Market Trends

Open Source Continues to Change the Business World

Brighton (UK), July 2009 - Is the business model of the future one where the customer no longer pays? Kineo explores the ideas of author Chris Anderson's book "Free: The Future of a Radical Price" and its implications for eLearning. Anderson argues that people are generally suspicious of 'free' and that, generally, they have been right to think this way. Most existing business models have tended to demand that somewhere along the line, somebody has to pay. But this, he says, is set to change. Andersen argues that in the digital world, everybody else can be subsidized by only a very few paying customers.



For example, open source computer software is free to users, who can then alter and build upon the system, as long as they make it freely available to everyone else. One of the best known examples of this is the Linux operating system. Hobbyists and amateurs developed open source software initially, but now companies such as IBM actually pay engineers to create free applications. "What they are creating is a platform around which you can add value, you can create services, you can create other software, and you can perhaps sell hardware", Anderson argues.

What are the implications for eLearning?

MIT and Open Learn already provide free structured content, and you have all the content that is freely available on Google, YouTube, and Wikipedia. Will there be free eLearning modules? One can are already see people sharing content in the public sector, but it will be interesting to see if anyone decides to start giving away generic content. Kineo argues that it is probably just a matter of time. There is probably also scope to make it open source so that people can add to the content with a tool.

There are also already a number of free tools such as Audacity, GIMP, and others to help users create audio and image assets for eLearning. There are some full authoring tools that are free or nearly free, such as eXe and Udutu, and it will be interesting to see if others emerge in the next few years or if companies that own an authoring tool create an open source version and only charge for premium services.

Furthermore, there is a great choice of open source Learning Management Systems (LMS) available, the most popular being Moodle, which is now used by over eighteen percent of all corporations in the US. Kineo even argues that people will start getting into trouble for not considering an open source LMS. Open source doesn't mean zero cost, though, as users still have to install, host, and support their LMS. It does, however, mean substantially lower costs and no license fees.

And last but not least, there are a number of free virtual classrooms on the market, including DimDim. It does everything the others do, except that one can download it at no cost and run it on one's own servers. There is a cost to host classroom sessions, but this is significantly lower than the costs of running a proprietary system. Alternatively, users can share their screen using the latest version of Skype (4.1), and use the Skype teleconferencing and chat room for free.

So in the future, maybe not everything will be free, but one can expect to see some significant changes in business models and an increased move to free stuff. That's good news for your budget any day - and great news during challenging times like these.