Queensland University of
Technology

The Adoption of Open
Source Software by
Singaporean Companies

A dissertation submitted by
Edmund Koh Ker Yuan,
Bachelor of Information Technology
For the award of Masters of Information Technology

Jan 2009


Queensland University of Technology

Edmund Koh

Abstract
Based on collaboration rather than competition, Open Source Software provides a
new dynamic in the development and use of software systems. As such it has the
potential to make a significant legal, social and economic impact on the industry.
While its origins trace back to the start of the software industry, the recent success of
the Linux operation system, Apache web server or the Mozilla Firefox Internet
Browser provide impetus to the growth of interest in this movement. However, while
a number of studies have been conducted on its development, few have provided
empirical evidence of its adoption within the South East Asian context. This study
aims to investigate factors leading to the adoption of Open Source Software in
Singaporean Organisations.

The research has found that the adoption of Open Source Software is driven by the
perception of a cost advantage. The organisations interviewed have acknowledged
cost as being one of their biggest concerns and top priorities. While costs were stated
to be of major concern to the organisations, objective measures of cost such as Total
Cost of Ownership (TCO) and Return on Investment (ROI) were rarely used by the
organisations studied. This perception of cost saving is found to be led by industry
sources such as publications, conferences and websites.

The next significant finding is the need for increased open source software skills in
the industry. One of the major drivers of Open Source Software Adoption in the
organisations is that they posses pre-existing skills in Open Source Software use.
This enables them to better mitigate risk and to lower their training costs.

The final principal finding is that Open Source Software appears to be used mainly in
systems infrastructure applications. Organisations reported a large degree of
satisfaction including increased stability, scalability and cost effectiveness. Issues
remain with Open Source Software’s manageability, its quality of support and ease
of use.

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Edmund Koh

Certification of Dissertation
I Edmund Koh Ker Yuan hereby certify that ideas, experimental work, results,
analyses, software and conclusions reported in this dissertation are entirely my own
effort, except where otherwise acknowledged. I also certify that work is original, and

has not been previously submitted for any other award, except where otherwise
acknowledged.

___________________________

16/01/2009______________

Signature of Candidate

Date

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Edmund Koh

Acknowledgements
I would like to take this opportunity to thank everyone who has provided me with
assistance and support for the duration of this study. In particular, I would like to
thank the following people who have helped make this thesis a reality.

I would like to thank my supervisors, Dr Dietrich Splettstoesser from the University
of Southern Queensland for the beginning stages my research, Dr Greg Timbrell and
Professor Alan Underwood from the Queensland University of Technology who
have help me focus on the task at hand. I would also like to thank Ed Fitzgerald, Guy
Gable and Chan Taizan for their academic assistance. I would also like to thank
Steve McWhirter and Zon Lim from Red Hat Asia Pacific for providing me with
access to their customers and insight into the operations of their organisation.


Finally I would like to thank my family whose support and patience made this
research possible.

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Edmund Koh

Table of Contents
Abstract ......................................................................................................................... i
Certification of Dissertation......................................................................................... ii
Acknowledgements .....................................................................................................iii
List of Figures ............................................................................................................. ix
List of Tables ............................................................................................................... x
1.

2

Introduction .......................................................................................................... 1
1.1

Background to the Research ........................................................................ 1

1.2

Justification for the Study ............................................................................ 3


1.2.1

Size of the Industry .............................................................................. 4

1.2.2

Literature Review................................................................................. 5

1.2.3

Benefits to Practitioners ....................................................................... 6

1.3

Research Problem ........................................................................................ 6

1.4

Methodology ................................................................................................ 7

1.5

Principal Findings ........................................................................................ 8

1.6

Contribution ................................................................................................. 9

1.7


Outline of the report ..................................................................................... 9

Background ........................................................................................................ 12
2.1

History of Propriety Software Development.............................................. 12

2.1.1

The Birth of the software Industry ..................................................... 13

2.1.2

Bundled Software............................................................................... 15

2.1.4

Software Crisis ................................................................................... 19

2.1.5

Standards and the need for interoperability ....................................... 20

2.2

Emergence of Open Source Software ........................................................ 21

2.2.1

History of Open Source Software ...................................................... 22


2.2.2 Linux ......................................................................................................... 27
2.2.3

Apache ............................................................................................... 29

2.2.4

Sendmail............................................................................................. 30

2.2.5

Mozilla ............................................................................................... 31

2.3
3.

