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Red Hat CEO Says Software Vendor Model Is Broken

October 20th, 2010 10:43 admin Leave a comment Go to comments

alphadogg writes The current model of selling commercial enterprise software is broken, charged the CEO for Red Hat. It is too expensive, doesn’t address user needs and, worst of all, it leaves chief information officers holding all the risk of implementing new systems. ‘The business models between customer and vendors are fundamentally broken,’ said Jim Whitehurst, speaking Wednesday at the Interop conference in New York. ‘Vendors have to guess at what [customers] want, and there is a mismatch of what customers want and what they get. Creating feature wars is not what the customer is looking for.’ Whitehurst estimated that the total global IT market, not including telecommunications, is about $1.4 trillion a year. Factor in the rough estimates that half of all IT projects fail or are significantly downgraded, and that only half of all features in software packages are actually used, then it would follow that ‘easily $500 billion of that $1.4 trillion is fundamentally wasted every year,’ he said.”

Source: Red Hat CEO Says Software Vendor Model Is Broken

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