Open source's future: More Microsoft, bigger talent shortages
The interest by Microsoft and other big companies in open source should fuel more M&A activity in 2008, Zachary said. He said there were 16 deals in 2006 and have been 25 to date in 2007, while funding for new open source companies has plunged ($513 million for 53 companies in 2006 vs. $270 million for 39 companies so far this year).
But not all the news for 2008 will be good if the market watcher is correct.
The current shortage of open source talent will only worsen as demand skyrockets for internal open source support and developers, Zachary said. One example of such a shortage will be people with expertise in the open source Java servlet middleware called Tomcat that comes from the Apache Foundation. “There are 25 or so core contributors to that project,” Zachary said. “Over the past four or five years that number has stayed virtually identical…but the growth of Tomcat has been astronomical.”
Zachary said companies increasingly have been hiring Linux know-it-alls, but he advised them also to focus on identifying which open source projects have big potential and hiring talent early on before the going price gets too high.
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