Summary .................................................................................................... 31

Literature Review............................................................................................... 34
3.1

Unbundled Proprietary Software and Property Rights .............................. 34
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3.1.1

Patents ................................................................................................ 35

3.1.2

Copyright ........................................................................................... 36

3.1.3

Trade Secrets...................................................................................... 37

3.1.4

Trademarks......................................................................................... 38

3.2

Definition of Open Source ......................................................................... 39

3.2.1

Berkeley Style Licenses (BSD-style) {Appendix A} ........................ 43

3.2.2

GNU General Public License (GPL) {Appendix B} ......................... 43

3.2.3


GNU Library General Public License (LGPL) {Appendix C}.......... 44

3.2.4

Mozilla Public License (MozPL or MPL) {Appendix D}................. 45

3.3

Open Source Development Characteristics................................................ 45

3.3.1

Developers are users .......................................................................... 46

3.3.2

Community......................................................................................... 46

3.3.2.1

Balance of centralization and decentralization .............................. 46

3.3.2.2

Meritocratic culture........................................................................ 47

3.3.3
3.4

Motivation .......................................................................................... 47


Advantages................................................................................................. 48

3.4.1

Costs................................................................................................... 48

3.4.2

Customisation......................................................................................... 50

3.4.3

Quality................................................................................................ 51

3.4.4

Transparency ...................................................................................... 52

3.4.5

Reduced Vendor Control ................................................................... 53

3.5

Limitations ................................................................................................. 53

3.5.1

Development Guarantee..................................................................... 54


3.5.2

Publicity ............................................................................................. 54

3.5.3

Liability .............................................................................................. 55

3.6

Open Source Software Successes .............................................................. 56

3.7

Research on Open Source Software........................................................... 56

3.7.1

Reasons for Open Source Initiatives by firms ................................... 58

3.7.2 Open Source Software diffusion ............................................................... 59
3.8
3.9

Research Question.................................................................................. 60
Software Adoption ..................................................................................... 61

3.9.1


Technology Adoption Cycles............................................................. 61

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Edmund Koh

3.9.2  Factors in Software adoption ................................................................. 66 
3.9.3  Adoption Frameworks............................................................................ 67 
3.9.3.1 

Technology-push, need-pull........................................................... 68 

3.9.3.2 

Information Systems Strategic Planning ........................................ 70 

3.9.3.3 

Glynn, Fitzgerald and Exton Framework for OSS Adoption......... 74 

3.9.5  Framework of Open Source Software Adoption.................................... 76 
3.10 
4. 

Conclusion ................................................................................................. 81 

Methodology ...................................................................................................... 83 

4.1 

Research Design ......................................................................................... 83 

4.1.1  Research Paradigms ............................................................................... 83 
4.1.2  Qualitative Research .............................................................................. 86 
4.2 

Case Study.................................................................................................. 87 

4.2.1 Validity and reliability ............................................................................. 88 
4.2.1.1 

Construct Validity .......................................................................... 89 

4.2.1.2 

Internal Validity ............................................................................. 89 

4.2.1.3 

External Validity ............................................................................ 89 

4.2.1.4 

Reliability ....................................................................................... 89 

4.2.2  Research design and primary data collection ......................................... 90 
4.2.3 Sampling and case selection..................................................................... 90 
4.2.4 Case and interview protocol ..................................................................... 91 

4.2.5 Data collection and case analysis ............................................................. 93 
4.2.6 Ethical considerations ............................................................................... 95 
4.3 
5. 

Conclusion ................................................................................................. 96 

Results ................................................................................................................ 98 
5.1 

Interview Administration ........................................................................... 98 

5.2 

Framework of Open Source Software Adoption...................................... 100 

5.3 

Pilot Survey .............................................................................................. 102 

5.4 

In - Depth Interviews ............................................................................... 103 

5.4.1  Organisation A ..................................................................................... 103 
5.4.1.1 

Internal Organisational Factors .................................................... 103 

5.4.1.2 


External Organisational Factors ................................................... 104 

5.4.1.3 

Internal Information Technology Factors .................................... 106 

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5.4.1.4

External Information Technology Factors ................................... 107

5.4.1.5

Use of Open Source ..................................................................... 109

5.4.2

Organisation B ................................................................................. 112

5.4.2.1

Internal Organisational Factors .................................................... 113


5.4.2.2

External Organisational Factors................................................... 113

