Community Calls For OSS Contributions by Banks 106
Erikson Wright writes to mention a ZDNet article, covering a call by open-source vendors to banking institutions. The groups are asking powerful financial firms to contribute more code to the open source community. From the article: "Concerns over competitive advantage mean that it can be difficult to persuade companies to share code with the open-source community, as it can then be easily accessed by competitors. But for technologies that have little impact on competitive advantage, financial companies could probably be encouraged to contribute code, the conference panel agreed ... 'If you're using open-source technology on Wall Street, unless you're completely reliant on a vendor to provide a certified version, you will probably invest extra time to fix it,' he said. 'What will you do with your fix? You can keep it to yourself, but if you move it upstream by passing it on to the vendor or submitting it as a patch, you know it will be available in the next version of the product. That's what drives most open- source development--collective self-interest.'"
It's a threat! (Score:1, Interesting)
How long before the US government classifies this as a "National Security Risk" and bans the use of opensource in the banking industry?
http://religiousfreaks.com/ [religiousfreaks.com]Re:It's a threat! (Score:5, Insightful)
Banks are generally reluctant to collaborate with other members of the financial community as they are worried about giving advantages to competitors
Most banks (I work at one) are paranoid about lawsuits for absolutely anything (ex: if you wouldn't have shared you source code, that hacker wouldn't have found the flaw, and you wouldn't have lost your customer's information)... and so if they think that it could turn around and shoot them in the foot
Liability (Score:2, Insightful)
Re:Liability (Score:2)
I mean they can always play the blame game, but can they escape liability claims because of it?
Or is that why there are clauses "this software is should not be used in nuclear power plants" on some software packages? (That one is from Java IIRC.)
OSS (Score:1)
Re:OSS (Score:1)
Re:OSS (Score:1)
Re:OSS (Score:3, Insightful)
Re:OSS (Score:1)
This statement is true, assuming that particular piece of software/technology offers competitive advantage. But from the rest of your post, I get the impression you're not fully considering 'Enabling Technology vs. Business Differentiation' Not every type of technolgy offers competitive advantage/differentiation to a businesses.
Anyway. If you haven't already, check out Bruce Pe
Re:OSS (Score:2)
Software is important. Software does provide an advantage.
Nobody is saying that they should contribute the core banking systems and methods that makes them unique.
However, for the sake of argument, lets assume a bank's Web servers run on Linux. Why shouldn't they contribute apache patches? mailing system patches? utilities?
These are things that be
Re:OSS (Score:1)
dirty (Score:2, Offtopic)
Article Text (Score:2, Informative)
By Ingrid Marson, ZDNet UK
Thursday , April 27 2006 10:42 AM
Major open-source vendors on Tuesday called for financial companies to contribute more code to the open-source community.
"How many here have open-source developers working at their company?" Carl Drisko, Novell's Linux and open-source principal, asked the audience during a panel at the Linux on Wall Street conference in New York.
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Relatively few members of the audience raised their hands, to which Drisko
frpost (Score:2)
but I don't think TFA meant that sort of code!
Congrats - you made me smile - and waste even more of my working day on /.
Re:Article Text (Score:1)
Aint' gonna happen. (Score:1, Funny)
It's to the point that they act almost paranoid that everyone is out to get them.
Re:Aint' gonna happen. (Score:2)
Do you have some retarded idea that the software they deveop would be useful to you? No, it's account
Re:Aint' gonna happen. (Score:3, Interesting)
We also contribute financially to companies who provide support (e.g. RedHat, JBoss etc).
Interesting (Score:2)
more code.. (Score:1, Offtopic)
though, just noticed the other day that MS seems to have some "code-sharing" initiative they have done..
though, for some reason I cannot seem to force myself to download *any* of it..
