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author | Matěj Cepl <mcepl@cepl.eu> | 2018-10-08 00:27:44 +0200 |
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committer | Matěj Cepl <mcepl@cepl.eu> | 2018-10-08 00:27:44 +0200 |
commit | d5bc8727efcc65a3c37895a41419834cc3ca8851 (patch) | |
tree | 0f2d7f86f72d2e28fb80a0afb1d21c404ab5d8f9 /research | |
parent | d7facb69bb4763f129ce5c3a7568aab0ca7b8ec7 (diff) | |
download | blog-source-d5bc8727efcc65a3c37895a41419834cc3ca8851.tar.gz |
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-rw-r--r-- | research/nature-of-red-hat.rst | 146 |
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diff --git a/research/nature-of-red-hat.rst b/research/nature-of-red-hat.rst new file mode 100644 index 0000000..678e7be --- /dev/null +++ b/research/nature-of-red-hat.rst @@ -0,0 +1,146 @@ +The Nature of the Red Hat +######################### + +:date: 2018-09-20T11:55:11 +:status: draft +:category: computer +:tags: research, economics, FLOSS + + +Abstract +======== + +Article applies theory of XC`@coase:1937nature` to the +reality of the open source development communities and explains +role of Red Hat in these communities. Finds a similarity between +free market exchange and independent open source developers on +one side and firms on the other side. + +Author argues, that despite obvious advantages of the open source +development model, the traditional centrally managed model of +development cannot be ignored completely, and it could be useful +to crystallize free-flowing open-source community development. + +The Nature of the Firm +====================== + + +Michael Tiemann described in +:xcite:`@michael_tiemann:2018awesome` how the open source +development model is superior to proprietary solutions because of +the lower transaction costs citing mostly +XC`@oliver_e._williamson:prize` and referring to +:xcite:`@coase_prize_nodate` + +However, there is another part of the Coase’s thinking which +I believe is very relevant to the nature of larger companies in +the middle of the open source universe, which was not coverred in +the article. + +VC`@coase:1990notes` describes the economical thinking of +that time in the issues related to the theory of firm as +basically following the classical theory of +XC`@smith:1993inquiry`, which was thinking mostly only about +the free market exchange of multiple independent producers and +considered that to be the efficient tool for organization of +economy. Professor Coase's thinking is (in contrast to majority +of economists even today) very strongly empirical so the first +impulse for writing the article was his observation that actually +the world doesn't work as predicted by the classical theory and +instead of majority of the economical exchange being done between +multiple small independent actors, major part of economy is +dominated by huge firms. After all, this is 1930s we are talking +about, the time of huge completely vertically integrated +companies owning everything from raw materials needed for +production to the company kindergarten for employees. + +The critical insight of the article was discovery of *transaction +costs*. Coase's observation (quite commonsensical when you read +about it, but he was really the first one to focus on it) was +that transaction on free market do not cost only what's need for +procuring materials, manufacturing etc., but that there is a +quite non-negligible cost associated with finding a transaction +partners, negotiating transaction, policing performance of the +transaction, and also possible costs related to the enforcement +of the contract. + +Contrasting to the transaction costs-bearing free market +contracts, organization of transactions in firms carries just +relatively negligible transaction costs. Superior just orders his +employee to do something and that's it. No transaction needs to +be organized. And although the transaction costs is certianly +never zero, it is quite smaller than what's required by the +contractual arrangements. + +That is not to say, that firms are always the ideal solution +(otherwise, our economy would cosists only from employees and +their relatively few employers). +XC`@parkinson:1968parkinsons` shown as persuasively that the +cost of running firm is far from zero and quite often quite +non-negligible (the same thing has been described obviously by +many many others, we can start with XC`@weber:1966max` and +his concept of “routinization of charisma”). + +Therefore, Coase continues, there is no silver-bullet for +business organization (which is what we see in reality), but +decision on which part of economy is organized based on open +market principles and which is run by firms is made based on many +factors described in the article. + +.. Analyze exactly what the original article says, don't rely on Wikipedia!!! + + +Free software community development +=================================== + +I understand that this article will be read by people who know +about free software style community development more than I do, +but let me state here just an outline of what I think are the +most important components of such development style, so that we +know where I am coming from (and as a security for those few +non-technical readers I hope in my endless optimism to reach). + +In this article I want to talk about the free software community +development as a style of software devleopment, without +questioning other possible understandings of it. Looking from +this point of view, this style of the software development grown +up as a reaction against the proprietary centralized +top-down-controlled style of the software development +stereotypically attached to the development in large commercial +software companies like Microsoft, IBM, or Oracle. Again, I don't +argue about other differences between free software and +proprietary software (especially concerning copyright law +issues), but they are not relevant for the point of this article. + +The classical description of what I understand free software +community development is in XC`@raymond:1999cathedral`, but +I would argue that more important difference than between closed +and open style of development is the one between design-driven +and “anarchic? patch drive? bottom-up”. + +.. ******************************************* + +no problems to organize a lot of resources, problem to do non-fun +work (cleanup of the code -- although LibreOffice seems to make +it work, why???; QA, testing, documentation). + +it's difficult to do large design (even in the rare cases when it +is needed) + +it is almost impossible to rationalize code (e.g., +CryptoConsolidation; rewrites of small libraries to remove +dependencies on unmaintained code) + + +Organizational role of companies in the open source universe +============================================================ + +XC`@whitehurst:2011how` + +Most of the advocates of the free software point out obvious +advantages of the development model in the manner very similar to +what are obvious advantages (at least to somebody who experienced +other arrangements of market) of the self-controlling free +market. EXAMPLES + +.. bibliography:: |