[Ilugc] Is the proprietary camp winning ?
- From: ramanraj.k@xxxxxxxxx (Ramanraj K)
- Date: Fri Oct 13 15:11:28 2006
Binand Sethumadhavan wrote:
Well, the fact that a given company is spending money does not
necessarily mean they are earning it in the first place.
Software companies seem to be earning well - in fact they are the ones pushing
and keeping the SENSEX up :)
Business Today, May 21, 2006, carried a very interesting story about the plans
of TCS, Infosys and Wipro to make $10 Billion (~Rs. 45,000 Crores) in annual
revenues by 2010 and the article was mostly an analysis on who would make it
there _first_ Some of the key facts given were:
--------------------------------+----------+----------+----------+
The numbers of the big three: | TCS | Infosys | Wipro |
--------------------------------+----------+----------+----------+
Revenues (Cr) 13,252 9,521 10,625
Net Profit (Cr) 2,966 2,458 2,667
Number of Employees 66,480 52,715 59,965
Number of Employees to be 30,500 25,000 na
hired in 2006-07
Number of customers 929 460 502
Contribution of top 5 customers 17% 18% 15%
Contribution of top 10 -do- 27% 31% 26%
Customers accounting for 9 9 4
revenues $50m or higher
Revenue split (onsite/offshore) 62/38 49/51 54/46
--------------------------------+----------+----------+----------+
There is no much information about the extent to which the top companies use or
support free software. If they do use free software, and some day do give 10%
royalty to free software developers, it could give a big boost to the free
software movement in India. Also, if the companies adopt the GPL or other free
software licenses which may include a royalty clause I have been suggesting
here, they could also earn 10% royalty from other distributors.
It probably least matters for the companies, so far as their revenues are
concerned, whether the software "technology" used by them is free or non-free.
No matter what, it is likely to remain a constant - if they use free software,
they could probably pass on the benefit in cost savings to their customers.
Any cash flow through the hands of free software developers should be welcome.
A license that gives no scope or room for it may not attract the attention of
the big businesses here. I would finish saying, an arrangement for payment of
royalty to free software developers would be in the interest of both small and
big entities, and the best way to encourage authors and their projects.
-Ramanraj K
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