5.4.2.3

Internal Information Technology Factors .................................... 115

5.4.2.4

External Information Technology Factors ................................... 116

5.4.2.5

Use of Open Source ..................................................................... 117

5.4.3

Organisation C ................................................................................. 119

5.4.3.1

Internal Organisational Factors .................................................... 120

5.4.3.2

External Organisational Factors................................................... 120

5.4.3.3


Internal Information Technology Factors .................................... 122

5.4.3.4

External Information Technology Factors ................................... 124

5.4.3.5

Use of Open Source ..................................................................... 125

5.4.4

Organisation D ................................................................................. 127

5.4.4.1

Internal Organisational Factors .................................................... 127

5.4.4.2

External Organisational Factors................................................... 128

5.4.4.3

Internal Information Technology Factors .................................... 129

5.4.4.4

External Information Technology Factors ................................... 131


5.4.4.5

Use of Open Source ..................................................................... 132

5.4.5

Organisation E.................................................................................. 135

5.4.5.1

Internal Organisational Factors .................................................... 135

5.4.5.2

External Organisational Factors................................................... 136

5.4.5.3

Internal Information Technology Factors .................................... 138

5.4.5.4

External Information Technology Factors ................................... 139

5.4.5.5

Use of Open Source ..................................................................... 140

5.4.6


Organisation F.................................................................................. 143

5.4.6.1

Internal Organisational Factors .................................................... 143

5.4.6.2

External Organisational Factors................................................... 144

5.4.6.3

Internal Information Technology Factors .................................... 146

5.4.6.4

External Information Technology Factors ................................... 148

5.4.6.5

Use of Open Source ..................................................................... 149

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5.5
6.


Conclusion ............................................................................................... 152

Data Analysis ................................................................................................... 155
6.1

Results from the Prior Study .................................................................... 156

6.2

Organisational Analysis ........................................................................... 161

6.3

Cross Case Analysis................................................................................. 173

6.3.1

Internal Organisational Factors ........................................................ 173

6.3.3

External Organisational Environment.............................................. 180

6.3.4

External Information Technology .................................................... 183

6.3.5

Conclusion concerning the adoption of Open Source Software ...... 186


6.4
7.

Edmund Koh

Conclusion ............................................................................................... 195

Conclusions ...................................................................................................... 198
7.1

Summary of study .................................................................................... 198

7.1.1

Research Question............................................................................ 198

7.1.2

Research Design And Methodology ................................................ 198

7.1.3

Framework of Open Source Software Adoption.............................. 200

7.2

Results from the Prior Study .................................................................... 202

7.3


Summary of Findings............................................................................... 207

7.4

Contribution of Research to Knowledge and Practice ............................. 209

7.4.1

Contribution to Research.................................................................. 209

7.4.2

Implications for Practitioners........................................................... 210

7.5

Limitations of the Study........................................................................... 211

7.6

Directions for Future Research ................................................................ 211

7.7

Summary .................................................................................................. 213

References ................................................................................................................ 215

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List of Figures
Figure 2.1: Vertically Integrated Mainframe and Minicomputer Industry Structure. 15
Figure 2.2: PC Industry Structure .............................................................................. 20
Figure 3.1: Open Source Framework ......................................................................... 45
Figure 3.2: Overall TCO by Environment ................................................................. 50
Figure 3.3: Rogers Technology Adoption Cycle ....................................................... 62
Figure 3.4: Hype Cycle for Open-Source Software ................................................... 64
Figure 3.5: Technology Push vs Needs Pull .............................................................. 68
Figure 3.6: Ward and Griffiths ISSP Framework ...................................................... 72
Figure 3.7: Glynn, Fitzgerald and Exton Framework ................................................ 75
Figure 3.8: Framework of Open Source Software Adoption ..................................... 79
Figure 4.1: Outline ..................................................................................................... 88
Figure 6.1: Research Model ..................................................................................... 101
Figure 5.1: Revised Framework of Open Source Software Adoption ..................... 158
Figure 7.1: Research Model ..................................................................................... 201
Figure 7.1: Revised Framework of Open Source Software Adoption ..................... 204

