open source applications.

The group aims to drive adoption of open source business systems and make Linux and other open source systems from multiple vendors work better together. The alliance will target not only software vendors but also hardware makers like Unisys and corporate customers so they can ensure their systems can cooperate. It will also conduct joint marketing campaigns. Initial members include Adaptive Planning, Centric CRM, CollabNet, EnterpriseDB, Hyperic, JasperSoft, Openbravo, SourceForge.net, SpikeSource, and Talend.

Meanwhile, Microsoft’s Open Source Software Lab extended the olive branch to the Linux faithful by sponsoring a low-key party with a penthouse view. But open source leaders are still wary of the Redmond giant. “Their response will be fear, uncertainty, and doubt. They’re still hoping it’s a fad,” says Brian Behlendorf, chief technology officer at CollabNet.

In competing against the giants of the software industry, the open source vendors need to be able to match them by offering a complete package of applications, not just a single business program. “Now they’re up against the SAPs and Oracles of the world that sell suites that are highly integrated and highly customizable,” says Steve Garone, director of software research at Harvard Research Group.

The new alliance gives them a better chance at competing in the corporate market. “Open source software is highly modularized and requires assembling components from different sources that aren’t necessarily designed to work with each other,” says Michael Goulde, a senior analyst at Forrester Research. “The OSA is setting a goal to come up with a framework and a process for making sure the various components can be integrated.” But he adds that the group has “a long road ahead of them” and needs to attract a larger audience of vendors and customers.

While this alliance is not the first time open source companies have banded together, it’s the first one that is not focused on standards. Could it be that the Linux community finally has a giant killer?

-—Michael Cohn

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The Switzerland of DRM?

The debate over copy protection software is so heated, all parties are pointing fingers. Content owners such as record labels accuse companies like Apple and Microsoft of using proprietary anti-piracy software to gain too much control in the market. In turn, Apple CEO Steve Jobs said label greed gave Apple no choice but to use its proprietary software to keep music fans from illegally copying music. Into the fray steps startup Widevine, which says its content protection software is platform-agnostic.

In other words, Seattle, Washington-based Widevine may end the debate over who unfairly controls digital distribution of music and movies. A private company funded by Cisco, Widevine will license its technology to anyone. Its digital rights management (DRM) software is compatible with any device—be it PC or Mac, iPod, or Zune.

Currently, Apple and Microsoft both have closed systems—meaning that, for example, the only portable music player that can play songs sold by Apple is the iPod. Widevine sidesteps the issue entirely. “We’re very unique in the market in that we don’t have a vested interest in a device, or a vested interest in an operating system, or a vested interest in a format,” says CEO Brian Baker.

Analysts say being device-agnostic could make Widevine likeable even among consumers who detest DRM, since it won’t force users to worry if their device will play all their content. “What’ll also be unique is if they can let consumers [play content] on different devices without getting hung up on if it has, for example, Plays For Sure,” says ABI Research analyst Mike Wolf, referring to Microsoft’s DRM software, which is also used in several other digital music players.

Mr. Baker said Widevine has already signed up “three of five major TV networks” in the United States but wouldn’t give specifics. And its technology has long been used in cable and satellite on-demand networks.

Widevine’s greatest rival may be not other software makers, but growing consumer dissatisfaction with any kind of DRM. “I believe the market trend is moving away from DRM-protected content, period,” says Yankee Group analyst Mike Goodman.

In fact, DRM-free content has already proved commercially viable. eMusic and EZTakes sell independent DRM-free music and films, respectively, and are doing well, says Mr. Goodman. Eventually, major music labels, Hollywood studios, and TV networks could join in. Of course, that could be a long time coming.

-—Eydie Cubarrubia