Open Source and Virtual Deals

As usual, Matt Asay is spot-on with his analysis of Fonality's acquisition of Insightful Solutions, especially here:

With this Fonality + Insightful/SugarCRM solution, customers will benefit from a unified solution that connects employees with presence management, instant messaging, fixed and mobile calling, and provides a single 360-degree view of customers and business partners.

Given SugarCRM's technology role in this deal, I'm surprised that SugarCRM wasn't involved in the press release. However valuable Insightful's technical understanding of SugarCRM, it's still SugarCRM's code that sits at the heart of this acquisition.

Having said that, it's perhaps telling that open source enables a close relationship with SugarCRM...without a close relationship. Most of SugarCRM's code is open, thereby enabling Insightful to build expertise that would be difficult to achieve with a proprietary product.

In effect, deals can be "done" without asking permission or even telling the other partners involved. The latter nonetheless benefit from the enrichment of the ecosystem surrounding their products that new uses generate.