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List of Tables
Table 1.1: Interview Cases ........................................................................................... 7 
Table 3.1: Comparison of Software Licences ............................................................ 39 
Table 3.2: Requirements for Open Source Licence ................................................... 42 
Table 3.3: Price comparisons between proprietary and open source operating systems
in US Dollars as at September 2005. ................................................................. 49 
Table 3.4: Existing literature on the research of Open Source Software ................... 57 
Table 3.5: Software/ Technology adoption models ................................................... 66 
Table 4.1: Paradigm comparison................................................................................ 84 
Table 4.2: Advantages and disadvantages of realism and positivism paradigms for
research .............................................................................................................. 85 
Table 4.3: Summary of interview protocol content ................................................... 93 
Table 5.4: Porter’s 5 Forces on Organisation A....................................................... 105 
Table 5.5: Open Source Software Used in Organisation A ..................................... 110 
Table 5.6: Comparison of Open Source and Closed Source Software in Organisation
A ....................................................................................................................... 111 
Table 5.7: Demographics of Organisation B ........................................................... 113 
Table 5.8: Porter’s 5 Forces on Organisation B ....................................................... 114 
Table 5.9: Open Source Software Used in Organisation B...................................... 118 
Table 5.10: Comparison of Open Source and Closes Source Software in Organisation
B ....................................................................................................................... 118 
Table 5.11: Demographic of Organisation C ........................................................... 120 
Table 5.12: Porter’s 5 Forces on Organisation C ..................................................... 121 
Table 5.13: Information Technology Environment on Organisation C ................... 122 
Table 5.14: Open Source Software Used in Organisation C.................................... 125 
Table 5.15: Comparison of Open Source vs Closes Source Software in Organisation
C ....................................................................................................................... 126 
Table 5.16: Porter’s 5 Forces on Organisation D..................................................... 129 
Table 5.17: Open Source Software Used in Organisation D ................................... 133 
Table 5.18: Comparison of Open Source vs Closes Source Software in Organisation

D ....................................................................................................................... 134 
Table 5.19: Demographic of Organisation E ........................................................... 135 
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Table 5.20: Porter’s 5 Forces on Organisation E ..................................................... 137
Table 5.21: Open Source Software Used in Organisation E.................................... 141
Table 5.22: Comparison of Open Source and Closes Source Software in Organisation
E ....................................................................................................................... 141
Table 5.23: Demographic of Organisation F ........................................................... 143
Table 5.24: Open Source Software Used in Organisation F .................................... 151
Table 5.25: Comparison of Open Source vs Closes Source Software in Organisation
F ....................................................................................................................... 151
Table 6.1: Results of Regression Analysis............................................................... 159
Table 6.2: Respondents Role in Organisation.......................................................... 174
Table 6.3: IT Department Role ................................................................................ 175
Table 6.4: IT Reinvestment...................................................................................... 176
Table 6.5: IT Procurement Sources.......................................................................... 177
Table 6.6: Necessity of Modifying Software ........................................................... 178
Table 6.7: IT Success Measures............................................................................... 179
Table 6.8: Issues Facing Industry ............................................................................ 181
Table 6.9: Environment’s impact on IT Strategy..................................................... 182
Table 6.10: State of Singapore IT Industry.............................................................. 183
Table 6.11: Top 5 Concerns ..................................................................................... 184
Table 6.12: Concerns occupying most time............................................................. 185
Table 6.13: Priority Issues ....................................................................................... 186

Table 6.14: Products used and Importance .............................................................. 188
Table 6.15: Origins of Organisations’ Open Source Use......................................... 189
Table 6.16: Open Source Implementation Experience ............................................ 190
Table 6.17: Expansion of use ................................................................................... 192
Table 6.18: Open Source Software Adoption Factors ............................................. 192
Table 6.19: Open Source Issues ............................................................................... 193
Table 7.1: Interviews................................................................................................ 199
Table 7.2: Results of Regression Analysis............................................................... 204

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List of Appendices
Appendix A
BSD Licence
Appendix B
GNU General Public License
Appendix C
GNU Lesser General Public License
Appendix D
Mozilla Public License
Appendix E
Prior Study
Appendix F
Interview Introductory Letter
Appendix G

Interview Protocol

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1.

Edmund Koh

Introduction
This chapter provides a background to the research problem. It begins with an
overview of the software industry and an examination of intellectual property.
Open source software is then examined, highlighting its growth in recent
years. The research question and its objectives are then examined. The scope
of the research as well as the methodology is outlined. The chapter also
includes a brief description of the organisation of the dissertation.

