Some like it hot
Some like it hot
Continuing IDM's look at some of Australia's foremost open source solution providers, Stuart Finlayson talks to Henry Okraglik, director of open source software developer HotMagna, on the company's rapid ascent to prominence.
HotMagna's founder, Magnus Cameron commenced HotMagna in 2000, initially to provide advanced Java programming training for Sun Microsystems, Aspect Computing and IBM Australia.
Following the decline in the training market, HotMagna received a break that has done much to drive its growth in the last few years. It was retained by leading Australian logistics company Toll Holdings to design and implement its WebMethods EAI (enterprise application integration). Following this successful implementation, Toll asked HotMagna to carry out a series of other projects. As the number and complexity of these projects grew, so did HotMagna.
Henry Okraglik joined the company as a director in early 2004, since which time HotMagna's customer base and partnerships has expanded greatly.
"HotMagna has experienced rapid growth, and we find that we are constantly looking for good people. (Our) growth over the last 18 months in particular has exceeded expectations," admits Okraglik. "We have moved from a single customer to multiple customers, from a couple of people to many more (and counting) and have developed relatively mature processes and systems. We are now developing our own intellectual property and expect to release our own open source products in the near future."
On top of all that, Okraglik says those working for the company have reaped in abundance from their efforts two of the things that most people strive for in their working lives-enjoyment and personal satisfaction.
"This has all been a lot more fun and rewarding than we ever imagined. That is not to say that there are not stresses and strains, but these are greatly outweighed by the satisfaction we get from seeing our creations deliver savings and results for our customers."
Okraglik and the team at HotMagna believe that their work with open source and open standards software is part of the beginning of a significant change in the traditional view of software and the dynamics of the IT industry.
"The supremacy of complex proprietary systems that lock customers in to a relentless software and hardware upgrade cycle regardless of business need is under threat. Open source and open standards software places control back where it belongs-with Australian businesses," ventures Okraglik.
"The cost advantages of open source and open standards also calls into serious question the claimed economies of scale benefits touted by the outsourcing industry. Toll is a leader in recognising this and is enjoying both the cost and control benefits of insourcing using open source and open standards software," he adds.
Toll Holdings has been a HotMagna customer since August 2001. Over this period, HotMagna has developed a number of business critical solutions for Toll, including Toll Directory (LDAP), Toll Service (browser based helpdesk system), Toll Project Information System, and Toll Imaging System which is the largest of these systems.
As a result of developing and project managing the Toll Imaging System, HotMagna has developed expertise in designing and building innovative imaging systems using open source components and open standards (Java, J2EE). Such systems are free of licence fees, designed to meet the specific needs of customers, and are designed for flexibility and robustness.
HotMagna has also been involved in significant Radio Frequency Identification projects in Australia and Korea, open source multi-media projects for a major public institution, automated retail vending devices for a US based corporation and a variety of systems integration projects around Australia.
Open source-the corporate view
While corporate Australia is, by and large, taking a keener interest and exploring the possibilities of open source as a viable alternative to proprietary systems, there still remains elements of doubt in some sectors over the suitability of open source software for top tier companies, doubt which Okraglik argues is propagated by proprietary software vendors with much to lose from a widespread migration to open source platforms.
"The real problem is the lack of understanding by many Australian business executives of IT. This places far too much power in the hands of corporate technologists who are then well placed to argue in favour of a particular technology and to justify it without explaining the options and benefits in terms of business outcomes. Too often business executives accept the views of their technologists without sufficient challenge.
"In most corporations these technologists have been educated and owe their livelihoods to a suite of proprietary technologies and solutions that are in place in their companies. This situation presents a significant barrier to enabling the businesses they work for to benefit from open source and open standards software.
"Of course, the purveyors of proprietary software (mostly US multinationals) also have a keen vested interest in maintaining the status quo and profit margins and consequently spend sizable sums spreading fear, doubt and uncertainty about open source and open standards software."
There are some exceptions to the rule among the leading IT vendors, as Okgraglik explains.
"Interestingly, companies such as Sun Microsystems, Novell and IBM have to a greater or lesser extent gone down the open source open standards path and now offer support and services around a number of products, such as various Linux distributions (e.g. Redhat, Suse), office productivity suites (e.g. OpenOffice and StarOffice, both from Sun Microsystems) and an impressive range of applications, including ERPs and content management systems.
"Australian businesses should retain a focus on ensuring that IT provides solutions to business problems. From a business perspective, the IT solution should be judged on its ability to deliver cost effective results. In this respect, software should not be treated any differently to any other business decision."
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