We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
    7 Min Read
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
    chatgpt image jul 13, 2026, 03 59 46 pm
    How Data Analytics Improves Multi-Location Search Strategies
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: It’s Not the Tool, but How it is Used
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Big Data > Data Warehousing > It’s Not the Tool, but How it is Used
Business IntelligenceData Warehousing

It’s Not the Tool, but How it is Used

RickSherman
RickSherman
4 Min Read
It’s Not the Tool, but How it is Used
Illustration generated with Qwen Image.
SHARE

A research note from the 451 Group “Open source is not a business model” discussed that selling open source is a tactic rather than a business model.  They then went on to discuss the various business strategies of 114 open-source vendors.

I’ve got a couple of thoughts on this, but I’d also really like to hear your take on this in your comments.

First, there are other technologies that are also tactics, not business models. These include on-demand or software-as-a-service (SaaS) software and cloud computing. There are many people who hope that all three will change how software is distributed and used in our industry. All claim to have a lower TCO (total cost of ownership), but whether that is true depends on the specific business strategies employed by each vendor.

The advocates of these technologies proclaim that they are the wave of the future.  This may indeed be true, but just as PCs, client server computing and the web took years to become “mainstream,” it may take a while for these technologies too. Keep in mind that the leaders in these technologies, especially if they are small vendors, may not be the leaders (or even exist) by the time these technologies “cross the chasm.”

More Read

Location Intelligence: Top 12 industries
Location Intelligence: Top 12 industries
Embedded BI Tools Bring Huge Benefits to Business Applications
Artificial Intelligence: The New Super-Efficient Crime Busting Tool
10 Ways to Gain Targeted Insights Into User Behavior
Customer Feedback and Data Analysis: The Keys to a Good Customer Retention Rate

Second, and more important, is the underlying fact that it is the business use of these technologies that will drive their adoption and spread not the tool itself. There has to be a business use for the software before it is adopted. If a business does not need the required application then it does not matter whether it is offered on-demand versus on-premise, proprietary versus open source, or just hanging out on a cloud.

We have been experiencing a bear market and a recession lately. In general the stocks in our On-Demand Software and Business Intelligence indexes have fared poorly. When these stocks and companies rebound, besides the usual stock fundamentals, one of the key ingredients to success both in the marketplace and the stock market will be whether the vendors have the business applications that corporations are willing to pay for. Companies that are laying off people and have hiring/expense freezes are probably not going to adopt salary or expense management software regardless of the cost. Software targeted at new automobile or real estate sales will also get a lukewarm reception. Software oriented towards health care, particularly helping health care providers operate more efficiently, are likely to sell well.

Selling is always about meeting someone’s needs. Technologists too often think it is about the tools. Early adopters, often other technologists or companies with deep pockets, reinforce the Technology is King mindset. Sometimes it takes a bear market and a recession to highlight that it is not about the tool, it’s about how it’s used.

Link to original post

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Flat editorial illustration: The article connects fragmented social-service records through shared pathways and selective informa
Turning Disconnected Information Data Into Better Social Service Outcomes
Big Data
Flat editorial illustration: The article explains how one KYC upload becomes separate records held by a verification vendor and a
What Happens to My KYC Data Behind the Approval Screen?
Big Data Exclusive
Flat editorial illustration: The article connects AI-generated avatar variants with disciplined, measurable video experiments. A
How to Use an AI Avatar Generator to Run Measurable Video Experiments
Artificial Intelligence Exclusive
Flat editorial illustration: The article’s core relationship is between growing compute density and adaptable rack hardware that
6 Details That Make a Data Centre’s Server Room Easier to Scale
Best Practices Data Management Exclusive IT

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Data Accumulation
Big DataData ManagementDecision Management

Performance Lag between Data Accumulation and Utilization

6 Min Read
Top 10 analytic mistakes
Business IntelligenceCRMData MiningData VisualizationInside CompaniesMarketing

Top 10 analytic mistakes

7 Min Read
Engines of Complexity
Business Intelligence

Engines of Complexity

9 Min Read
Why Oh Why Is It So Difficult? Implementing Sales and Operations Planning
AnalyticsBusiness IntelligenceData QualityDecision Management

Why Oh Why Is It So Difficult? Implementing Sales and Operations Planning

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

5 Great Tips for Using Data Analytics for Website UX
5 Great Tips for Using Data Analytics for Website UX
Big Data
How To Get An Award Winning Giveaway Bot
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?