Q. What is your attitude towards open source?
A. ESRI is philosophically very supportive of the open source movement and we have engineered our tools so they live inside an open source sandwich. They run on Linux and other open source systems. We have some significant components of our tools that are open source such as Spatial Statistics, which we purposefully kept in Python open source environments.

"Mmmmmm, open source..."
The subtext is that ESRI is not so interested in controlling the whole stack, soup-to-nuts, anymore, which of course is not all true. ArcMap still really requires ArcServer (née ArcSDE) for direct database editing – even if you "direct connect" to your Oracle Spatial or PostGIS you need the ArcServer license. For many ArcMap customers, "what works with ArcMap" is still the first and only question driving purchasing decisions, and the answer to the question remains "another product from ESRI". However, in places where they don't have their customers' balls in a vice (server-side, web services), ESRI is being forced to integrate better with third party software. Thank you, market discipline.
Q. Do you face much competition from open source?Shades of Microsoft, an enjoyable icing of FUD, and a roadmap for open source competitors, should they be willing to follow it.
A. I don’t think we do. It’s a political movement as well as a technical effort. People who buy our products don’t typically want to buy open source because they want to acquire total integrated support for their mission critical applications. Do we want ambulance dispatch running on a system that’s not as well supported? Arguably a commercial product can bring about better support these days, maybe that won’t be the case in the future. But at this point our general philosophy is that we like the open source movement, we not challenging it, or challenged by it, and we welcome it into the geospatial community because it’s a hotbed of open research that we benefit from and like to contribute to.

Would you buy software
from this man?
Having intimated that open source is anarchist basement hackers (incidentally, our own tendency to speak about an "open source movement" plays into this harmful connotative framework), Jack moves to the meat of his argument, that ESRI provides "total integrated support" and open source does not. Attempting to rub salt in the wounds, he tosses in an ambulance dispatch example (Jack, I want my ambulance dispatch running on a system that, first and foremost, works).
Of course, to believe that ESRI has an advantage in the realm of "total integrated support", you have to first believe that the support available from ESRI is worth paying money for.
Most important, Jack is ceding arguments about technical superiority here. It's not about software anymore, it's about support. And the gauntlet is thrown down – if your company can create a credible open source whole product you can play with the big boys. Mind you, a good deal of the psychological comfort decision makers draw from things like "support contracts" comes from enterprise size, and there's a serious chicken-and-egg problem to be dealt with there for open source enterprises.

4 comments:
Most of the times I contact ESRI for support it is due to bugs in their software. And more often than not they do not have any solution. The wonderful thing about opensource is that you can easily talk to the developers, and even fix problems yourself.
Regarding the 2nd point - that of support - here's a very relevant 9 minute video of Clay Shirky talking about the topic.
Jack: "We don’t focus on consumer technology."
Consumer technology as in e.g. Google Maps. So can anybody then explain to me why they are writing so many articles about doing mashups with ArcGIS Server?
Which I've wondered about anyway, since why would you buy such an expensive product to do something as "simple" as mashups which can be perfectly done by the open source stack.
I recently put together a demo for the local 911 dispatch centre. It was a custom QGIS application using pgRouting on top of PostGIS. This was an entire open source sandwich. The 911 boys had a little trouble getting their heads around the idea that the software was free, considering that it worked better than any proprietary demo they had seen.
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