Written in the form of an organizational briefing, this paper looks at the benefits and drawbacks of open-source software and its effects on Sigma Corporation.
This briefing evaluates the pros and cons of open-source software and provides a recommendation to management at the Sigma Corporation regarding open-source strategies. While Sigma has developed a sound information technology (IT) infrastructure and employs a highly skilled IT staff, increasing IT costs have caused the company to examine ways to reduce IT expenses without affecting the effectiveness of the IT program. It defines open-source whereby the product is distributed with the source code. There are risks associated with open-source. The process is not quite mature, so users assume some risk in using these products. Open-source comes with no warranties and no maintenance agreements. A more detailed summary of the pros and cons of open-source is found in this briefing. The paper concludes that open-source is a viable and wise option for Sigma and outlines a strategy for moving the company in that direction.
“The Sigma Corporation has been in the office supply business for over fifty years and has built a reputation of prompt service with low prices. The reputation for prompt service has been attributed to the company’s computerized inventory system that automatically orders new materials from the manufacturer at specified intervals. The low prices are maintained by keeping company costs to a minimum while getting the job done. The CEO of Sigma, Sigmund Saveabuck, is always looking for ways to save costs in order to maintain a competitive advantage.”