quality

Integral Innovation

In his keynote speech at the Red Hat Summit in Boston, Red Hat CEO Jim Whitehurst made the case that of the $1.3 trillion USD spent in 2009 on Enterprise IT globally, $500 billion was essentially wasted (due to new project mortality and Version 2.0-itis). Moreover, because the purpose of IT spending is to create value (typically $6-$8 for each $1 of IT spend), the $500 billion waste in enterprise IT spending translates to $3.5 trillion of lost economic value. He goes on to explain that with the right innovations—in software business models, software architectures, software technologies, and applications—we can get full value from the money that's being wasted today, reinforcing the thesis that innovation trumps cost savings.

But then along comes Accenture's Chief Technology Architect Paul Daugherty, and in his keynote he presents a list of the top five reasons that customers choose open source software (which is now up to 78% among their customers):

#1 (76%): better quality than proprietary software.

#5 (54%): lower total cost of ownership.

So which is it? Does innovation trump cost savings? Or does quality trump cost savings?

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