09.21.05

Open source software

Posted in Technology Ventures at 5:19 am by Ray Wu

In general, Open Source vendors have multiple types of revenue model:

  1. Hosted model: Software delivered as service that charged on a periodic basis (ie. monthly)
  2. Support model: Support, maintenance and upgrade type of service model
  3. Hardware model: hardware solution that encapsulates open source function and deliver as a complete out-of-the-box solution
  4. Consulting model: Free opensource, but charge for consulting
  5. Duel license model: free license for developer, but charge for advanced / commercial deployment
  6. Layering model: Use open source to commoditize the layer that is not critical or traditional best provided by competitor, and make money from associated solutions. ie Open Solaris

Of course, the real interesting one is the combination of all models :)

  • SugarCRM: open source CRM — VCs: Draper Fisher Jurvetson, Walden International
  • Scalix: Linux E-mail and Calendaring for the enterprise — VCs: Mayfield, NEA, MDV
  • Levanta (Linuxcare): provides software for Linux configuration management, provisioning, and software deployment across commodity hardware, blades, virtual machines, and even mainframes. — VCs: Morgenthaler Ventures, VSpring Capital, Walden International, Kleiner Perkins
  • XenSource: Open Source Xen hypervisor to support and develop the world’s best virtualization technology — VCs: Kleiner Perkins, Sevin Rosen, Accel
  • SourceFire: Security hardware based on opensource SNORT –VCs: Greylock, Sierra Ventures, NEA, Sequoia
  • Zend Technologies: PHP for enterprise — VCs: Azure Capital Partners, Index Ventures, Intel Capital, Platinum Venture Capital, Walden Israel Venture Capital
  • JBoss: Application server –VCs: Matrix
  • mySQL: Database –VCs: Benchmark, Index Ventures
  • SendMail: enterprise class e-mail infrastructure — VCs: Adobe ventures, Morgan Stanley, Novell, Intel
  • Jotspot: company built on Wiki foundation –VCs: Mayfield, Redpoint
  • Groundwork: opensource IT infrastructure management - VCs: Cannan, Mayfield
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2 Comments »

  1. Technovision » Office 2.0 said,

    August 25, 2006 at 5:33 am

    […] I am going to be a panelist for Office 2.0 conference coming up in San Francisco in Oct. I think the logistics is being worked out right now, but we have a good list of speakers lined up. What’s different between Office 2.0 and Web 2.0 is that Office 2.0 is SMB focused vs consumer. It is funny to see the full circle of centralized computing. When I first started my career, I was a programmer on MVS and VMS with those hunky mainframe machines with dumb terminals. Now, the dumb terminals are being replaced by thin clients, cell phones and web browsers, and hunky mainframes are being replaced by server farms with LINUX and Open Source stacks. The difference is that software is being delivered more and more as service on demand or just free open source download with support contracts (* join me at another event on open source business model). What this means is that more and more computing power and intelligence is shifting back to the center and it presents huge opportunities for the technology providers such as HP with a combination of hardware, software and services to provide value. […]

  2. Boundaryfree - Technology, Innovation, Globalization - Where limitation does not exist » Seeking Penguin Gold: Open Source Business Models said,

    September 14, 2006 at 12:24 pm

    […] Seeking Penguin Gold: Open Source Business Models By Ray Wu I am going to be a panel speaker for a CSPA event coming up on 09/13/06. Open Source has been a topic dear to my heart and I wrote a blog entry a while back on various business models I see out there. […]

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