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Commercial open source, the future state

In preparation for my upcoming OSBC session, "Open-Core Licensing: The New Business Model Standard for Commercial Software," I dug through some old presentations to try to figure out how monetization efforts have changed in commercial open-source companies.

Ultimately, revenue from open source boils down to understanding buyer types, as described by former MySQL CEO and current Sun Senior Vice President Marten Mickos starting all the way back in 2005.

Marten described the buyer market for open-source solutions as:

Those who spend time to save money Those who spend money to save time

Marten has also asserted that "in the past, differentiation was a compelling reason to buy but, if incorrectly implemented, it could also drive the compelling reason to abandon."

That statement leads into the topic of discussion around open-core licensing and the associated risk-versus-reward scenario as open-source vendors manage projects to balance revenue and community.

The big challenge for vendors trying to monetize open-source products is how to encourage payment for something (anything?) while not bastardizing the user base that is hooked on the free software. I've outlined below my latest attempt at explaining the commercial open-source evolution--or at least, an explanation of how several companies have matured their models to ensure both community and financial success.

Support + free code Support + commercial license Support + commercial license + indemnity + warranty Support + commercial license + indemnity + warranty + exclusive features

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Why Oracle didn't buy MySQL

Reading the excellent analysis of Arjen Lentz, founder of MySQL training company Open Query, of what the open-source database leader MySQL is (and isn't) makes me wish that Oracle would have discovered MySQL as a complement, rather than as a competitor, several years ago.

MySQL's is the database software of choice for the Web, period. Oracle's is the database software of choice for the enterprise, period. It's unclear, as Lentz points out, that this means one is better than the other--and why we need to keep talking about competition between them:

MySQL doesn't have to … Read more

Simplicity-money combo spells MySQL success

There are lots of reasons to love MySQL, the leading open-source database that Sun bought in 2008: it's inexpensive, perfect for Web applications (among other things), and boasts high performance.

According to Brian Aker, a principal engineer at Sun Microsystems, however, the real secret to MySQL's success is ease of use:

The thing that MySQL brought to the table when it came out was the ease of use and the ease of installation. MySQL came out in an era where comparable products were really complex and required a lot of knowledge to be able to use and install. … Read more

What makes open source CEOs different

I don't have any scientific proof of this, but it strikes me that open-source CEOs are different. Not just because some sport ponytails (Sun CEO Jonathan Schwartz), or some speak with a light Southern drawl (Red Hat CEO Jim Whitehurst), or even that some swear in Italian (Funambol CEO Fabrizio Capobianco).

No, what really makes them different, at least as compared to their enterprise software counterparts, is their cutting-edge adoption of technology.

In this they're no different (and probably a bit behind) the Web 2.0 crowd, but compared to an HP, IBM, or SAP CEO, the CEOs … Read more

Why doesn't Sun really respect Java?

There was a time when Java was the darling of the technology industry. It had everything going for it--technically advanced, relatively easy to use, and it held the magical promise of "write-once, run-anywhere."

But, over the last two years or so (seemingly ever since Sun changed it's stock ticker to JAVA), the language has become boring and moribund. Not that programming languages are such a thrill ride, but Java had a level of panache well beyond the norm.

Somehow Java has become really boring. People don't even argue about it anymore. Once thriving sites like TheServerSide don't have the excitement or vitriol that they did in the past. Based on some quick interviews I did, Java guys are all over the map as to why the excitement is gone, running the gamut from JSR bureaucracy, to the focus on things like JavaFX, to the changes in Java EE 6 that most developers didn't ask for and do nothing to support new paradigms like Web apps or cloud computing.

Sun has effectively lost the battle for the cloud to virtualization, which boggles the mind considering the enormous arsenal of servers, storage, and software that Sun has at its disposal to create a differentiated cloud offering for all of the enterprise Java shops. I remain of the opinion that Java should be the dominant platform for the cloud. … Read more

CNET News Daily Podcast: MySQL founder leaves Sun

In Friday's podcast, MySQL founder says goodbye to Sun, Google recruits a whole army of white-space soldiers, and Lenovo says it will focus more heavily on selling PCs in China. Also, what's Sega up to with its patent filings? And the Senate might cut funding for broadband while trying to slim down the stimulus package.

Listen now: Download today's podcast

Today's stories:

Marten Mickos to leave Sun in reorg

Google helps form 'white space' database coalition

Lenovo to refocus on Chinese market

Courts split over police searches of handhelds

Is Sega planning a return to the console market?Read more

Marten Mickos to leave Sun in reorg

Marten Mickos, former MySQL chief executive and current senior vice president of Sun Microsystems' database group, is transitioning out of the company in a planned reorganization.

I reached Mickos this morning for confirmation: he is definitely leaving. This move is not prompted by weakness in MySQL's business, which just closed an exceptional quarter, as he told me by phone.

"There is nothing in the MySQL business that is prompting me to leave," Mickos said. "Business is great. We just closed a multimillion-dollar deal recently that confirms much of the momentum we've made. We just closed … Read more

Monty Widenius officially leaves Sun's MySQL

It's official: Michael "Monty" Widenius has officially quit his job at Sun Microsystems, as noted on his blog, and will be starting his own company.

I reported in September that Widenius, primary author of the original MySQL database and one of MySQL's founders, had left, which proved to be almost true. He was leaving, but he didn't quite make it out the door.

As of Wednesday, he's gone.

The reason isn't any different from what prompted him to move toward the exit door in September, as he notes on his blog: Widenius feels … Read more

Q&A: Sun open-source officer Simon Phipps

As the chief open-source officer at Sun Microsystems, Simon Phipps spoke to ZDNet Australia about the MySQL acquisition and community engagement on OpenOffice.org and OpenSolaris.

Q: In the beginning of 2008, Sun spent $1 billion on the acquisition of MySQL. Given Sun's huge reduction in Australian revenue, and the global shedding of jobs, was this a prudent acquisition? Phipps: It's a bit soon to be making that sort of judgment. Asking that question now is a bit like asking a company to change its product strategy on the basis of the share price.

MySQL is a long-term … Read more

Open-source database market shows muscles

While Sun Microsystems' MySQL gets the limelight, with its 55 percent quarterly billings increase, other open-source database competitors like Ingres and Enterprise are also doing well.

Ingres on Tuesday reported a significant uptick in its 2008 revenue, climbing 32 percent to $68 million over $52 million in 2007. EnterpriseDB didn't provide revenue numbers, but it also recently reported a banner year, with greater than 50 percent growth in new customer accounts and "comparable bookings growth."

New Ingres customers in 2008 include Air Enterprises, Allied Express, Banca IFIS SpA, BBP Partners, CondeNast Publications, Connected Wedding, C&K … Read more