Why Open Source Flourishes in the Tier 3 Economies

CNet has an interesting blurb comparing Microsoft licensing cost as a relative cost to per capital income. In the end folks in Brazil pay 19x and homes 15x the relative costs of an American for the same software. Even doing a straight cash comparison the Brazilian pays a 20% uplift to buy the same software.

In line with Duarte’s observation, I’d also suggest another reason: A desire to keep Brazilian Reals in Brazil, rather than shipping dollars back to the United States. Part of this stems from Brazil’s healthy distaste for the United States, but part of it is also just a realization that it’s difficult to impossible to build a thriving software business on the foundation of someone else’s software [PDF].

As I recently argued in Moscow, open source enables economies to develop and flourish on their own terms, not Microsoft’s, Oracle’s, etc. Brazil should not be spending 20 percent of its business income on Microsoft. Doing so cripples its ability to invest at home.

Read the whole thing.