Successful financing in a recession

Running a successful business in a recession is not always easy. You must be creative in order to save money. In these times, it is merely about following Darwin’s principle “survival of the fittest”.

Many entrepreneurs have begun to simply sacrifice nonessential products and services while they run their business. Of course, this is part of running a successful business even in the best of economic times. But there are other approaches that allow entrepreneurs to successfully operate their business and avoid unnecessary debt.

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Use a Recession to Create an Edge

Many would-be entrepreneurs would not consider starting a business in the middle of a recession. Understandably, it is a very scary time to begin a venture. Startup capital is low and customers may not be able to afford the products or services you have to offer. On the surface, being an entrepreneur during a recession can be a bone-headed idea.

True entrepreneurs know to look past these images and know that there are no absolutes in business, only perceptions. There may be risks in an unstable economic climate, but there are also opportunities that may not have existed otherwise. This is why more new fortunes are created during times of crisis. During the Great Depression, more new fortunes were created than in any other time in history. See the article Great Depression Millionaires for more information.

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Recession and FOSS

Recession is just a Challenge

Photo by SuMarDi

RecessionIts just a Challenge.

Over the last several months, majority of businesses have been hit brutally by the recession wave. However, it has served as a blessing in disguise for Linux and the FOSS world. A lot of large organizations have found Linux as a pillar to operate upon and migrate to, in today’s cost cutting scenario. This change is pretty much functional in the BPO sector as well. There have been numerous news on them shifting to OpenOffice and Ubuntu, leaving behind their MS counterparts. Free and Open Source movement has traditionally proved to be beneficial for innovation or research related work.

Open Source is one such model which has not been hit hard by the credit crisis and it’s aftermaths because of its open exchange business model wherein users contribute towards the success of one common goal and the companies make money but offering support to the client after the deployment of the product. The same happens with Linux distributions like RedHat Enterprise. The best part about Linux is that it’s not chained to a corporation, instead a community of enthusiastic developers and fanboys.

The severe liquidity crunch prevailing in the markets have resulted in a boon for the Open Source propagators. Many operations which can be run at a bare minimum cost will find its way up the organizational ladder and will prove its usage in critical times. Open Source will also benefit as it is often shipped with a free-license.

An Open Source product or service will be able to get buyers who are bereft of major cash inflows and the business operations shall hence continue successfully. The best thing that could happen to Linux is its emergence as the top alternative to Microsoft. Open Source tools such as PostgreSQL, Ruby, Perl, Python, and Ubuntu etc. can be used as a substitute to do most work that Microsoft does, of course with a difference in terms of use, installation, features and support. This will probably be of tremendous help to FOSS in retaining its “free aspect” USP.

However, experts would know that Linux still has miles to go before it becomes a household name as Microsoft is. An IDC Survey reported,

“55 percent of the 300 IT executives surveyed already had Linux systems in use; a full 97 percent were running Windows.”

Source: IDC

The key to promote Linux effectively not only lies with Linux enthusiasts but also with Open Source vendors who are yet to find out a way in which it can be monetized efficiently to expand recognition amongst its probable user base.

Keeping all considerations in mind, Linux is doing pretty well in the times when the best in other business have shut down. Earlier this year, Ken Huss wrote an interesting article on five reasons why Linux is recession proof and it surely does instill a hope within the Linux community. Today, when money and not time is the problem with most companies suffering with the recession wave, such initiatives can act as a motivating source to develop a product or service that the world needs; proving to the software fraternity that FOSS shall contribute in overcoming recession and probably stand out as a winner.

Have companies started moving towards Linux?

DLL Hell: Haven't you been into this?

Photo by Otacon_85

DLL HellHaven’t you been into this?

As the organizations are hit badly by recession, they are looking towards their goal of high performance and delivery; while cutting down on costs. To secure a stable stand in a highly competitive environment they are required to enhance their profitability by increasing productivity. Various companies have successfully made a move to replace their operations from Windows to Linux. Linux plays a promising role of delivering higher performance, better security, freedom from being locked into a single vendor and ultimately lowering the costs. If I consider on the various benefits offered by Linux over its competitors, you will be thrilled to know how fast Linux has taken itself on rolls and has been playing an ever-increasing role to meet the business challenges. The Linux users will know the literal meaning of being blessed with the flexibility and diversity in running of Linux.

An advantage of Linux OS is that it is multiuser and can be easily accessed from anywhere on the network. This allows the user to have full remote access; unlike single user console based OS which requires the user to be physically present and limits the access to a single user at a time. Here in I am not comparing it with MS Windows which has good networking options as well. Linux is also used extensively because it avoids the MS/Windows “DLL HELL“, which causes Windows or its applications to fail when a newer or incompatible run-time dynamic linked library (DLL) is installed. Moreover, Linux allows the networking to be cycled even without shutting down the entire computer which saves time while performing system reboots and at the same time enhances Linux system uptime.

For Linux OS, the kernel is the base. It is responsible for enabling multi-tasking, multi-user, multi-threading, multi-processing, security, interfacing with hardware. The network Linux can support almost any hardware efficiently and earn savings for the companies by running on both old as well as a new hardware, ruling out the problem of premature hardware replacements. The GNU General Public License (GPL) for Open Source software has led to the rapid development as it allows the users to freely copy modify and share the source code. Today companies dealing in telecommunications to software to hardware are betting their future on Linux.

Linux is regarded as the development platform by the enterprises because it is more secure, easy to install and network, more bug free and maximize value than its competitors. In addition to this, high reliability, flexibility, compatibility and scalability of Linux helps in cutting down of management costs. Unlike free Linux, Windows costs a great deal of money for installation of its versions. Again, almost all the settings in Windows are stored in Windows registry; without which none of the applications are functional. This later leads to slower performance and security threats.

To sum it up, companies are looking towards advanced versions and undoubtedly the merits of Linux are likely to stay with Linux later as well. This is a smart move taken by several companies as most of the problems which are faced while using other OS can be eliminated with the use of Linux, building a new platform for the management to save time and earn savings.