The Restaurant at the End of the Universe

Matt Asay has an excellent riposte to a singularly wrong-headed post entitled "Open source won't doom traditional enterprise software". As he rightly says, the real question is not the one the above piece thinks to deal with - "Is Enterprise Software Doomed?" - but

"What will be the primary bases for competition once everything is more (or less) open source?"

I believe the answers are also an explanation of why open source does doom traditional enterprise software, because the key differentiators will be things like innovation and serving the customer. Whatever lip-service traditional software companies pay to these ideas, the closed nature of their code, and the fact that customers are locked into their products means that they simply don't deliver either in the way that open source companies will do once they become the norm.