1.1

Background to the Research
The development and distribution of computer software has undergone an

evolutionary process. This saw it move from a largely customer-specific
product during the period from the mid 60s to the early 80s, to one that is
both highly generic in nature and protected by intellectual property laws.

Prior to the 1960s, computer software was seen as mere algorithms and not as
processes or machines (The History of Software Patents n.d.). Computer
manufacturers distributed software free of charge as part of their customer
service policy (Johnson 1998).

This changed when IBM, the leading

computer manufacturer at the time, announced in June 1969 that the pricing
of software would be separated from that of pricing hardware (Johnson
1998). This ‘unbundling’ of software is seen as the starting point of the
software industry and was further reinforced by the U.S. Supreme Court
decision to grant a software patent in the case of Diamond vs. Diehr (The
History of Software Patents n.d.). Computer software was thus recognized as
a form of intellectual property.

Intellectual Property is defined as “intangible property that is a result of
creativity, such as patents, copyrights, etc.” (Oxford English Dictionary 1998
intellectual property). Computer software fits this definition and is covered in
most countries by some form of copyright law (Evers 2000). Copyright is

Introduction

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Edmund Koh

“the exclusive, legally secured right to publish, reproduce, and sell the matter
and form of a literary, musical, dramatic or artistic work” (Encyclopaedia
Britannica copyright). This grant the creator five exclusive rights over his or
her work (Evers 2000):


Reproduction Right: The right to duplicate work in fixed format



Modification Right: The right to modify work to create something
new. The result is called ‘derived work”



Distribution Right: The right to distribute the work to the public



Public Performance Right: The right to play, dance, act or show the
work at public places, or to transmit it in public



Public Display Right: The right to show a copy of the work at a public
place or to transmit it to the public


These rights enable software creators to license software to potential users for
a set fee and to generate revenue based on that fee. A number of software
companies such as Microsoft and Oracle have benefited greatly through the
application of copyright law (Fortune n.d.).

Unfortunately, the restrictions on the use and distribution of software
imposed automatically by copyright law are undesirable to an ever-increasing
number of companies. An alternative approach to software development has
emerged, namely Open Source Software. As a rule, open source software is
peer reviewed and has demonstrated a level of reliability and robustness that
can match and even surpass commercial software (The Open Source Initiative
n.d.). Open source software is distributed freely and thus potentially reduces
the total amount spent on information technology within an organization

Introduction

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Edmund Koh

(TechRepublic 1999). The licensing, however, is quite different from
traditional software licensing.

Open source software is defined by its attached licence which abandons the
essential rights granted to the original creator under copyright law. This gives
anyone the opportunity to distribute and modify any received open source
software (Evers 2000).


One notable example of the growing significance of open source software is
the Linux operating system. Linux has gained a 1% market share in the client
operating system market and a 27% market share in the server market
(Kusnetzky & Gillen, 2001). Other examples, such as the Apache web server,
mySQL database and sendmail email server, are expected to play an
increasingly important role in the Information Systems (IS) function of
organizations in the future.

A number of studies have been done to analyse the adoption of Open Source
technologies (Evers 2000; Murray 2000; Pedhazur and McClure 1999) but all
these studies were explorative in nature and none of these studies have
specifically addressed the market in Singapore. A study of this particular
market is indicated because of Singapore’s significance as a regional and
global economic hub and its relatively highly developed technological
environment.

1.2

Justification for the Study
The proposed study can be justified on the following grounds.

Introduction



The size of the industry involved




Current gaps in the literature



Possible benefits in outcomes for practitioners

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1.2.1 Size of the Industry
Singapore currently has one of the largest computing industries in South East
Asia. Seventy seven percent of all business sites have at least one standalone
personal computer present; ninety three percent for businesses with over ten
employees (iDA 2005a). It had an estimated information and communications
manpower of 111,400 in 2003 (iDA 2005b). There are an estimated
1,001,000 personal computers and 239,000 servers (Gartner DataQuest
2000). On 6 June 2000, Singapore announced an e-government initiative to
improve the IT used by the government, to perform more services online and
to use the Internet to offer new services (Gartner DataQuest 2000). Deputy
Prime Minister Tony Tan said that the Singapore government plans to spend
S$1.5 billion during the next five years to support this initiative (Gartner
DataQuest 2000). The growth in IT spending has steadily increased until, in
the financial year of 2008, the government announced its intention to spend
up to S$1 billion in Infocomm Tenders (iDA 2008). With a total population
of roughly 4 million residents and a total of more than 100,000 companies
(Singapore Department of Statistics 2005), affordable computer software is

critical to the Singaporean Economy.

