Why There Will Never Be Another Red Hat: The Economics of Open Source

Peter Levine

Open source software powers the world’s technology. In the past decade, there has been an inexorable adoption of open source in most aspects of computing. Without open source, Facebook, Google, Amazon, and nearly every other modern technology company would not exist.

Open Sourced Software Differentiates Vaadin from closed source dinosaurs


But it is not, however, how things work in the world of open source. Open source software has been brought to wider public attention by brands like Linux and Firefox, both of which who have thrived to gigantic proportions due to their open nature.

Trending Sources

Vaadin Raises $6 Million For Open Source Development


Finnish Industry Investment and Swedish eEquity have invested $6 million in Vaadin , an open source company building components and tools for web application developers.

Open Source Business Model


skip to main | skip to sidebar SoCal CTO Monday, March 5, 2007 Open Source Business Model A recent spate of posts on the challenges of running an open source business is interesting ( Tosh , Siemens , Downes , Tosh 2 ) and quite heated as one of the founders of elgg - a social networking platform aimed at the educational space - Dave Tosh laments - Elgg is the most popular white label social networking platform in the world powering over 2000 networks.

How A 17-Year-Old In India Bootstrapped To $7M In Revenue


Today, it has 20,000 customers and 450,000 users in 118 countries, powers more than a billion charts per month and clocks $7M in annual revenues. FusionCharts was commercially open source from day one. The following is a guest post written by Sanket Nadhani.

India 56

The Other Amazon Deal this week. Drupal founder attracts over $100 Million in 3 months.

Scalable Startup

is the for-profit company founded by Dries Buytaert, the inventor of Drupal, to support his open source project. When Open Source software projects are launched, the progenitors often start a for-profit sister company to garner some income from training, support and consulting. Because they are open source. Google has optimized this open source to freemium model in almost all of its products.

Startup Success Podcast, Open Source For-Profit Startups, One.

Software By Rob

Open Source, For-Profit Startups – “FairSoftware is the place to start and grow your online business. We help you team with others, track revenue and share it openly and fairly.

Open Source - What is the Model?

Will Price

I flew to Portland really looking forward to learning more about open source business model and execution best practices. OSCON’s Executive Briefing included panelists from Red Hat , MySQL , Digium , and other leading open source companies. to open source and failed to satisfy the widespread interest in diving into meatier issues.

Are Ad Blockers Hijacking Your Revenue?

Inc Startups

Did you know that an increasingly determined segment of your audience is blocking your ability to earn revenue? For example, with more than 50 million users, open-source Adblock Plus is the most popular browser extension. (It

I-Corps @ NIH – Pivoting the Curriculum

Steve Blank

Next we teach Distribution Channels (how are you going to sell the product) and Customer Relationships (how do you Get/Keep/Grow customers) and Revenue Streams (what’s the Revenue Model strategy and pricing tactics.) We’ve pivoted our Lean LaunchPad / I-Corps curriculum.

Burnham's Beat: Indian Outsourcers: Open Source's Best Friend or.

Burnham's Beat

Indian Outsourcers: Open Sources Best Friend or Worst Enemy. In the past couple of weeks I have had several conversations in which Indian IT outsourcing shops have come up in the context of Open Source. Several Open Source firms have mentioned that Indian outsourcing shops are becoming very good customers and in some ways are really starting to drive enterprise IT adoption of Open Source. A New Chapter In Open Source?


The Dentist Office Software Story

A VC : Venture Capital and Technology

The company, Dentasoft, grows quickly into a $100mm annual revenue business, goes public, and trades up to a billion dollar valuation. Dentasoft misses its quarter, citing competitive pressures, churn, and declining revenues. Around this time, an open source community crops up to build an open source version of dental office software. This open source project is called DentOps.

When Customers Make You Smarter

Steve Blank

But the big payoff came when their discussions with medical device customers revealed an entirely new way to think about pricing —potentially tripling their revenue. At Linden Lab, delivered the open-sourced Second Life Viewer 2.0

More "Open Source" Legal Tools


Open source is the wrong term though; instead is probably better to say automate since LegalZoom and others are doing the same thing but commercially.

Software Eats Software Development

Peter Levine

With only a handful of people in sales and marketing, the four grew the company to over 100 people, while growing revenue at nearly 300% annually—and profitably nearly the entire way. Source Code Management (SCM) is the second most fundamental tool for a programmer after compiler and development tools. It stores, versions and branches source code being developed by teams of programmers. We just invested $100M in GitHub.

Why Venture Capital is So Much More Compelling Now

Both Sides of the Table

The costs to start are much lower than ever (90% reduction in infrastructure costs to start a company through open source & web services) and large companies being created in many geographies. Time to massive revenue is the most compressed in history due to scale and Deflationary Economics. It’s not hard to find people willing to write the narrative that “venture capital is not an asset class” or “venture capital has performed terribly.”

Ad serving is officially a commodity


Well, this has probably already been the case for years, but in the past two weeks: * Openads , the "free, open source ad server," announced a $5mm funding , in part to become an open advertising platform. are licensed open source under the GPL. Targeting, analytics, networks and exchanges more clearly result in revenues. skip to main | skip to sidebar. aweissman.com. Maximizing the serendipity around you. Jun 21, 2007.

Microsoft and the future of software pricing–when free isn’t quite free

The Equity Kicker

In theory software delivered over or downloaded from the web has a marginal cost that is very close to $0 and a lot of people believe that software companies of the future will derive their revenues more from support, services and hosting than licenses. Business models Open Source

What’s A Startup? First Principles.

