Sun Acquires VirtualBox Open Source Virtualization Tool

InformationWeek today reported Sun bought German open source firm Innotek, developers of the VirtualBox desktop virtualization tool used by developers. According to the IW report:

Sun said VirtualBox has been downloaded more than 4 million times since being made available in January 2007, and Sun moved quickly to become the acquirer as it maps out a future suite to virtualize customer environments. It plans to use VirtualBox to extend the Sun xVM virtualization software, its hypervisor based on open source Xen.

The story does not mention the price Sun paid, but it’s a sure bet it’s not close — by several factors of ten — to the $1B US the recent convert to commercializing open source paid for MySQL.What confounds me is … why? VirtualBox is a nice addition to a developer’s toolkit, and would make sense if Sun were pursuing a more developer-centric path into the market. But while NetBeans is a mature open source IDE for Java, supported by Sun, it does not have the following of the Eclipse-based Java products. So maybe that’s the answer — Sun IS trying to woo developers out of the long shadow IBM casts over Java development with Eclipse. Can someone shed some light on this issue? Post your comments below.

Enterprise Open Source News Roundup – 11 Feb 08

A couple of headlines to start off the week.

Not about open source, exactly. The issue is ad-supported web productivity applications that will compete with Office, though the story does mention Yahoo’s Zimbra in a comparison to Microsoft Exchange.

The Alfresco “content community” is surveyed, and the results are in. Ubuntu & Red Hat Enterprise Linux are moving up. Tomcat and JBoss hold the lion’s share of the app server market. More details and graphics in the post.

Why the Open Source Acquisition Mania? It’s the Distro

Jonathan Schwartz, Sun’s newly buzz-making CEO thanks to the company’s $1B US acquisition of MySQL last month, gave the keynote at this week’s SugarCRM conference. In his keynote, as reported by InfoWorld, Schwartz identified a key reason why his company scooped up the widely-used open source database firm: distribution.

“What was attractive was how profound their distribution was,” Schwartz said. MySQL offers access to about 11 million deployments around the world, and Sun began to see MySQL delivering real value, innovation, and choice, he said. MySQL sells services and support for its database.

If you’ve been wondering about all those other open source acquisitions, wonder no more. The value is in the distros.Paying less than $100 US for each deployment — make that ‘prospective paying customer who is already using the product’ — Sun has access to millions of potential customers for Sun services, other software products and hardware. That’s not a bad price for a solid customer lead in a business where the long-term value of any enterprise customer is measured in six or seven figures, and it ignores the very real value of MySQL’s current annual service and support revenue (estimated at $100M US) and harder-to-quantify value of its intellectual property.So maybe we’ve got an algorithm for an open source project valuation. For example, Yahoo’s acquisition of Zimbra last September cost big Y $350M US. According to a Wall Street Journal story on Zimbra in November 2006, they had some four million users. Allowing for some shrinkage, that’s quite close to the $100 per deployment for MySQL.But for all you FOSS project leaders out there who are running to check your download and registration numbers, keep in mind MySQL and Zimbra had “commercial” versions and paying customers prior to the big buyout. So don’t count on pocketing a Franklin for every download just yet. Still, a community can dream, can’t it?Got some other ideas for valuing an open source project? Post your ideas and comments below.

OpenID Brings Five Tech Heavyweights on Board

The OpenID Foundation today announced Google, IBM, Microsoft, VeriSign and Yahoo! had signed on as the open source identity project’s first corporate board members. If you were concerned about the all those mammoth tech firms weighing in on the spec, the foundation’s announcement says:

“Today’s announcement marks a milestone in the maturity and impact that the OpenID community has had. While the OpenID Foundation serves a stewardship role around the community’s intellectual property, the Foundation’s board itself does not make any decisions about the specifications the community is collaboratively building.

The release goes on to say:

At the beginning of 2006, there were fewer than 20-million OpenID enabled URLs and less than 500 websites where they could be used. Today there are over a quarter of a billion OpenIDs and well over 10,000 websites to accept them. OpenID has grown to be implemented by major open source projects such as Drupal, cornerstone Web 2.0 services such as those by 37signals and Six Apart, as well as a mix of large companies including as Apple, Google, and Yahoo!.”