Not Just in Banking (Score:5, Insightful)
I can't find it anymore, but Scott McNealy wrote a very good piece on Open Sourcing and industry collaboration. His key point was that anything that does not give your company a competitive advantage is not worth maintaining individually. The only time you should waste the resources on solely developing a technology is when it puts you ahead of your competitors. To use the banking industry as an example, there's no need for everyone to write their own accounting packages. There's very little you're going to gain over your competitors. However, a market analysis package that contains proprietary formulas for market predictions and benchmarking is most certainly worth keeping private. The information contained in the software can give you a huge advantage over your competitors.
So in short, it's all about spending your resources wisely. Open Source and Industry Standards just happen to be tools that help companies do that.
Re:Not Just in Banking (Score:2, Informative)
Re:Not Just in Banking (Score:2)
That said, this is all a bit offtopic, as the real discussion is about contributing patches to, say, python-dateutil and not bits of proprietary secrets.
Re:Not Just in Banking (Score:1)
I'd completely disagree.
I used to work on systems for mortgage and insurance, and to financial companies, their software for managing customer accounts is very valuable.
Banks are basically all about data processing and product development. There's almost nothing physical (cash, and not much of that now). Banks having better software than their competitors is what can mean that they can launch better
Re:Not Just in Banking (Score:2)
I think there's a fairly strong and unsubstantiated knee-jerk reaction from a lot of business people around the implementation of open source software in their organization, particularly financial ones. They seem to feel like there's some lack of control over the code that gets compiled in, and fear that there may be some Office Space-like hidden worm that's siphoning off resources. I've sat and explained
Re:Not Just in Banking (Score:2)
It was on Sun's website a few years back. Unfortunately, it may not exist anymore. Sun has a habit of replacing their pages with newer and "better" ones whenever they feel like it. I tried Googling their site, but I couldn't find anything more recent than 2006.
It's really too bad. It was a pretty good article, and I have to say that I agreed with it. You can still hear echos of it in McNealy's more recent "Don't build a custom [gcn.com]
Re:Not Just in Banking (Score:2)
With Open Source, you don't.
Re:Not Just in Banking (Score:2)
Re:Not Just in Banking (Score:4, Insightful)
The thing is, in a relatively free market, the goal of companies is not to help other companies, but to take their customers. Software provides a competitive advantage that can't be overlooked. It certainly does in my own business, and I'll share my software only over my dead body. If not for my custom software, I would not be able to compete as well as I do. I don't want to help other companies in my same industry.
Re:Not Just in Banking (Score:4, Insightful)
Your argument is a total non-argument. You've completely agreed with me, only you're ignoring the areas where you use cooperative software because it isn't part of your core business. And that is the core point:
If it isn't part of your core business, it isn't worth developing in-house.
Re:Not Just in Banking (Score:3, Insightful)
Re:Not Just in Banking (Score:3, Insightful)
I have a retail store that uses software (that I wrote) that lets us put all of our inventory online, in real-time, straight from our POS system. New items get added instantly, and the inventory is always correct, and it's all processed in the same system. That software puts us waaaaay ahead of most of our competition in the industry. THAT software most de
Re: (Score:1)
Re:Not Just in Banking (Score:2)
Which implies, interestingly, that almost all software developed for the public sector should be Open Source.
Re:Not Just in Banking (Score:2)
It's not that simple. Most banks use vendor software for their main processing. It's the ancillary hooks that are written in-house.
Architecture degredation? (Score:2)
And if the solution is to reject their changes into the source tree, what incentive is there for banks (see, I'm tying it into the article
Re:Architecture degredation? (Score:3, Interesting)
Re:Architecture degredation? (Score:2)
Re:Architecture degredation? (Score:2)
You don't, just like you don't in commercial software. Microsoft is FAMOUS for doing just what you describe, but it happens to most software projects. Eventually all of these hacks add up and a complete module or application has to have a major rewrite. The best way around this is for a developer to not incorporate hacks into the project, but rejecting the submissions is not th
Utilities too (Score:3, Interesting)
How can you fire the programmers? (Score:2)
quick only results from gross misconduct. How can any individual coder
be accused of gross misconduct for a bad product arising from a TEAM effort?
