Linux in Business
Open-source software, once seen as the province of propeller heads and anticapitalist visionaries, is winning the respect of the most clear-eyed capitalists of all: the venture capital community.
In the last few years, venture funding for open-source companies has jumped from $72 million in 2002 to $262 million in 2005, according to Venture One. Meanwhile, the number of open-software start-ups funded in those years climbed from 11 in 2002 to 30 in 2005.
MontaVista Software, Inc., today announced it has secured $21 million in funding led by Siemens Venture Capital. Also participating were NEC, Alloy Ventures, US Venture Partners, Aplix and others.
The Linux operating system is the recipient of 75% of all vendor investment in open source software, according to a new report from the Harvard Business School, which also indicates that vendor support for open source is primarily motivated by boosting their proprietary offerings.
Open source vendors can't be run like their closed source counterparts. The programming talent, and the people behind that talent, aren't like other managers.
I thought of this when looking at a stray comment Marc Fleury of RedHat's JBOSS unit gave another publisher recently. They ran with it like sports reporters ran with Michael Vick giving fans the finger.
The past few weeks have been a lesson in olive tree gardening. Not literally, of course. Instead, I'm referring to the analogy between how one grafts olive trees and how one grafts employees into a company. The tie between the two hit me in my morning reading today....
SiCortex, a startup that makes Linux computer clusters, announced that it has closed a $21 million round of funding, led by Chevron Technology Ventures through its venture capital arm, CTTV Investments LLC. The funding will go toward expansion of sales and marketing efforts and continued product development.
Total revenue for the quarter was $99.7 million, an increase of 52% from the year-ago quarter and 19% from the prior quarter. Subscription revenue was $84.9 million, up 56% year-over-year and 19% sequentially. JBoss-related revenue of $7 million was at the top of management's previously provided guidance.
When I was in college, lower level CS course assignments were done in DOS PC's networked through Novell Netware. Once a student got to take higher level courses, he/she was given an account into one of the department's SunOS Unix servers. Most students from basic courses suffered from "Unix envy", the Sun boxes were perceived as being much more powerful than the humble PC's. As a I entered the workplace, I brought my college perception that Unix workstations are more powerful than PC's with me.