Open Data, Creative Destruction and Money

Nearly three years ago, I wrote an article exploring why at that time there were no billion-dollar companies (since then, Red Hat has finally broken through this barrier). Here's the key point:

On Open Enterprise blog.

Another Billion-Dollar Open Source Company: Instagram

Earlier this week I wrote about the first company based on open source to reach a turnover of one billion dollars. But of course, there are lots of multi-billion dollar turnover companies that are based on open source - Google, Facebook, Twitter etc. - it's just that they don't make money off it directly.

On Open Enterprise blog.

Red Hat's Billion Dollars And the Power of Free

Recently, there was some justified excitement that Red Hat had finally done it, and turned in annual sales of over $1 billion. A couple of years ago, I wrote a post here on Computerworld UK wondering why there were no companies based around open source that had managed to achieve such billion-dollar turnovers, and suggested that the key reason was one put forward by Red Hat's CEO, Jim Whitehurst:

On Open Enterprise blog.

Who Should Buy SuSE Linux?

In the early days of companies based around open source, the questions were: would they make any money? Would they survive? Once it was clear that they not only could survive, but also make money quite nicely, the next question became: what happens when they become successful enough to get bought by traditional software companies?

On Open Enterprise blog.

If Oracle Bought Every Open Source Company...

Recently, there was an interesting rumour circulating that Oracle had a war chest of some $70 billion, and was going on an acquisition spree. Despite the huge figure, it had a certain plausibility, because Oracle is a highly successful company with deep pockets and an aggressive management. The rumour was soon denied, but it got me wondering: supposing Oracle decided to spend, if not $70 billion, say $10 billion in an efficient way: how might it do that? And it occurred to me that one rather dramatic use of that money would be to buy up the leading open source companies – all of them.

On Open Enterprise blog.

Jim Whitehurst is CEO and Chief Plumber at Red Hat

Jim Whitehurst, president and CEO of Red Hat, the oldest and by far the most successful company whose business is based purely around open source, makes no bones about it: “Selling free software is hard,” he says. In fact, he goes further: “Open source is not a business model; it's a way to develop software.”

On CIO.co.uk.

Let's Make "The Open University" Truly Open

Interesting:

The Open University (OU) is now a certified Microsoft IT Academy adding to its fast-growing suite of IT vendor certifications.

The first course in the OU's Microsoft IT Academy programme TM128 Microsoft server technologies launches in October 2010. The course, purpose-designed by the OU, covers both the fundamentals of computer networks and the specifics of how Windows server technologies can be used practically. Registration is now open for the 30-credit Level 1 module.

Microsoft server technologies will form part of the requirement for both Microsoft Certified System Engineer (MCSE) and Microsoft Certified System Administrator (MCSA) programmes, and forms part of the pathway to MCITP (Microsoft Certified IT Professional) certification. The course can also be counted towards an Open University modular degree.

Naturally, offering such courses about closed-source software is an important part of providing a wide range information and training. And I'm sure there will be similarly courses and qualifications for open source programs.

After all, free software not only already totally dominates areas like supercomputers, the Internet and embedded systems, but is also rapidly gaining market share in key sectors like mobile, so it would obviously make sense to offer plenty of opportunities for students to study and work with the operating system of the future, as well as that of the past.

That's true for all academic establishments offering courses in computing, but in the case of the Open University, even-handedness assumes a particular importance because of the context:

The Open University has appointed a Microsoft boss to be its fifth vice-chancellor.

Martin Bean is currently general manager of product management, marketing and business development for Microsoft's worldwide education products group.

I look forward to hearing about all the exciting new courses and certifications - Red Hat and Ubuntu, maybe? (Via @deburca.)

Follow me @glynmoody on Twitter or identi.ca.

Why No Billion-Dollar Open Source Companies?

Last week, I met up with Jim Whitehurst, Red Hat's CEO. He gave a very fluent presentation to a group of journalists that ran through Red Hat's business model, and explained why – unsurprisingly – he was optimistic about his company's future growth.

On Open Enterprise blog.

Why Making Money from Free Software Matters

Free software began as a political movement: its central aim was – and remains – the propagation of freedom. Later, it became a development methodology too, largely at the hands of Linus, whose geographical isolation in Finland forced him to develop ways of using the Internet to coordinate a new kind of massive, but decentralised, global collaboration. Later still, free software also became a way of making serious money – something that Stallman has repeatedly said he is quite happy with, contrary to much FUD claiming otherwise.

On The H Open.

Open Source in the Enterprise: Safely Boring

Yesterday I popped into part of the London Open Source Forum. This was a laudable effort organised by Red Hat in conjunction with some of its partners to corrupt young and innocent minds – well, senior managers, at least – and convince them about the immanent wonderfulness of open source. To that end, they wheeled out some of the big names in the enterprise free software world like Matt Asay, Simon Phipps and Jan Wildeboer....

On Open Enterprise blog.

Red Hat Makes its Position Patent

Six months ago I noted that the European Patent Office had embarked upon a fairly abstruse process....

On Open Enterprise blog.

Channelling the Power of Open Source

This blog tends to concentrate on two broad aspects of open source: the issues that affect enterprise users, and the companies based around creating free software. But this misses out a crucial player, that of the “channel”, also known by the equally unhelpful name of “value-added resellers”, or VARs....

