The Nugget
- The working paper "The Value of Open Source Software" suggests that if OSS didn't exist, companies would spend 3.5 times more on software, but the methodology used may not be entirely accurate.
Key insights
Evaluation of working paper's headline results
- Companies would spend 3.5 times more on software if OSS didn't exist.
- The cost to rebuild all OSS was estimated at $4.15 billion.
- It would cost companies $8.8 trillion to rebuild all the OSS they use.
Flaw in the methodology
- The labor market valuation approach used may not be accurate.
- The goods market valuation approach, a potential alternative methodology, suggests a significantly lower cost if OSS didn't exist.
Inclusion of Go in the analysis
- The decision to include Go as one of the top languages in OSS analysis raises questions.
- Including Go could have impacted the demand-side analysis significantly.
Key quotes
- "The working paper estimates that actual software spending was $3.4 trillion in 2020."
- "Based on my reading, companies would spend almost nothing more if OSS didn't exist."
Make it stick
- 💡 The methodology used in the working paper may not accurately reflect the actual cost impact of OSS.
- 🤔 Consider alternative approaches, like the goods market valuation, to assess the value of OSS.
- 💻 Question the inclusion of certain programming languages, like Go, in OSS analysis.
- 📊 Understanding the true value of Open Source Software is crucial for addressing sustainability challenges.
This summary contains AI-generated information and may be misleading or incorrect.