July 27, 2009 4:13 PM PDT

Mozilla: Well positioned against Google, Microsoft, and Apple

by Matt Asay
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It's a good thing that Mozilla is profitable, because the open-source foundation would likely struggle to get venture funding.

For any Sand Hill venture capitalist, Mozilla fails to tick any of the correct boxes. While it does have a world-class development organization, Mozilla also relies on an external, unpaid workforce to contribute up to 40 percent of its code. Also, 88 percent of its revenues come from one source, Google, which also happens to be a competitor.

Speaking of competitors, it has three big ones--gargantuan ones. Google, Microsoft, and Apple. Tell a VC that you want to go up against one of these and you're likely to be turned away. Tell them you want to take on all three and, well, they might just make a full-on sprint for the safety of their Aston Martins.

And yet, Mozilla may be superbly positioned to compete with these big competitors precisely because it isn't anything like them: at its core, Mozilla is a nonprofit foundation that wants to save the world more than it wants to make a buck.

The New York Times highlights Mozilla's challenges in a searching review, but it falls just short of highlighting the fact that Mozilla's success derives from its unique mission, which encourages broad development and adoption, and is a direct byproduct of its nonprofit structure.

Because it is a nonprofit, Mozilla can lobby governments differently, and it has. Because it is a nonprofit, Mozilla can focus on delivering an unparalleled user experience, not on figuring out how to monetize the Web, hardware, etc.

Because it is a nonprofit, Mozilla can be truly disruptive in a way that its competitors cannot.

I'm sure there's not a day that goes by that John Lilly, Mitchell Baker, and the other Mozilla executives and employees don't wish that they had the resources their biggest competitors do. I'm equally sure there's not a day that goes by that they don't benefit from the decisions their resource constraints force upon them.

Firefox is as good as it is because of all that Mozilla has...and has not.


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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by jrepenning July 27, 2009 4:53 PM PDT
Poignant "Bogart & Bacall / Hemmingway" reference, there!
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by cvaldes1831 July 27, 2009 5:47 PM PDT
Firefox does not compete with Apple in mobile devices.

Mozilla has no credible candidate for a mobile browser; the likeliest explanation is that the Gecko rendering engine is too porky for such purposes.
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by cvaldes1831 July 27, 2009 6:02 PM PDT
I'll point out that many people on this planet run their lives around their cellphones not desktop computers, like Japan. The world will be doing more on mobile devices.

If Mozilla really wants to be part of the action over the next twenty years, they will need to field a mobile browser, minimally.
by Mike_Beltzner July 27, 2009 6:59 PM PDT
Fennec should be out in early Fall for Maemo based devices, and when NVIDIA Tegra based devices begin shipping you'll be seeing Firefox (the full thing) on those as well. That Gecko is "too porky" is a bit of a myth; it's simply that most organizations which ship a mobile browser have extremely device-dependent ports and optimizations speeding WebKit along, and have all been done in-house and off private forks because the projects were secretive. The hardest thing about the mobile market isn't the software performance, it's cracking into the carrier / device manufacturer ecosystem with a truly open source project.
by cvaldes1831 July 27, 2009 7:51 PM PDT
Well then, the capability to run Firefox on a handheld device has only recently become a possibility. According to your statement it still isn't a reality (i.e., on a product that is in a store) but waiting for the arrival of special nVidia hardware, so it's still vaporware.

It will be interesting to see what sort of impact this Fennec browser will have on Maemo devices. Again more vaporware until it really hits the streets in shipping product.

Thanks for filling us in on the current status of Firefox on mobile devices, though.
by sinequanonymous July 27, 2009 5:52 PM PDT
*sigh bless those crazy non-profit Mozilla people. They've all come so far as an organization ...
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by t8 July 28, 2009 1:08 AM PDT
Microsoft killed Netscape.
Netscape open sourced.
Netscape was released from AOL's control to become Mozilla.
Mozilla creates Firefox a Netscape derivative.
Firefox gets about 20% of the market and counting.

This is a testament to the strength strategy of open source.
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by a3th3r July 28, 2009 11:22 AM PDT
Open source is not what saved the browser, the extended period of time with no competition created an environment that did not foster innovation. From that came an improved product which forced Microsoft to begin improving their browser again. Regardless of whether Firefox was open or closed source we would be seeing much of the same thing now.
by t8 July 30, 2009 7:21 PM PDT
@ a3th3r.

The improved product was the result of Open Source.
This meant that many could develop add ons and hack the source code.

That coupled with a lame IE with no development as you say.
by simonhamer July 28, 2009 7:28 AM PDT
Well done Mozilla. Looking forward top the new Firefox
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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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