Even non-tech sites like CNN/Money were picking up the news today. Having Google, Microsoft and Yahoo! all the same story that’s NOT about the Micro-Hoo buyout is probably a good thing.But while there may be a lot of OpenIDs out there, I’m not sure I’m holding one, nor am I sure any of the sites I visit make use of OpenID. Do you — or sites you frequent — use OpenID? And are any enterprise companies using OpenID as a way to authenticate their users behind the firewall? I’d like to hear about it. Please post your comments below.

Zimbra 5.0 Adds Mobile Tools and Yahoo! Zimlets

Perhaps a bit overshadowed by all the Yah-Soft (or is that Micro-Hoo?) wheeling and dealing is today’s release of Zimbra Collaboration Suite 5.0, one of the most visible items in Yahoo’s enterprise open source pantry. While it’s probably not the main reason the boys in Redmond decided to plunk down $44B US to acquire the purple search giant, Yahoo! thought enough of the popular open source web-based e-mail suite to acquire it back in September for $350M US.The new version adds Outlook 2007 compatibility, additional support for devices including “BlackBerry Enterprise Server, J2ME-enabled handsets such as the Motorola RAZR, and a new version of ZCS for mobile web browsers.” Plus Zimlets for Yahoo! services. To quote from the release announcement:

“New Zimlets in ZCS 5.0 leverage Yahoo! properties, including Flickr, Yahoo! Local, Yahoo! Finance, and Yahoo! Search. Later this year, Zimbra’s innovative technologies will be incorporated into properties including Yahoo! Mail and Calendar.”

Other enhancements include built-in IM, a shareable Zimbra Briefcase for email attachments and Zimbra Desktop, an AJAX-powered mode for online or offline access of IMAP and POP3 email servers. For a more in-depth look at ZCS 5.0 and some nifty screen shots, check out this item on Mashable.com.

Enterprise Open Source News Roundup – 01 Feb 08

Mergers and acquisitions made the news again this week which, given the Microsoft-Yahoo bid, is like saying the Biblical flood was an interesting weather event. Best MSFT-YHOO one-liner, again from Kara Swisher of Wall Street Journal‘s BoomTown: “And while it’s never over until it’s over, let me just say, for Yahoo, it’s over.”The deal has open source implications too, such as: what becomes of Zimbra? Some opinions:

We’ll blog more on the current open source M&A boom next week. But what’s your take? Do you think consolidation among open source projects helps or hinders adoption by enterprise open source users? Post your comments below.

Are There Open Choices for Open Source Support?

Alex Fletcher’s post “Meeting the needs of the unpaid on the road to gaining customers” raises a very interesting point for enterprise users of open source applications: What is the right level of support for the OSS needed in my organization?Fletcher mentions this article on choosing commercial support to make the point that too often, support for open source is seen as an either/or option: free, as in do-it-yourself; or commercial, as in subscribe to our program and pay moderate to serious fees.But he thinks there’s lots of room in the middle for support organizations to help the “unpaid” — or low-paying — enterprise user. This is both a customer-development strategy and a new business opportunity. Citing “building internal competencies” as a key reason many organizations choose an enterprise open source solution in the first place, Fletcher suggests:

Oddly enough, the intersection between employing open source and building self-sufficient competency is where support providers should examine how they can evolve into a more relevant entity. Perhaps instead of attempting to become the sole source for upgrades, vulnerability assessment and/or migration, support providers should seek to offer a wider array of flexible support (and licensing) options for those who choose to go it alone?

How about it? Would a pay-as-you-go approach to open source support appeal to your organization? Has your firm already purchased a support contract? Or does paying for open source support run against the whole rationale for using open source? Post your responses and comments below.

