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Displaying posts with tag: Business models (reset)

451 CAOS Links 2009.06.09
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Vyatta raises series C funding. Greenplum launches data cloud initiative. Fedora 11. And more.

Follow 451 CAOS Links live @caostheory

# Vyatta raised $10m in series C round, led by Citrix.

# Carlo Daffara published Horses, carriages and cars an assessment of the shifting OSS business models, and a proposal of what is the optimal model.

# Greenplum delivered version 3.3 of its analytical database, launched its Enterprise Data Cloud initiative.

# Daniel Abadi asked whether betting on the MySQL mass market for data warehousing a good idea.

# Roberto Galoppini reported on open source adoption in Italian

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451 CAOS Links 2009.06.02
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Cloudera lands funding. SourceForge acquires Ohloh. Novell reports Linux growth. And more.

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Cloudera shows signs of progress

GigaOM reported that Cloudera raised $6m Series B funding from Accel and Greylock and is now looking beyond web applications to wider enterprise adoption of Hadoop. Cloudera also announced its first certification program for Hadoop.

Open source goes mainstream in the UK
There have been signs of change recently with regards to open source adoption in the UK, which has traditionally lagged behind the rest of Europe and the US. CBR Magazine provided an analysis of open source in the UK




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Comments on "Hacking Business Models" by Monty and Zak
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As mentioned previously, Monty Widenius is starting his new company based on some interesting premises. With Zak Greant they have co-authored a pamflet where they outline a blueprint for Open Source companies. In many ways this could be considered the "Dogme 95" of Open Source businesses:-)

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A classification of open source business strategies
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How does IBM’s open source strategy compare to Sun’s? Or Microsoft’s? What’s the difference between MySQL’s strategy and JasperSoft’s? Are some strategies better suited to engaging with organic open source communities, rather than inorganic? What on earth is the Open Core model?

These are some the questions we hoped to try and address with our Open Source is Not a Business Model report, published in October last year. As I mentioned yesterday, however, without an agreed set of definitions and a common vocabulary it is difficult for a broader understanding the implications of the various models to develop.

One of the ways we might be able to do

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Farväl
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It seems January and February were just completely taken up by customer engagements. I don't know if it is due to the recession or what, but we who are selling MySQL are just very busy right now. Towards the end of February I finally got on top of my life again, and on the bright side, I took almost a full week off from work, just to get even with all the overtime I accumulated.

This is old news now, but I still want to make a note of these historical events for my own blog too. If you're like yawn... then don't read it. OTOH, seems like I'm in good company commenting on this this week :-)

So some weeks ago we were hit by the surprising news that Mårten will leave Sun, just a few days after

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Define “open source vendor”
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I received an email from Tarus Balog, CEO of OpenNMS Group, on Friday, taking issue with the language I had used to describe two open source vendors (and I use that term deliberately).

Essentially Tarus objected to me using the term “open source vendor” to describe two companies with Open Core licensing strategies. His email raises a valid point about how we determine which companies are considered “open source vendors” and I wanted to use the opportunity to outline the rules I use to make that decision.

As a technical snafu at our end had prevented Tarus from leaving a comment on the blog I hope he won’t mind me using his words to explain the issue he raised.

He wrote:

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    Commercial open source community strategies in 2009 and beyond
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    I wrote last week about the commercial open source business strategies that I expect to dominate in 2009.

    The flipside to that is the commercial open source community strategy. You simply can’t have one without the other, and I expect community strategies will be a hot topic in 2009 and beyond.

    Savio Rodrigues wrote recently that “By the end of 2008, virtually every successful open source vendor has a fairly tightly controlled development process and this hasn’t hurt their revenue growth.”

    Based on my prediction that proprietary licensing strategies will be increasingly important in the next two years I am inclined to agree with him.

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    Commercial open source business strategies in 2009 and beyond
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    The future of commercial open source software lies in commercial licensing strategies, but which are the strategies that are more likely to deliver the results vendors are looking for?

    Much of the open source blog chatter over the Christmas period was related to open source business models/strategies, largely triggered by a post written by Dave Rosenberg in which he declared that commercial licensing, and specifically open core licensing will be all the rage in 2009:

      “Typically we now see an “open core” freely available with “exclusive” or proprietary features only available when you pay. If you are trying to build a commercial business on top of an open

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    Balancing community and enterprise needs
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    When Monty Widenius published his criticisms of MySQL 5.1 recently a lot of the coverage that followed focused on his belief that the product had been made generally available too early and has too many serious bugs.

    A solution to this problem would have been told hold 5.1 back even longer for more testing or, better still, not to have announced it as a release candidate so early. However, reading Monty’s post in full indicates that this would be a matter of treating the symptoms rather than finding a cure.

