November 08, 2006

Open-source ventures: Where's the money?

Venture capitalists are cautious about investing in open-source startups after the lessons learned from dot-com bust

That's why many startups choose to combine open-source software with proprietary software, and then carve out their niche, for instance by targeting smaller companies with a less complex and costly product, as JasperSoft is doing with its open-source business intelligence software, Wight said.

But the mix of open-source and in-house proprietary software also raises the issue of how open a company that labels itself open source really is, according to Charles Nicholls, founder and chief executive officer of business intelligence vendor SeeWhy Software. "This is a debate we're having constantly in our company," he said.

The fifth question that Davidson posed -- Can startups keep the open-source spirit alive while striving to make money? -- drew an answer from IBM, one of the world's largest IT companies and also a major contributor to the open-source community.

Money talks, conceded Adam Jollans, open-source software strategy manager at IBM, but the good thing is, not all developers are listening.

"Engineers aren't always after money," Jollans said. "Many of them want peer group recognition, which the open-source community provides. Community recognition is a huge motivating factor; industry won't be able to choke this."

The one-day Open Source Forum was hosted by the Hasso Plattner Institute for Software Systems Engineering in Potsdam, together with IBM and Deutsche Telekom.

Close

On Twitter now

Applications

Powered by Twitter

On Twitter now

White Paper

D2D Virtual Tape Library Replication Primer

This whitepaper explains the terminology and concepts behind Data Replication technologies and establishes some sizing rules through worked examples. Learn the new paradigm in disaster tolerance—protect data anywhere.

Download now »

White Paper

An Alternative to Virtualization for Datacenter Cost Savings

Server virtualization is a popular option for dealing with mounting datacenter costs. Another equally promising approach is the use of an Application Delivery Controller. Citrix NetScaler provides a low-cost way for organizations to reduce their server count and accrue cost savings from a reduction in space, cooling, power and personnel.

Download now »

White Paper

Why Your Firewall, VPN, and IEEE 802.11i Aren't Enough to Protect Your Network

The emergence of WLANs has created a new breed of security threats to enterprise networks.

Included in HP ProCurve WLAN solutions is security technology that alleviates threats from WLANs through:
* Monitoring wireless activity inside and out of the enterprise
* Classifying WLAN transmissions into harmful and harmless
* Preventing transmissions that pose a security threat to the enterprise network
* Locating participating devices for physical remediation

Download now »

White Paper

Bringing the Edge to the Data Center

Effectively address data protection challenges, implementing solutions that help store and protect business–critical data while cutting costs and improving efficiency and reliability.

Download now »

Sign up to receive Applications Resource Alerts

Subscribe to the Today's Headlines: First Look Newsletter

Find out what will be news for the day, with our first-thing-in-the-morning briefing.

©1994-2009 Infoworld, Inc.