Open Source Business

January 16, 2009

Open source business plan for Mindquarry

Lars Trieloff was already familiar with open source software before he launched Mindquarry as a business based on it. Trieloff studied in Germany at the Hasso Platner Institute, where he received a degree in software systems engineering. During that time he noticed that, outside of the software development industry, true collaborative efforts didn’t happen often, and when they did, there often wasn’t an efficient and user-friendly way to conduct that collaboration.

“I had the idea to create collaborative software that combines aspects from software systems such as wikis, version control systems, issue tracking systems, and mailing lists,” Trieloff says. “I was accustomed to using these tools, and I found it irritating that collaboration outside of the software development industry did not work. [At one job,] after spending a week setting up version control, wiki, and bug tracking, I was frustrated, because I could not convince my co-workers to use these tools, no matter how productive we might have been. Their complexity and power made them nearly unusable.”

That’s when he got the idea for Mindquarry. Mindquarry is open source, collaborative, and easy to use, says Trieloff. It’s designed to remove the usability barrier.

After the usability barrier comes what Trieloff calls “data lock-in. We allow our users to cross this barrier by offering an open REST API and standards-based storage. The third barrier is lock-out of users due to restrictive proprietary licenses. With our participatory open source model we are tearing down this third barrier.

“My original idea was not to make [it] open source,” he says. “I already had gathered experience as a user, contributor, and developer in open source, but had not thought about the business opportunities in open source until my co-founders Alexander Saar and Alexander Klimetschek and our investor pointed me in this direction. It then became obvious: what the world needs is not only better software for supporting the teamwork of knowledge workers, but that in order to make the software useable by everyone, we had to remove all barriers.”

Trieloff says he’s on the pragmatic side of the open source philosophy. “We are offering open source, not because I believe software must be free, but because I believe it is the best option for customer and vendor,” he says. “Since the late 1990s I have been using open source software. My first real open source software was PHP3 and MySQL. I chose them not because they were free, but because they gave me options to develop software that other proprietary systems did not have. This, of course, was a result of freedom, but freedom was not what made my decision.”

Mindquarry will generate profits through a subscription model through which customers receive maintenance and support. “For our enterprise customers this removes another barrier: uncertainty when dealing with community-created software.” Mindquarry is also available in a hosted version where small companies can, for a fee, take advantage of a pre-installed version of Mindquarry that resides on remote servers.

Trieloff says the idea of community is the most important aspect of launching a business based on open source. “If you are using open source software internally on mission-critical systems, or starting a company on this software, make sure to be involved in the community,” he says. He also cautions that “the community that creates large parts of the software must be understood to keep your requirements and the development in sync. Without your contribution, the community will hardly create the software you need.”

October 30, 2008

Linux Today Managing Editor Carla Schroder

Filed under: open source business model — Tags: , , — tina @ 1:15 am

arla Schroder says she just “kind of wandered into” her current life as a free software advocate and well-known IT journalist. “I don’t have much in the way of formal education. But I’ve always been mechanically inclined – your classic ripping things apart and figuring out how they work. I think that makes open source a natural fit for me.” (more…)

October 23, 2008

A business built on open source, virtualization, and clouds

Filed under: open source business model — tina @ 6:42 pm

ReadyTechs provides network support services for companies that don’t want the expense of hiring and caring for their own employees. Now CEO Gerry Libertelli says the company is using Linux virtualization to open a new income stream based on cloud computing. (more…)

August 8, 2008

Software configuration management built on OSS gives Virtusa a competitive advantage

Virtusa, an IT services company founded in 1996, was using proprietary version control and collaboration systems to develop software for its clients until Sri Lankan founder Kris Canekeratne decided that a custom solution built on open source components was a better fit for internal use. As a result, the company ended up saving millions of dollars on licensing fees and acquisition costs. (more…)

May 2, 2008

Simple Sitemap

Filed under: open source business model — tina @ 6:49 pm


Enterprise lessons from open source success

I wrote a special report for SDTimes on open source development methodologies. They’ve published it as a special report, both at the Web site and in their print edition. (PDF)

February 11, 2008

Financial group trusts Linux platform to protect customers assets

Western & Southern Financial Group provides insurance and investment advice for businesses and consumers. The conservative nature of the business means that Western & Southern needed the most secure and reliable infrastructure available. After years of running the Sybase database on Sun’s Solaris servers, IT Systems Manager Paul Jackson recognized the need to get the platform “up to speed.” When he checked on the cost to replace the proprietary hardware and operating system the company had relied on for so long, it was so expensive that he began looking for another solution. (more…)

January 12, 2008

eCos real-time OS makes short work of building a SAN appliance

Compellent has been shipping its SAN appliances to small to medium-sized companies for three years, growing from $4 million in annual sales to more than $23 million last year. Part of the reason for that growth, says cofounder John Guider, is that Compellent executives have recognized the value of making an open source operating system one of the building blocks of the company’s SAN offerings. (more…)

November 12, 2007

Open source entrepreneur turns his hobby into an Inc. 500 enterprise

iFAX, a commercial company that is built on open source fax server software HylaFAX, was recently included in Inc. Magazine’s 2007 list of the top 500 fastest growing companies in the United States. iFAX founder Darren Nickerson says one of the keys to iFAX’s success has been its commitment to the open source community behind HylaFAX. “Our success is tied to the openness of the software.” (more…)

November 11, 2007

Community is top priority in monetizing open source Openads

Openads, formerly known as phpAdsNew, is one of the more successful open source development projects. Its online advertising software is used by many thousands of domain owners who want to make a profit on their Web content by selling advertisements. Scott Switzer, the project leader, recently went commercial with the project, securing $5 million in venture capital and a new CEO straight from Skype. The key to the company’s success? “I have really seen the value in what a community can give to a software project,” he says. (more…)

POS System – MerchantOS is based on open source software. It’s web based, easy to use and affordable. At MerchantOS they make retail software easy.

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