Digium and Open Source Software
Should you consider Asterisk or any of the other open source communications software packages? Our columnist helps you get familiar with the pros and cons, the ins and outs of open source.
I confess I've not been nearly as knowledgeable as I should when it comes to IP telephony/UC open source software (at least I admit it).
Normally, I'd focus more on the "traditional players" but given this knowledge gap and wanting to do something different, I thought I'd take a page from Seinfeld's George Costanza and do the opposite of what I'd normally do (see "Opposite George).
With that, I'd like to thank Mark Amick, Digium's Director of Product Management for all of his assistance with my research for this article and invite you to take a look at the company Digium and their open source software product, Asterisk (www.Digium.com).
Open Source Software (OSS)
As mentioned in my last column, open source software (OSS) is computer software where the source code is made available at no cost with the right to modify the code and make it available to anyone as long as certain term and conditions under which the software is distributed are followed.
Keep in mind that for the OSS community, the concept of "free software" refers to the freedom to run, distribute, change, study, and improve software; not the license cost. In other words, OSS is more like "free speech," rather than "free samples" at Costco. For more on OSS rules/guidelines see http://www.gnu.org/licenses/gpl.html and http://www.opensource.org/docs/osd.
Asterisk the Software, Digium the Company
Asterisk is the open source telephony software created by Mark Spencer in the late 90s as an alternative to more expensive proprietary PBX systems. At the time, Spencer needed a telephone system to distribute customer service calls to his Linux engineers and decided to "build" his own PBX rather than pay for a new system.
Spencer also opted to make Asterisk available as open source software to minimize ongoing development costs (this business model was also consistent with the anti-proprietary software movement of the time). A beautiful example of necessity (+ limited capital funds) being the mother of invention.
Founded in 1999, the company Digium owns/manages the Asterisk intellectual property. What this means is that if a software developer wants to create and sell a new product based on Asterisk code and not make the new product available for free public use, the developer would have to buy a commercial license from Digium for the rights to sell the new "proprietary" product. Because Digium owns the Asterisk intellectual property, it also has the right to value-add and re-package the software for commercial sale.
Note that when I talk about Asterisk I’m referring to it as IP PBX system software, but know that Asterisk can also be an open source voice mail, VoIP gateway, IVR, audio conference bridge, or basic ACD/call center application. For these other apps, see this webpage.
Open Source Software and the IP Telephony Market
I won't spend too much time here, but know that Digium's Asterisk is the most widely used OSS telephony product in the world. Asterisk dominates this market with >85% share.
Typically deployed by SMB customers (I know I'm breaking my SMB rule), Digium holds a 2.5% market share in the North America market, which is comparable to proprietary manufacturers such as Siemens and ShoreTel. Not bad company for an open source product. For more information on Digium and market share, see:
* Allan Sulkin's No Jitter article "2009 Enterprise Communications Market Results: Cisco Retains Leadership Status in a Down Market"
* John Malone's No Jitter article "Open Source PBX is 18% of North America Market"
* Gartner's Corporate Telephony MQ 2009 analysis
Digium's Business Model
If Asterisk is free, open source software, how the heck does Digium make money? Actually, they make money in several ways.
1. Interface cards. Customers still need hardware interfaces for phones and analog devices, central office trunks, and T1/E1 circuits. For example, list price for a T1 card is $730, and a 4-port analog card is $573.80.
2. Training. While Asterisk downloads are free, customers still need training to design, implement, and support the product. If you want to be a "Digium Certified Asterisk Professional" (dCAP), you need their certified training. Training costs vary but to give you an idea, Asterisk FastStart training (an intro class) is $1,995, while the Asterisk Advance course for dCAP certification prep is $3,000. The dCAP exam costs $300.
3. Support Services. Developers and customers often want a "safety net" if they get stuck or in trouble. In this case, they can look for help from the Asterisk user community or Digium direct.
If you want Digium support that includes bug fixes + technical support, you pay an annual flat fee based on the number of Asterisk servers deployed. Fees can range from as little as $595/yr for one server with 12x5 support and up to $7,995/yr for up to 10 servers with 24x7 coverage. Discounts apply for multi-year contracts. Digium support is available for any Asterisk application (IP PBX, voice mail, ACD, or IVR system). For support subscription service offers and pricing, see this website.
4. Commercial software licensing from software developers who "create" their own proprietary products using Asterisk.
5. Value-added Asterisk products such as AsteriskNOW and Switchvox.
6. OEM licensing for their Asterisk Business Edition (ABE) system
Interestingly, Digium does NOT sell/distribute SIP phones. Customers can source these endpoints through their partner companies such as Polycom, Aastra, or Grandstream.
Asterisk interface cards, support, or value-added products are sold directly by Digium or through their distributors/authorized resellers. To minimize channel conflict, partners can offer discounts below Digium's direct prices. So if you want product or support direct from Digium, you'll pay a premium for it. Digium will support hardware regardless of where it was purchased.