In Singapore and globally, there is an increasing interest in Open Source
technologies especially in Linux, which is one of the most notable examples
of this. A leading analyst for Merrill Lynch, an investment bank, argues that
open-source can be “disruptive technology” that could topple industry
heavyweights as Microsoft and Sun. (Economist 2001).

Disruptive Technology is a term popularised by Christensen in his book The
Innovator’s Dilemma (1997). Open Source could be seen as a shift in the
paradigm in which software is produced, distributed and used (TechRepublic
1999) and where ownership of the software no longer belongs to any single
entity. Christensen (1997) believes that the main reason that successful and
apparently well-run and well established organizations lose market share and
sometimes go out of business is that they fail to recognize the distinction

Introduction

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between sustaining and disruptive technologies. It remains to be seen whether
Open Source Software, such as Linux, could achieve this outcome

In October 2000 the Linux User Group (Linux Users' Group Singapore, 2001)
was formed, advocating the use of open source software. Their objective is to

promote the growth and development of knowledge with respect to the
development, evolution, use and popularity of the Linux Operating System
and other associated software and hardware (Constitution of Linux Users’
Group Singapore n.d.). It has held several meetings, seminars, and hosts a
website ( which is used as a forum promoting open
source technologies in Singapore. It has not yet initiated any empirical studies
on the penetration of Linux and similar technologies.

1.2.2 Literature Review
So far there have been only few studies exploring the adoption of open source
software in various countries. Such a study has never been undertaken
specifically for Singapore. This research will, therefore, add to the
Information Systems body of literature.

Although the history of Open Source Software is considered to have started at
the dawn of computer technology (Economist 2001; Murray 2000; Evers,
2000), research on its impact on business has only begun during the late
1990s. Very few empirical studies have been undertaken on the subject
despite its wide media coverage and a vast number of practitioners’ articles.
Murray (2000) has addressed Open Source Adoption in Ireland and Evers
(2000) has addressed its impact on software development in Germany. The
most recent work done in the adoption of Open Source Software done at the
time of this research is Mindel, Mui, and Verma’s (2007) paper on Open
Source Software Adoption in Association of South East Asian Nations
(ASEAN) Member Countries. Unfortunately, this research is severely limited
as it only examines whether organisations in ASEAN member countries used

Introduction

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Edmund Koh

open source in their web server applications and not what factors had driven
them towards the use of Open Source Software.

1.2.3 Benefits to Practitioners
This research offers several benefits for practitioners. The research will
provide practitioners with a better insight into the Open Source market place
in Singapore. It will help IT managers select and implement open source
solutions within their organizations. Distributors such as Red Hat Enterprise
and Caldera International Inc. will also benefit from the findings by
identifying ways of how to better tailor their products towards the
Singaporean marketplace.

Similarly, software developers considering the Open Source model will also
gain insight on where and how their software is being used, which may help
them in developing software that better suits their users’ needs. Finally, IT
managers who are considering using Open Source products will be better able
to understand some of the advantages and disadvantages associated with
Open Source adoption.

1.3

Research Problem
This research intends to address the following research question:
What are the factors leading Singaporean organizations to adopt Open Source

Software?

It will specifically explore what kinds of business are adopting Open Source
Software, in what areas, and for what reasons. It will also examine if there is
resistance to this new paradigm and what is its future. The unit of analysis is
the organisation.

Introduction

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1.4

Edmund Koh

Methodology
A variety of qualitative research techniques have been employed in IS
research (Markus & Lee 1999; Myers 1997), including ‘‘Revealed Causal
Mapping’’(Nelson et al 2000), ‘‘repertory grids’’ (Hunter & Bock 2000) and
content analysis (Altinkemer K et al 1994; Pliskin & Romm 1997).

This study follows a post-positivist paradigm through the use of a MultiOrganisational Case Study, conducted using in-depth interviews. McPhail
(1996) groups research into three fundamental types, exploratory, descriptive
and causal research. This study is exploratory in nature and is focused on
developing a good grasp of the situation, which is the facts, people and
concerns and to discover ideas and to generate ideas with which to clarify the
research issue and model (McPhail 2001; Zikmund 2001; Neuman 1997). In

this study, six organisations are studied, segmented into small, medium and
large companies, which have already adopted Open Source Software. These
organisations were introduced to the researcher by Red Hat Software, a
leading provider of Open Source Software solutions to the Singaporean
marketplace.