On Open Enterprise blog.

Follow me on Twitter @glynmoody

A Question Red Hat Must Answer

With apologies for returning to the theme of patents, I'd like to direct your attention to a long and interesting piece that has appeared on the Digital Majority site asking a very important question: “Did Red Hat lobby for, or against software patents in Europe?”

On Open Enterprise blog.

Follow me on Twitter @glynmoody

Ubuntu Edges Further into the Data Centre

Everybody knows that Ubuntu is the most popular GNU/Linux distro for the desktop. Everybody knows that it has achieved that distinction be concentrating on that sector, unlike Red Hat, say, which is aiming at the corporate market. Everybody knows these things, and everybody is wrong. Because, very cunningly, Ubuntu is trying a tricky strategy: to insinuate itself into the highly-profitable corporate sector without losing its cachet as the user-friendly distro for newbies....

On Open Enterprise blog.

Fedora as Basis of Russia's Operating System?

An interesting conversation took place recently:

Несколько дней назад в Минкомсвязи России прошла встреча с участием главы Минкомсвязи РФ И.О.Щёголева и директора европейского подразделения, вице-президента корпорации Red Hat Вернера Кноблиха. В ходе встречи было объявлено, что развитие свободного программного обеспечения в России – одно из главных направлений работы Министерства.

[Via Google Translate: A few days ago in Minkomsvyazi Russia held a meeting with the head of the Russian Federation Minkomsvyazi IO Schegolev and Director of the European division, vice-president of the corporation Red Hat Werner Knobliha.During the meeting it was announced that the development of free software in Russia - one of the main directions of the Ministry.]

It's good news that Red Hat has had the opportunity to talk to senior government officials about open source - in this case, at the ministry of communications - but what's much more important are the specifics mentioned in the story:

На встрече обсуждался широкий круг вопросов, касающихся развития рынка свободного программного обеспечения (СПО) и его практического применения в действующих системах. Отдельно отмечена важность создания российского сообщества разработчиков Russian Fedora, которое может послужить одним из шагов навстречу создания отечественной операционной системы. Министр отметил: «Мы считаем, что интеллектуальный потенциал российских специалистов таков, что в России можно вести не только сборку, но и полноценную разработку кода».

[The meeting discussed a wide range of issues related to market development of free software (ACT) and its practical applications in existing systems. Separately, the importance of establishing a Russian community of developers Russian Fedora, which could serve as a step toward the creation of the domestic operating system. The Minister noted: «We believe that the intellectual potential of Russian experts is that Russia can not only build, but a full-fledged development of the code».]

This seems to be a reference to the call for an independent Russian operating system, based on GNU/Linux, that I wrote about last month. The suggestion in the above post is that a step towards such an operating system would be establishing a Russian Fedora project, which would then allow Russian coders to contribute on a much larger scale than hitherto.

The fact that these talks have taken place is an indication that the idea of a national operating system for Russia - dismissed by some as fanciful - is under serious consideration. Let's hope Red Hat responded positively to the overtures.

(NB: For fast updates on this and similar stories, you can also follow me on Twitter at glynmoody.)

Do Top Hackers Have Too Much Money?

The announcement that one of MySQL's founders, Monty Widenius, was leaving Sun, was generally regarded as a pity, though no huge surprise, given the rumours that had been swirling since last year. But its impact was redoubled following the even more astonishing news that MySQL's boss, Marten Mickos, was also moving on; together, they inevitably sent shock-waves through the open source world. Most analysis has centred on the state of Sun, and whether these two high-profile departures mean that the MySQL acquisition was a mistake, or has already failed. But here, I'd like to look at a bigger question that these moves pose: do top hackers (and their managers) have too much money?

On Linux Journal.

Wanted: the First GNU/Linux Distro for the Cloud

As this amazing chart shows, there are basically three great families of GNU/Linux distros: those based on Red Hat, Slackware and Debian. The last of these was created as a reaction to an even earlier distro, SLS, as Debian's creator Ian Murdock (the “Ian” in “Debian” - Deb is his wife) told me a few years ago....

On Open Enterprise blog.

Alan Cox and the End of an Era

In the beginning, free software was an activity conducted on the margins - using spare time on a university's computers, or the result of lonely bedroom hacking. One of the key moments in the evolution of free software was when hackers began to get jobs - often quite remunerative jobs - with one of the new open source companies that sprang up in the late 1990s. For more or less the first time, coders could make a good salary doing what they loved, and businesses could be successful paying them to write code that would be given away.

On Open Enterprise blog.

Novell's Faustian Pact

There is something rather curious about software companies operating in the open source world. Although they may be competitors in a particular sector, the open source licence they employ means that they are also partners: they can generally use the code of other companies if they wish. The stronger those companies become, the more code they produce, and the more code there is available to everyone – including their nominal rivals. This makes the commercial ecosystem that evolves around free software strangely collegiate: everyone has a vested interest in growing the code base, because it is a commons that all can and do draw on....

On Open Enterprise blog.

AMQP's Long Spoon

Here's Red Hat blowing the trumpet for the Advanced Message Queuing Protocol, or rather for its latest supporter....

On Open Enterprise blog.