Pivotal and the threat of open source CRM: A strategic ...

[Pages:91]PIVOTAL AND THE THREAT OF OPEN SOURCE CRM: A STRATEGIC ASSESSMENT

Matthew Brownstein Diego Lin

PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

In the Faculty

of Business Administration Management of Technology MBA

O Matthew Brownstein, Diego Lin 2005

I

SIMON FRASER UNIVERSITY

Fall 2005

All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the authors.

APPROVAL

Name: Degree: Title of Project:

Matthew Brownstein Diego Lin

Master of Business Administration

PIVOTAL AND THE THREAT FROM OPEN SOURCE: A STRATEGIC ASSESSMENT

Supervisory Committee:

Dr. Aidan Vining Senior Supervisor Professor, Faculty of Business Administration

Date Approved:

Dr. Michael Brydon Second Reader Assistant Professor, Faculty of Business of Administration

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ABSTRACT

The open source idea is gaining currency. In areas such as scripting languages, web server platforms, and database servers, open source software has managed to compete with and surpass commercial incumbents. Could the CRM industry be next? To answer this question, we introduce four open source case studies: Linux, Apache, MySQL, and PHP. Identifying commonalities between them, we suggest a framework for explaining the success of open source projects. Based on this framework, we evaluate the likelihood of open source CRM succeeding and pinpoint future developments that would trigger its widespread adoption. We conclude that open source CRM is likely to succeed and that its success will negatively impact commercial CRM vendors. In light of these conclusions, we propose recommendations that Pivotal Corporation - a commercial CRM incumbent - can pursue in order to better position itself in the industry's evolving competitive landscape.

Kejywords: Open Source Software; Customer Relationship Management; CRM Industry; Disruptive Technology; Pivotal Corporation; SugarCRM; Provision of Public Goods

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