    He also wrote: “the MySQL current development model doesn’t in practice allow the MySQL community to participate in the development of the MySQL server” and “I think it’s time to seriously review how the MySQL server is being developed and

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    Christensen’s law in the context of open source business models
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    I wrote yesterday that Christensen’s law of Conservation of Attractive Profits could be used to explain why open source vendors are increasingly turning to hybrid development and licensing strategies to generate revenue from open source.

    Before I could think about doing so Arjen Lentz wrote a comment that did a lot of the explaining for me.

    To recap, “The Law of Conservation of Attractive Profits”, articulated by Clayton Christensen in his book The Innovator’s Solution, states:

      “When attractive profits disappear at one stage in the value chain because a product becomes modular and

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    What did I miss?
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    (Or “the return of 451 CAOS Links“)

    Having been a bit busy for the last three weeks I have a bit of catching up to do on the latest open source software news. Here’s the headlines that caught my eye.

    MySQL co-founder resigns from Sun
    No, not that one. David Axmark resigned stating “I HATE all the rules that I need to follow, and I also HATE breaking them. It would be far better for me to “retire” from employment and work with MySQL and Sun on a less formal basis.” If I may paraphrase Oscar Wilde, to lose one co-founder may be regarded as

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    Andrew Lampitt defines Open-Core Licensing
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    JasperSoft’s business development director Andrew Lampitt has kicked off his new blog with an interesting post related to business models used by open source-related vendors.

    In it he attempts to define the approach utilized by the likes of JasperSoft and SugarCRM, which offer open source products with core functionality, as well as commercial extensions. The approach is a twist on the dual licensing approach made famous by MySQL* where the vendor, as copyright holder, makes the code available under both the GNU GPL and a commercial license for customers that would rather avoid the GPL.

    The approach taken by JasperSoft et al is not to segment by user base but by features. As Andrew explains, “the commercial license is a super-set of the open source product, i.e., it offers

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    Open source is dead, long live open source
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    A couple of articles have been published recently that point to a growing realisation/admission about the role that open source will play in the future of enterprise software.

    In “The Commercial Bear Hug of Open Source” Dan Woods details the various methods by which open source has become increasingly commercial in recent years, while in “The Microsoft-Novell Deal and Trust in Princes” Bruce Byfield discusses the relationship between business and open source.

    Neither article is perfect. Woods, in particular, appears to paint open source in the role of the glorious failure - failing to surpass traditional licensing models and being

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    Getting Rich Fast ?
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    Lukas Kahwe Smith has an awesome post titled "Open Source is not making enough rich people richer" .
    Indeed, there is much talk that the VC's , the Investors and different others aren't seeing the big money fast enough, according to them that is.
    Does that mean that the open source industry is going bad ? Does that mean you can't make a living when working in the Open Source industry ?

    Absolutely not, as he points out there are uncountable people gaining a good living with Open Source, developers working on the different projects as their day job, system administrators managing open source platforms. We are helping out customers to implement Open Source and Free Software. And there are numerous other Drupal, Mysql, Xen, shops out there. Some have their own open source products and create a



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    Asking the right questions of open source
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    A classic Morecambe and Wise comedy sketch from the 1970s sees Andre Previn criticizing Eric for playing all the wrong notes while attempting the Greig Piano Concerto. Morecambe responds that he is in fact “playing all the right notes. But not necessarily in the right order.”

    I was reminded of the sketch this morning while reading BusinessWeek’s article on the potential perils facing open source vendors today. It seems to ask all the right questions, but not necessarily in the right way.

    The report suggests that while industry giants such as IBM, HP, Oracle and Intel stand to benefit from open source software, investor impatience

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    Sometimes a developer community isn’t the answer
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    I was in San Francisco at the tail-end of last week and was fortunate to have some time to meet up with Josh Berkus, a member of the PostgreSQL core team and, until recently, a Sun employee.

    Our conversation covered a lot of ground, including his reasons for leaving Sun (he didn’t go into detail but suffice to say he’s working a business idea), the future of the database market (more choice, more horizontal scaling, more use of specialist databases), the future of PostgreSQL (as a development platform), the level or authorization afforded to the Drizzle project, and the future of Sun.

    I won’t go into the latter now, but the

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    Could Google be stymied by a lack of openness?
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    It seems almost churlish to wonder whether Google could be even more successful than it already is with a different strategy, but the company’s approach to open source and open development has come into focus in recent weeks.

    On last week’s podcast we discussed whether the company should see the AGPL as more of an opportunity than a threat following Jay’s post about the company releasing more code under open source licenses.

    Nik Cubrilovic over at TechCrunch, meanwhile, has written an interesting

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    The Open Sourcing of Symbian by Nokia
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    I was sitting in a train in the middle of rainy Ireland when I received a mail that Nokia has bought Symbian and is releasing it as Open Source. I didn't believe a word of it. But the web was full of news about it, so it was true. This is an amazing turn of events that I didn't anticipate at all. (You may or may not know that in my previous job I was heavily involved with Symbian programming. Ironically, one reason I left just 6 months ago is that I wanted to work in an Open Source environment :-)

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    The vocabulary of open source development models
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    James Dixon has given the thumbs-up to my stretching his Bee Keeper analogy to explain open source development models (which is nice) and in doing so has suggested a new term to help quickly explain the difference between vendor- and community- dominated development projects.

