Why 80 per cent of your software should be open source

In most organisations 80 per cent of software functionality is totally non-competitive; it's time to switch this ratio around

Some large businesses are slipping into inertia because they are so dependent on outdated processes and legacy technologies that they fail to properly invest in. They risk grinding to halt letting other, more agile, businesses overtake them. The bigger the enterprise the more prone it is to inertia, drifting slowly into oblivion.

Businesses of this scale tend to suffer from diminishing returns due to an imbalance of input versus output. A phenomenon characterised by the Pareto Principle, or the 80/20 rule, which observes 80 per cent of the work in an organisation is done by 20 per cent of the staff, or 20 per cent of the customers generate 80 per cent of revenues and so on.

This phenomenon has also crept into the digital strategy, affecting the IT stack of almost every large enterprise. Businesses are stuck in a cycle where 20 per cent of code functionality makes a company unique. This code delivers margin and a competitive edge, but it leaves the remaining 80 per cent of functionality totally non-competitive. All the effort is concentrated on 20 per cent of IT and digital resources, while the other 80 per cent is neglected, treated as a utility. The 80 per cent refers to legacy software and equipment that's expected to ‘keep the lights on'. That refers to an abundance of essential technology. Everything from operating systems to container solutions, libraries, storage and network code. The 80 per cent is subject to repairs and maintenance, but rarely benefits from the ‘agile' computing strategies, investments and next generation upgrades lavished on the exclusive 20 per cent.

The non-competitive factor

Businesses continue to keep the 80 per cent under wraps for fear of giving up trade secrets. Which is pointless, especially once they realise it's non-competitive. The closer businesses meet on a competitive level, the higher the probability they're using the same, or similar, solutions in that 80 per cent (e.g. ERP, CRM or BPM).

The whole idea of "owning" the entire stack is outdated and creates a huge imbalance. The term ownership is applied loosely here, considering the 80 per cent is largely made up of third party and proprietary software anyway.

If businesses persist with this model, then it's back to diminishing returns. But, break the cycle altogether - by adopting a culture of openness and inclusivity - and input versus output begins to stabilise. Plus, by opening up 80 per cent of the IT stack businesses are able to standardise and optimise essential technologies.

Restricting high-profile transformation initiatives to the 20 per cent is also futile. Far better to have an all-encompassing IT strategy. That's when real changes will occur. The reality is, you can standardise and share more of your non-competitive IT stack with your direct competitors without any consequences. That means you can spend less time and resources on ‘keeping the lights on' and can give more time to focus on the IT initiatives that bring a competitive advantage. This is the true value of open source.

The human touch

The path to innovation begins with a thorough inventory of digital assets. An opportunity to sift through legacy software and applications to reassess capabilities and create a new template. Businesses can start rebuilding standard systems and processes from the ground up, based on contributions from inside and outside the organisation. Transforming the 80 per cent into a collective IP, one that businesses can use to share ideas and best practice, adding a new dimension to keeping the lights on. Internally it will become a major resource, constantly being improved to suit the needs of the business, thanks to the participation of digital communities, in-house developers and even employees.

The human aspect is quite often overlooked in large organisations. People are the lifeblood of any company, it's their energy and ideas that propel the business forward. Much like the 80 per cent, the workforce is also a source of untapped potential. The two are inextricably linked, and they can't really function successfully without the other.

Building from the bottom up

In most organisations today, it's likely that teams and individuals frustrated by the lack of innovation in their department, or across the business, will have already tabled possible solutions. Unfortunately, with so much emphasis placed on the cutting edge, senior and middle management tends to pay less attention to what's happening on the ground. Subsequently, important advice and feedback is ignored.

This can be resolved almost immediately by adopting the 80/20 rule and begin actively inviting non-technical staff to participate in technical discussions that concern them and the wider business. Their contribution is invaluable. They can help developers and IT engineers to find a technical solution to suit a specific business requirement. The culture of openness and collaboration that open source is built on extends all the way through the organisation. Invariably, whenever non-technical staff are given a say in the development process, they become firm advocates of the end product. Imbued with a sense of ownership they're prepared to endorse new ideas and share them with their colleagues.

The commercial advantages of the 80/20 model include significant cost savings and a reduction in the dependence on proprietary software and vendor solutions. However, the cultural advantages are more far-reaching. The new feeling of forward momentum and optimism it creates helps businesses to retain its brightest people and attract new talent. By nurturing talent and developing in-house solutions businesses can reverse the Pareto Principle and achieve equilibrium.

Playing the percentages

Finally, the 20 per cent should not be excluded from this process. Businesses will always need to protect top-secret projects and sensitive company data, but the sharp end of R&D will benefit enormously from having a more open and collaborative culture. Why? Because, it leads to a constant stream of observations and ideas that are fed into software development from every level of the organisation. Rather than leave decision-making to a small clique of developers and engineers, there will be real consensus about what systems and applications the business needs.

Consensus that can be used to decide if a non-competitive application is needed for a specific use case, placing it into the 80 per cent category. Or if something new and innovative is needed to give the business a competitive edge, placing it into the 20 per cent category. Either way, businesses no longer need to stick to hard and fast rules that dictate how they should balance legacy and innovation. Instead, they can focus on innovation at all levels of the organisation. The 80/20 rule can shift to meet changing requirements. Ensuring a more balanced and finely tuned digital infrastructure.

Jan Wildeboer is EMEA open source evangelist at Red Hat