Dave reports that IDC’s latest report “Worldwide Standalone Open Source Software 2008–2012 Forecast: A Preliminary View” estimates that the standalone OSS market will grow from $1.73B in 2007 to $4.83B in 2012. That’s a 23% annual growth rate to 2012 vs. 7.7% annual growth for the overall software market.

Interesting to note that $4.8B represents 1.3% of the overall software market. The previous version of the IDC data suggested that standalone OSS spending would come in at 1.8% of the total 2011 market spending. (Don’t try to reconcile the two figures as forecasting is difficult and usually +/- a wide margin).

But as the report’s author, IDC’s Matt Lawton highlights:

“However, we need to also provide some context. Standalone open source software is an important but small segment of open source software. Large vendors are realizing significant revenues indirectly from their activities with and support of embedded and complementary open source software. In addition, unpaid open source software adoption is significant but not included in our revenue estimates.”

Matt Lawton is a very bright guy and “gets it” when open source is the topic of discussion.

Good to see that the data continues to support the idea of OSS becoming an aspect of the software market, rather than “the beginning of the end” as some had predicted.