LoopFuse OneView 3.0 Launch

This sales and marketing automation tool launched updated on-demand hosted and download-and-run open source versions this week. While ComputerWorld says the company came out of “stealth” mode this week (so how did they get to version 3?), it’s been operating since Q2 2007 and is currently in the EOS Directory candidate queue. The tool, which combines web metrics, lead generation and management capabilities for enterprise users, is targeting open source firms as early adopters. More info:

Open Source and IT Management

Today’s Wall Street Journal has a great story on HP’s efforts to shrink the size and cost of their IT infrastucture. “Taming Technology Sprawl” (subscription required) details some of the issues the tech giant faced trying to slim down a tech infrastructure swollen by multiple acquisitions and overlapping IT staffs.

“Since July 2005, the Palo Alto, Calif., firm has been in a project to cut the number of computer programs it uses by more than half, and reduce the number of its data centers — where large computers run programs that support H-P’s businesses — to six from 85.”

The cost is significant. “H-P spent $4.2 billion — about 5% of 2005 revenue — to maintain its IT systems” and aims to drop that to 2% of revenue and shed half of the 19,000 person staff.A key problem? Too many software programs.

“Abour eight months after launching the overhaul in mid-2005, H-P’s new Chief Information Officer Randy Mott unexpectedly hit a hurdle. According to a February 2006 survey, H-P employees depended on about 6,000 computer programs — nearly double what Mr. Mott had expected. By then, he was months into the project and had allocated money and staff based on earlier assumptions. “I was blindsided,” says Mr. Mott, who formerly worked at Dell Inc. and Wal-Mart Stores Inc.”

The story goes on to describe other issues, including how CIO Mott had to battle VPs who were loath to give up their departmental computing resources. But I kept thinking about how difficult it is to really keep track of what software programs are in use within an organization, and how many of those might be open-source or otherwise untraceable through conventional license tracking. Then I spotted a mention of Matt Asay’s News.com blog item on the story behind HP’s FOSSology open-source tools. Asay quotes HP’s Christine Marino, VP of Linux and open source, on the creation of an open source tool for open source governance.

Free and open-source software is everywhere. It’s not just Linux (not that Linux is just one thing, anyway). At HP we’ve been using free and open-source software throughout our company for years as a consumer and contributor of free and open-source software.Many years ago we realized that we needed some processes around our adoption of open source. We were very clear that we wanted to take advantage of FOSS (free and open-source software) but also that we needed to manage our use of it. Our processes have grown and evolved over the years, and we’ve written software to assist with these processes.About 18 months ago during our open-source customer councils we talked about the tools that we had built internally and there was almost a rush to the doors, with our customers clamoring for these kinds of tools to help them manage their open-source adoption. So, really, it was our customers asking for our assistance in managing their open-source software that was the impetus for our open-sourcing our framework today.

Martino goes on to say that HP considered creating a proprietary product but chose to stay with open source tools because “there’s no one-size-fits-all approach to FOSS governance.” She does not mention CIO Mott, but I can well believe FOSS tracking tools got a big boost internally when the IT cost reduction project arrived.All of this makes me wonder if there are open source tools for managing both FOSS and proprietary software governance? Does open source have a role to play in IT mangement of both types? Post your comments on this issue below.

Enterprise Open Source News Roundup – 28 Jan 08

Highlights from late last week include:

My pick for the enterprise open source item of last week takes a little setup. On Thursday, Microsoft beat forecasts for fiscal 2008 Q@ results, reporting $16.37B in revenues against analyst consensus estimates of $15.95B — beating the estimate by $420M, or 2.6%.Let’s consider what that $420M estimate error mean in the open source world. For example, here are recent quarterly revenues from open source activities at three publicly-traded companies:Red Hat (RHT) $135M 11/30/07Novell (NOVL) $22M 10/31/07 Per CNet IBM (IBM) $135M 12/31/07 Estimated from InfoWorld’sHas Open Source Sold Out?”That’s $392M of open source revenue from three major software vendors– still less that the analyst’s margin of error for Microsoft’s revenues in the same period. It’s a comparison that would give any financially-oriented software exec something to think about.We all know MSFT is huge — really huge. And open source revenues are still small — really small. That might seem intimidating to some, but to me, it means enterprise open source has a lot of room to grow without taking on Microsoft directly. That’s probably good news for everyone.

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