Open source software is successfully displacing proprietary applications in many large companies and eating into the annual revenues of proprietary software vendors by $60bn per year, according to research.

Earlier this week an article concerning Vista and market share and one about how Open Source Software has cost the IT Industry $60 Billion dollars over the last five years or so hit the newswire. Needless to say this generated some conversations about their validity.

Financial and ERP applications are arguably the last bastion of proprietary software giants, but the Kuali Foundation wants to eliminate those remaining barriers to open source enterprise systems, at least in the educational realm.

Your systems are all way overdue for an operating system upgrade, but your IT department is going over budget. You know you can’t afford the latest version of Microsoft Windows or Office. The easiest path to reining in your costs would be to migrate over to the Linux operating system. Unfortunately, corporate headquarters isn’t convinced that Linux is the way to go.

I’m starting to see some big potential for symbiosis between two Linux and open source leaders: Red Hat and Ubuntu. Red Hat’s departure from the consumer desktop Linux market comes at the same time Ubuntu continues rolling in the same market with the release of Ubuntu 8.04 Hardy Heron this week.

The convergence of open source with managed services and software as a service (SaaS) continues. The latest example: Red Hat, arguably the world’s best-known open source company, has created two staff positions to serve hosting partners. Plus, Red Hat is evaluating a strategy to work more closely with managed service providers, MSPmentor has learned. Here’s the scoop.

Once relegated to the data center and the personal machines of IT pros who were the only ones able to use it, Linux has come a long way as an operating system. It's making its way into mainstream use, and it's a viable option for small businesses looking to keep their IT costs down.

Custom system builders are among the specialists able to embrace open source as a new prospect for success. Linux's emergence as a completely viable open source operating system has attracted many start-ups on a budget, in addition to a growing recognition by proprietary vendors (and their enterprise and SMB clients) of the benefits of open solutions.