Steve Blank

A Lean Startup is Eric Ries’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. When revenue, users, traffic, etc., Success consists of going from failure to failure without loss of enthusiasm.

10 Ways To Win With Multiple Concurrent Businesses

Startup Professionals Musings

Revenue from one startup can be “invested” in another, and assets like buildings and computers can be shared. With open-source tools and public APIs, every product is no longer owned by a given company.

Mulesource Raises Series B

Will Price

Mulesource , the leading open source integration framework, announced today the successful close of a $12.5m Enterprise risk controls demand that software that touches critical to revenue/transaction systems be supported. Tags: open source Series B mulesource

How to Raise Micro-Capital Online

Market by Numbers

In this case, if you pledge $10, you get a CD (with the source code), a note from the Diaspora team and a bunch of stickers. Now, take a look at the chart below, and see how that translated into revenue.

You Need a Networking Profile

Force of Good: a blog by Lance Weatherby

Yes I know a number of folks in the tech community, the vast vast majority who work for companies with less then $1 million in revenue, more often than not with zero revenue. Because they have no revenue they do not hire people (with the exception of the well funded). Tags: Networking Open Source It's funny the way the Internet works sometimes. Last Friday I uploaded a networking profile to Scrid in prep of this article.

New Rules for the New Internet Bubble

Steve Blank

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. With Netscape’s IPO , there was suddenly a public market for companies with limited revenue and no profit. Carpe Diem.

How Linux Got To China And The Nordic Open Source Miracle


In other words their infrastructure is based on Linux, Apache, MySQL and PHP – a selection of open source software programs. <!--more-->. Open source, in other words, is not an end in itself.


3 Steps to Turbocharge Your Startup

Inc Startups

In response, the company, an open source software project management dashboard maker, hired Lou Shipley as CEO. Open Source Software Logistics is a method to help track, manage, and profit from a company''s OSS development projects.

New Early Stage Financing Options for Entrepreneurs


Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream.

The internet shrinks industries – auto is next up

The Equity Kicker

Amazon is doing that to much of retail, MySQL and other open source companies have done it to large swathes of the software industries, Craigslist did it the classifieds industry, and I could go on. This morning I was talking with an investor in our fund about how when the internet disrupts industries it often makes them smaller and, from the perspective of incumbents, less attractive.

Using Evernote to manage your Startup

47 Hats

Whether it’s the latest set of Heroku commands or alternative revenue models for your startup, you need one place to store all the vital bits, ideas, and decisions. I recommend Evernote. While there are lots of alternatives (Wikis, Circus Ponies Notebook, plain text files, etc), Evernote gives you a set of nice features (versioning, formatting, device ubiquity, robust search) that no other single app has.

Wiki 45

Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Steve Blank

The cloud , open-source development tools and web 2.0 Today it’s dominated by capital efficient software, web and mobile startups whereas 10 years ago it was dominated by semiconductor and hardware startups that consumed huge amounts of capital before their first dollar in revenue.

Investigating a business idea? Go analogue hunting

The Equity Kicker

Your product / service can be completely different, but you want to know that people are willing to open their wallets to solve this problem. Although there is an obvious question about the revenue potential for a one-time-use product.).

Four Trends In Artificial Intelligence That Affect Enterprises


Contributing to these trends are less expensive and more powerful hardware, and open source end-to-end connected data platforms that maximize the value of data-in-motion and securely store, manage and perform complex processing of data-at-rest.

Asia 30

8 Ways The Maker Movement Turns Ideas Into Businesses

Startup Professionals Musings

This new culture builds on hobbyist technologies, extends the open-source inventory of hardware and software, and bridges the gap into real business solutions with other advantages, as follows: Shortens the time and cost from idea to prototype.

New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream.

Tooling up for writing a book in 2018

47 Hats

Having written three books in Microsoft Word because of publisher’s tooling, I consider using Word when it’s open sourced or Hell freezes over, whichever comes first.

Little Data – Insurance, finance and digital footprints

Start Up Blog

Their biggest competitors in 5 years is more likely to come from outside their industry, as is of course any new revenue opportunities. The game is open, and future is bright for those who embrace the change. General Thesis: Cheap technology is changing everything.

How A Dorm Room Side Project Became The Web's Hottest Operating System

Inc Startups

Boy, was he wrong As a grad student in computer science at the University of Antwerp in the early 2000s, Dries Buytaert began fiddling with what he thought was a fun side project: an open-source software platform that could support all kinds of websites.

ESADE Business School Commencement Speech

Steve Blank

Companies horde cash and squeeze the most revenue and margin from the money they use. Other smart companies are learning how to use Open Innovation pioneered by Henry Chesbrough who teaches here at EDADE.

IRR 149

Burnham's Beat: Is It Just Me or is GAAP Completely Broken?

Burnham's Beat

Indian Outsourcers: Open Sources Best Friend or Worst Enemy » 04/24/2007. Deferred Revenues: When a company receives payment for services they have yet to perform they end up having to defer revenue recognition on large portion of that payment. Under the new rules, any deferred revenues that are acquired typically flow through the income statement at cost. That is the revenue recognized is equal to the cost of goods sold. Open Source.

The Cost Equation for a Startup is Better Than Ever

Startup Professionals Musings

Now, with open source software components, and low-cost development tools, the same job can be done by one good hacker for a few thousand dollars. Founders now routinely use their home to operate their startup until they are well into the revenue phase.

Cost 42