    The debate about the difference between the two approaches, and the language used to describe them, has been simmering for some time. For some background on it, and an explanation about why it matters, see Ted Ts’o’s

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    Applying the Bee Keeper model beyond captive open source projects
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    I?ve been reading The Bee Keeper (also here in PDF), an explanation of the relationship between professional open source software (POSS) vendors and their communities, written by Pentaho?s CTO James Dixon. It is a very elegant explanation of the development/business model employed by the POSS vendors such as MySQL, Pentaho, JBoss and Alfresco.

    James uses the analogy of the Bee Keeper to explain the model. It?s worth reading the paper in its entirety to understand just how appropriate this is but to put it very simply: the vendor is the bee keeper; the community is the bees; the open source project is the honey; and

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    How open is your open source vendor?
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    There was some interesting discussion following my post last week asking whether there is a growing rift between commercial open source software vendors and some aspects of the open source user community.

    Amongst the comments, Chris Marino of SnapLogic suggested that some of the tension might be eased by open source software vendors being more upfront about their intentions via the publication of social contracts. Examples include the Debian Social Contract and also Funambol’s Open Source Project Social Contract.

    As Chris noted,

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    Trouble in paradise?
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    Maybe it’s a coincidence but this week has seen evidence of tension between commercial open source vendors and elements of the open source user community. Matt Asay stirred up something of a hornet’s nest with his post questioning how open source vendors can find ways of encouraging users to contribute either code of cash in return for free software.

    The question itself might be innocuous but Matt’s use of the term “free-riders” prompted a couple of angry responses. Storm in a tea-cup stuff really.

    Meanwhile, in a unrelated

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    The MySQL model
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    (This blog entry was written and co-posted together with my friend and the CEO of Warp Networks and EBox Platform, Ignacio Correas. Copyright notice: Please note that pictures embedded in the story by Ignacio are certainly not Creative Commons licensed anything.)

    Ignacio: I have always considered MySQL (http://www.mysql.com/) as the best model for open source companies. Their approach to the market, the execution of different business models, their relation with the community or the way their work internally as a virtual organization have shown an innovative and successful example of how an IT company in the 21st century can be managed.

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    MySQL licensing redux
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    After all the fuss it appears that MySQL will be remaining open source after all. As Kaj Arno and Monty Widenius report, Marten Mickos announced at CommunityOne that the MySQL Server will stay open source, as well as the forthcoming encryption and compression backup features, which MySQL had considered making available only to paying customers.

    “The change comes from MySQL now being part of Sun Microsystems. Our initial plans

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    Sun - MySQL Tour comes to Helsinki Open Tuesday on May 6th
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    I'm hosting a MySQL Tour event in Helsinki, probably this is the last stop on the tour so it will end in the same city where MySQL got started. If you are nearby, please pop in!

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    MySQL Tour visits Open Tuesday in Helsinki May 6th

    This winter we haven't had as many Open Tuesday meetings as we had last year,
    but we will finish off the season with meeting Sun and MySQL on May 6th at
    18:00, in the usual place Club Ahjo, Bulevardi 4, Helsinki.

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    Scale to everywhere
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    MySQL being acquired by Sun has of course put a lot of focus on the success of MySQL so far, but it is also interesting to think what success will mean as part of Sun too. In this light a recent interview of MÃ¥rten by Business Review Online about the acquisition was inspiring. (As words from MÃ¥rten usually are!)

    "It's a marathon, not a sprint," he said. "If a 15-year-old downloads MySQL now, when do we get our money? In about 15 years' time when he is head of IT at a company and he loves MySQL. But in many cases it will happen sooner than that."

    "In open source we say fail fast, scale fast. Many web 2.0 ideas will fail, but when Google or Facebook [two of MySQL's biggest customers] get it right they suddenly need to scale like crazy," Mickos said. "Open source is the only

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    Sun deal closed
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    I was finishing up a business trip in Madrid yesterday and heading back to the airport while making sporadic calls into our conference calls that were going on. The Sun acquisition is now closed and we are part of the worlds biggest Open Source company. Mårten Mickos is heading the Sun Database Technology Group the Sun Database Group, which in addition to MySQL includes some happy Norwegians (they are always happy) of the Sun owned Clustra Systems, known as the Database Technology Group, who also sing drinking songs in their own language :-) They also work on the Apache Derby project. However, there was no mention of any Postgres developers falling under Mårten (caveat: I wasn't able to hear everything). I think it might be best so :-)

    Here is the funny video of today, it is a documentary of the evolution of the species known as Sun Sales Engineers (I'm a Sales Engineer):

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    Previous 30 Newer Entries Showing entries 31 to 57

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