May 1, 2009 8:07 AM PDT

Open-source companies log impressive growth

by Matt Asay
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Even as the global economy tanks, open-source companies continue to soar. A range of open-source companies reported sales and community growth this past week, including:

  • Funambol: As announced on its Web site, Funambol's mobile open-source community has grown 2,000 percent, downloads are up 34 percent, and the number of active Funambol servers is up 42 percent in the past three months alone.
  • Actuate: While business intelligence vendor Actuate's overall license revenues grew 15 percent last quarter, its BIRT (i.e., open source) revenue grew 32 percent.
  • Linux Desktop: While there's no one company behind Linux for personal computers, it's significant that Linux just broke through to 1.02 percent market share for personal computers, the first time it has ever risen that high, according to data compiled by Net Applications. (Meanwhile, even in beta, Windows 7 continues its march, now hitting .25 percent market share.)
  • Red Hat: Despite a bruising economy, Red Hat has been on a hiring binge, adding 600 employees to its now 2,800-strong workforce. The company isn't stopping there, noting in SEC filings that it plans to continue to add to its headcount in 2009.
  • Sourcefire: Albeit quiet for the past year, Sourcefire has been keeping busy, increasing year-over-year first-quarter revenues to $18.6 million, a 36 percent gain.
  • Firefox: According to Net Applications data, Firefox continues to gain market share at the expense of Microsoft's Internet Explorer, rising to 22.48 percent market share in April. Google's open-source Chrome browser also grew to 1.42 percent, while IE tumbled to 66.10 percent, a drop of more than 1.5 percent in the first quarter of 2009.

In other words, it's a great time to be in the open-source market. I advise more than 10 open-source companies, and I'm not aware of a single one that is seeing anything other than growth through the downturn.

This is the right time for open source: a time when enterprises care more about the right functionality at a compelling price than clinging to 20th-century brand names whose idea of CIO value seems to be the software audit.


Follow me on Twitter @mjasay.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
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Add a Comment (Log in or register) (9 Comments)
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by bman_den May 1, 2009 9:10 AM PDT
While I'm nuetral on the open source debat, it seems to be aconflict of interest for you since you advise open source companies.
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by jessiethe3rd May 1, 2009 9:21 AM PDT
As is traditional with today's news... this isn't news - this is commentary.
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by pentest May 1, 2009 3:16 PM PDT
His writings are clearly opinion and marked as such.
by ESofia May 1, 2009 10:05 AM PDT
I wonder if non-technology companies that are experimenting with open-source type of organizaiton are seeing similar growth patterns?
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by obvio-capitao May 1, 2009 11:28 AM PDT
Windows 7 on October 23 -- what that means for Open Source

According to several news sources, Acer, the world's joint second largest manufacturer of PCs, has reportedly given October 23 as the date when Microsoft's successor to Windows Vista will become available.

If that date is confirmed, it would be very nice if Canonical could announce a new Ubuntu release on the exact same day.

The reason is simple:

All the news and articles that would talk about Windows 7 will start to mention the free, open source alternative. David vs. Goliath, what a story! Ubuntu 9.10 will surf on Windows 7 waves.

What does that mean to Open Source?

http://capitao-obvio.blogspot.com/2009/05/windows-7-on-october-23-what-that-means.html
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by monkeyfun14 May 1, 2009 8:33 PM PDT
But you can bet your ass that Microsoft is going to have better advertising and people will still not know what Linux is.
by kojacked May 2, 2009 8:32 AM PDT
Linux's best bet would be to wait until it's quiet to make a splash. Microsoft is going to be making a lot of noise when Windows 7 is released and no one will hear Canonical or any of the other Linux crowd. It's just like an up-and-coming artist dropping an album on the same day as another artist's album that has been greatly anticipated being released. Record companies (evil) stage the release so they get the most bang for the buck for the up-and-comer. The sad truth is Linux is still and indie artist and has no big record deal. Microsoft and Apple are the big labels; no one else even comes close.
by sturunner May 3, 2009 3:14 PM PDT
Karmic Koala is coming in October, of course, right on schedule. Given the cost difference in this economy, we will be-- as the old chinese curse goes-- living in "interesting times."
by t8 May 3, 2009 3:32 PM PDT
Nice blog. I agree. Especially about the audit. You are not subject to audits with Open Source. Open Source is a better fit and requires less auditing management.
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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