Unless management went through the code module by module and tallied up the
bugs in each and fired anyones who tally when over some limit. Even so, I
feel some lawsuits gestating if this really is true (and not simply journo
hype).
Re:How can you fire the programmers? (Score:2)
Re:How can you fire the programmers? (Score:2)
It saves them money. (Score:1)
So, the question is: How can you show that it will save them money to give back to OSS?
If they give back to OSS, it means that they won't have to continually re-integrate their changes into the core. In addition to saving them the obvious expense of the insertion, it also saves them the expense if the core has changed in some way that makes their "enhancement" incompatible. In th
Forget it... (Score:3, Insightful)
So I do not see this happen, very little companies in this branche will see any tool (software, procedure or whatever) as being non essential to having their own edge.
BANKS? Are you kidding? (Score:3, Insightful)
Re:BANKS? Are you kidding? (Score:2)
I work for an investment bank and we give a LOT back. We have several charity's that we contribute significant sums to (both Employees and the company). We also contribute both source code (on the rare occasions that we do make in-house mods) as well as support through various channels (irc, web, etc.)
Many very important contributions to Linux have come from banks. Maybe more would if Linux could finally reach the g
Re:BANKS? Are you kidding? (Score:2)
I suspect that has more to do with PR and/or reducing the company tax liability than anything else.
However, GP was partly off the mark.
Re:BANKS? Are you kidding? (Score:2)
So what, is the money dirty because of it?
Disadvantage (Score:2)
That's what it comes down to. If you are in a compettitve market, you need an edge, something you have that your competitors don't, that gives you more strength
Re:Disadvantage (Score:3, Insightful)
Any company that is run by anybody with an IQ greater than that of an eggplant that has a competitive advantage with their software will realize that "contributing" will hurt their bottom line. That's just business 1
Re:Disadvantage (Score:2)
Anyway, to the topic at hand, a number of financial applications in the industry are usually customized to some degree or another, which somewhat limits any real portability of the code. We're not talking about Money 2006 for the masses. While some of the applications may
It starts at the bottom... (Score:1)
Banking industry or not, don't expect some middle-aged Director or CIO to stick their neck out at the next board meeting and say, "lets share everybody! c'mon!".
Its going to start with some techs, at the bottom, grumbling about having to apply the same patch *again* because the fix didn't make it into the latest release. When the Marketing Director wonders why initiative X has to be postponed, and its because of this redundant patch cycle, they'll table it and give it due consideration. If the process
Re:It starts at the bottom... (Score:2)
There is no PR value in switching to an Open Source product.
Let me say that again.
There is no PR value in switching to an Open Source product.
Clients do not care what your system runs on. They want the lowest interest rates, fast and friendly service, and low service fees. The more technologically inclined don't even care about the 'fast and friendly service' because t
Re:It starts at the bottom... (Score:2)
Don't be like an old roommate of mine... (Score:4, Insightful)
My take on this is: Don't offer to freely share your software and then complain that there is no reciprocal sharing later. You did not freely share. If financial institutions are honoring the applicable licenses for the software they are using then leave them alone. Otherwise your offer was disingenuous and you become an asshole like my roommate turned out to be. If you can't sleep at night because there is no sharing in return, change the license and quit belly-aching about it because not everyone is going to get caught up in the spirit of open source software the way you would like them to.
Re:Don't be like an old roommate of mine... (Score:2)
I don't share software to be an altruist who gets off on sharing. I share software because that kind of software is the only software I will use because it's in my own self-interest.
As such, I will happily complain about banks not sharing the internal changes they've made to their software. Or Amazon for that matter. I didn't 'offer to clean their lavatory'. I made a contribution to a whole pile of tools because I hope to use those tools myself someday and want to make them better.
Re:Don't be like an old roommate of mine... (Score:1)
Re:Don't be like an old roommate of mine... (Score:2)
I would like to think that some things can be managed without a legal billy-club to hit people with.
