I'm reading through an excellent JMP Securities research note called "Turning the Software Model Upside Down: The Proliferation of Open Source." [Subscription required.] It's a good overview of the open source business phenomenon - the how's and why's open source is increasingly dominating software - but I particularly like its analysis of proprietary vendor's likely responses to open source:
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Proliferation of enterprise license agreements ("ELAs"?). Large enterprise software vendors such as Oracle Corporation, Microsoft and IBM may aggressively pursue ELAs with customers. Our due diligence suggests Oracle has employed this practice over the past few years. ELAs reduce the cost advantages of open source software since they are often structured as "?all you can eat" type of deal. Effectively the …