Table 1.1: Interview Cases
6 In-depth Interviews
Small
Medium
Large

Companies
2 Cases
2 Cases
2 Cases

A prior study was conducted that informed the development of the research
model and the interview questions. Several limitations were found in the
execution of this prior study, mainly due to a low response rate. The response
rate (1.97 %) was considered poor and thus the results of that study cannot be
generalised to the population (Zikmund 2001). Measures were taken - such as
survey pre-testing and contacting non-respondents - to increase the response
rate. The poor result may also be explained by limitations beyond the control
of the researcher, such as:

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

Edmund Koh

Lack of access to a current and accurate database of Singaporean
Firms



Limited time



Limited budget

The use of the Green Book CD-Rom yielded undeliverable mail responses of
ten percent and over fifty two percent undeliverable email responses. A more
accurate database would hopefully reduce this number. Limited time and
budget also contributed to the low response rate. Polling a larger percentage
of the sample population might yield a larger number of usable responses.

The Prior Study was conducted in 2001, before embarking on this research
Masters. It was used to refine the research model developed from the
Literature Review (Chapter 3) and to assist in the formulation of the
interview protocol used in the Data Analysis (Chapter 6). A description of the
Prior Study is included in Appendix E.


1.5

Principal Findings
The principal finding in driving the adoption of Open Source Software in the
study was the perception of a cost advantage. The organisations interviewed
have acknowledged costs to be one of their biggest concerns and top
priorities. The interesting thing about the outcome of the case study is that
while costs appear to be a major concern to the cases, objective measures of
costs such as Total Cost of Ownership (TCO) and Return on Investment
(ROI) are rarely used amongst the cases. The perception of low cost is led by
industry sources such as publications, conferences and websites.

Introduction

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Queensland University of Technology

Edmund Koh

The next principal finding is the greater need for open source software skills
in the industry. One of the major drivers of Open Source Software Adoption
in the cases is that they posses pre-existing skills on Open Source Software
use. This enables them to mitigate risk and to lower training costs.

The final principal finding is that Open Source Software appears to be used
mainly in systems infrastructure that runs important, critical applications.
Organisations interviewed reported a large degree of satisfaction with open
source including increased stability, scalability and cost effectiveness. Issues

with Open Source Software include manageability, its quality of support and
ease of use.

1.6

Contribution
This research examines the history of software from the beginnings of the
United States software industry to the current market for Open Source
Software licences and Closed Source Software Licences. Informed by a prior
study, this research has developed a framework of Open Source Software
Adoption leading organisations to adopt or not to adopt open source software.
The prior study suggests a relationship between External Organisational
Factors and External Information Technology Factors and the use of Open
Source Software. Organisational comparisons in the analysis of the case study
uncovered the major issue of cost; it was repeatedly mentioned in the
interviews conducted. Other considerations such as staffing and competitive
pressures are also revealed.

1.7

Outline of the report
This introductory chapter provided a brief background to the study and
presents an overview of the research question and its objectives. The scope of
the research as well as the methodology is outlined.

Introduction

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Queensland University of Technology

Edmund Koh

The second chapter in this study represents the background review. A brief
history of the overall software distribution industry is examined along with its
impact on the current software market.

The third chapter presents the literature review. A current analysis of Open
Source Software is given including its precise definition, history and specific
examples of its successes. Factors leading to its adoption and rejection are
then examined. Following this, a framework of Open Source Software
Adoption is proposed and several major factors are selected for further
discussion.

The fourth chapter contains the discussion of the methodological techniques
employed for this research. It discusses the development and adoption of
testing instruments used in this study; the measures taken to ensure Validity
and Reliability; the Research Design; Sampling and Case selection; the
interview protocol; and, its analysis.

The fifth chapter contains a report on the data collected from the applied
research. A discussion on the various organisations is presented along with
any other research issues which arose.

The sixth chapter contains an analysis on the data collected from the applied
research. The results on the prior study are presented and its impact
discussed. The organisations are examined individually followed by a cross
case analysis detailing the findings of this research


The seventh chapter provides a summary of this research where the research
question, its design and methodology used are stated, followed by the
framework used and the findings. The contribution of this research is then
presented, followed by directions for further research.

Introduction

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Queensland University of Technology

Introduction

Edmund Koh

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