I'm not opposed to an organization having private changes internally. But I do think that pointing out to those organizations that having those private changes internally is generally against their own best interests and doing the community as a whole a disservice is not wrong.
I believe that the GPLv3 does not have such a clause. If it did, I wouldn't want to use it, and I remember being generally pleased
www.openadaptor.org (Score:4, Informative)
Openadaptor was open-sourced by investment bank DrKW in 2001
"openadaptor is a Java/XML-based software platform which allows for rapid business system integration with little or no custom programming.
openadaptor can be loosely classified as EAI (Enterprise Application Integration) software. It is highly extensible and provides many ready-built interface components for JMS, LDAP, Mail, MQ Series, Oracle, Sybase and MSSQL Server as well as data exchange formats such as XML. New components are regularly added."
See also this story [slashdot.org] from slashdot in 2001.
Disclaimer (not that it matters): I was involved in the launch in 2001
What about Credit Unions (Score:3, Insightful)
I can understand Banks inherent unwillingness to contribute to OSS. I don't agree with it, but the culture is very averse to collaboration with anyone or anything outside the bank.
Credit unions, on the other hand, love to collaborate all over the place. They share ATMs, branches, information...all sorts of stuff. However, when it comes to things technology (core processing, etc), they share many of the same fears and behaviors as banks.
CU's have many of the same core values that OSS has. I've often wondered why 15 or so don't band together and create a full open source environment from the ground up. It would benefit members at the bottom line, as well as give the CU world important flexibility in competing with banks. Properly, executed, of course.
Comment removed (Score:4, Insightful)
What banks are for (Score:2)
10 HOME
20 PRINT "I LOVE BANKS!"
30 GOTO 20
If that's useful to someone's ego (who works in a bank) and willing to contribute in cash, call me.
Thanks for your attention.
Re:What banks are for (Score:3, Funny)
Here's my version, its MUCH better to a banking person.
000100 IDENTIFICATION DIVISION.
000200 PROGRAM-ID. LOVEBANKS.
000300 DATE-WRITTEN. 27/04/06 16:57.
000400* AUTHOR GBJBAANB
000500 ENVIRONMENT DIVISION.
000600 CONFIGURATION SECTION.
000700 SOURCE-COMPUTER. RM-COBOL.
000800 OBJECT-COMPUTER. RM-COBOL.
000900
001000 DATA DIVISION.
001100 FILE SECTION.
001200
100000 PROCEDURE DIVISION.
100100
100200 MAIN
Re:What banks are for (Score:2)
What ever happened to AMQ? (Score:1)
http://it.slashdot.org/article.pl?sid=05/02/08/19
Crap article (Score:2)
What "Major open source vendors"? HP and Novell. 2. And those major vendors weren't calling on all banks to contribute more code, they were suggesting that firms on WALL STREET (the entire financial services industry, not just banks) could get more from Open Source if they were more open about what they used and what they wanted. The entire article is a subtle spin to paint OSS as victims and the entire financial services industry as pack of wolves. And tha
Re:Crap article (Score:1)
Re:Crap article (Score:1)
Let me see... (Score:2, Interesting)
Why should my bank spend my invested money giving out free code to people I don't do business with?
I'm not just talking about some sort of obligation to the common good, because, lets face it, when did a bank ever act for the common good?
Re:Let me see... (Score:1)
Even if these people are coders and they have made modifications, are you saying that free software isn't free at all because you have to spend time you charge your customers for justifying your use of it?
Here I was thinking that software that was provided to me for free actually didn't require me to pay
Re:Quantlib (Score:1)
not likely (Score:3, Informative)
It is easy to say that banks should contribute. It is equally as easy to tell a farmer that he should convice his roosters laying eggs. Making it happen? Thats another story.
Banks are HIGHLY regulated (Score:2)
Do you really think a bunch of non-technical buearacrats are going to allow banks to just switch to open source? Please, get real! If you want banks to use OSS then you ha
Ain't Gonna Happen Soon, If Ever (Score:1)