July 1, 2008 10:35 AM PDT

The open-source CEO: An interview with Dave Lilly of GroundWork

Dave Lilly, CEO of GroundWork

(Credit: GroundWork)

I caught up with Dave Lilly, founder and CEO of GroundWork, earlier this week to see how things are going. Lilly recently replaced GroundWorks' former CEO, Ranga Rangachari, and I was interested to hear about the changes at GroundWork.

GroundWork is an open-source network management company that ostensibly competes with Hyperic, Zenoss, and other open-source IT management companies, but it seems that GroundWork (as well as these others) tends to be a replacement or complement to the big proprietary offerings from HP, BMC, and others.

What has Dave been working on in his first few months as CEO?

In April, we launched our latest version of GroundWork Monitor Open Source 5.2 for Community, Professional, and now GroundWork Monitor Enterprise to meet the needs of our customer base. In 2007, GroundWork saw customers with distributed, enterprise-class deployments increase to nearly 60 percent of our customer base. Nearly a third of GroundWork's subscriber base upgraded to enterprise-class subscriptions. Additionally, in Q1 of 2008, we signed on some new key customers, such as Cap Gemini, Pioneer Hi-Bred, University of Akron and National Bank of Belgium.

Interesting. How has this move into the enterprise affected your work with other open-source projects, specifically Nagio? I've seen some announcements from you and Nagios over the past few months; can you clarify your relationship with Nagios and some of the other open-source projects out there?

GroundWork is committed to the success and independence of Nagios. We have been working closer than ever with the Nagios team. We also support other "best of breed" open source projects like RRD Tool, Ganglia and Cacti. Our strong relationships with the open source community ensure that our customers are always able to obtain the best available proven solutions.

After all, GroundWork's amalgamation strategy combines more than 80 successful OSS projects with our own open source and proprietary software. The whole GroundWork Monitor product family is considerably more capable and more cost effective (on a TCO basis) than the sum of its parts.

I like big words. You mentioned bringing together open-source solutions into GroundWork's technology using the words "amalgamation strategy." What do you mean?

In the same way that Red Hat integrates the Linux kernel and more than 500 open-source components to deliver Red Hat Enterprise Linux, GroundWork packages, integrates, and documents more than 80 best-of-breed open-source network and systems management projects. This gives our customers the most tested, reliable and best performing IT operations management solution. The benefits of this approach to our customers is accelerated by enabling both community and commercial technology partners to build products and services as part of the amalgamation.

Don't the other open-source IT management companies do the same? How is this separating you from the competition?

Our customers receive the benefits of a solution that is more scalable and secure than the open-source projects by themselves which covers a broad range of highly heterogeneous infrastructure and application environments and is more economical and easier to work with than our competitors. Thus GroundWork provides the benefits of proprietary software like HP OpenView and IBM Tivoli at a fraction of both initial and total costs.

You're acting as this grand unifier, but couldn't people then do that on top of you?

Yes, we are flexible in that way. We have partners who have built everything from custom network map extensions to Yahoo widgets that expand what our solution can provide to users.

I recently wrote a post about "a phased approach to open source business," [I'm sure Dave had this tatooed on his abdomen] where I made the point that a phased approach laid out by MySQL may just be the right approach to an open-source business model. Do you think MySQL has the right idea?

The phased or incremental business-model development seems to describe GroundWork's evolving strategy to a "T," through three phases:

First the open-source project teams developed their products and obtained wide adoption for these products. We sold services to help our customers make use of the open-source products, gaining the insight needed to determine which projects would be the most useful in our Community Edition. We also assisted the open-source project teams by making software contributions and providing logistical support.

Second, we created and launched our free open-source Community Edition and its commercial extensions. We were careful to do this so as to enhance the visibility and reputation of the included open-source projects.

Now we enter our third phase, offering an Enterprise Edition, designed explicitly to serve as a common open standards-based platform supporting the contributions of our partners and customers and integrating to well established commercial offerings as well.

It's an approach that certainly seems to be working. GroundWork was able to attract the talented Tara Spalding as its vice president of Marketing earlier this year, and has been making steady progress in enterprise deployments. It's good to see Hyperic, Zenoss, and GroundWork each doing well in their own areas of expertise. It makes for a much more interesting IT management market and ecosystem.

Recent posts from The Open Road
New startups explore new niches for open source
Analysts as a lagging indicator of success
Symbian on the decline: Time to move on open source
The key to making money: Charge for your product
MySQL's Monty Widenius leaves Sun
Add a Comment (Log in or register) 1 comment
by botchagalupe July 2, 2008 5:43 AM PDT
And now for some hard questions...

1)Why did Ranga the CEO leave Groundwork?

2) Is Dave Lilly capable of being a CEO? Apparently the original investors didn't think so when they put Ranga in charge even though Dave was one of the founders.

3) Was Dave Lilly originally only supposed to be an interim CEO after Ranga? However they can't find anyone willing to take the job.

4) Why has Groundwork lost three key executives in the last two years?

5) Why did Taylor Dondich leave?
In the Trenches with Taylor Dondich

6) Where does a ?C? round invested company that can't show a profit go?

Here is some other light reading on my thoughts of Groundwork.
Groundwork Man Up!
Reply to this comment
Powered by Jive Software
advertisement

Latest tech news headlines

Resource center from News.com sponsors
What you need in business class email.
Mailtrust

Click Here!
Never worry about email again. From mobility and shared calendaring to virus and spam protection starting at only $3 per mailbox. more>

Rackspace Mailtrust
Total Email Relief

We'll take care of your email so you can take care of your business.

14 Day Free Trial

With expert support 24x7x365 we guarentee 100% uptime. Try us for free for 14 days. Never worry about your email again.

Just $3 per mailbox

Choose the plan that is right for your company and only pay for what you need.

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.

Add this feed to your online news reader

The Open Road topics

Featured blogs

advertisement
advertisement

Inside CNET News

Scroll Left Scroll Right
  • News - Business Tech

    Chrome's JavaScript challenge to Silverlight

    The advent of Google's Chrome browser, software pros say, should spur a big speedup for JavaScript, which would raise its standing against Microsoft's Silverlight technology.

  • Gallery

    Photos: Top 10 reviews of the week

    Here are CNET Reviews' 10 favorite items from the past week, including the TiVo HD XL, Sony Cyber-shot DSC-H50, and the Dish Network's newest digital TV converter box.

  • News - Apple

    Apple watchers spot 'iPod Nano' pix, iTunes hints

    The rumor mill has long been predicting a longer, leaner new version of the iPod Nano, and now it's conjuring up some pictures.

  • Outside the Lines

    EIC Squared: Chrome, iPods, and a Dell-Salesforce union

    On this week's EIC Squared podcast CNET's Dan Farber and ZDNet's Larry Dignan discuss Google's latest rocket launch--the Chrome browser--as well as Apple's iPod event next week and a Dell-Salesforce.com union.

  • Video

    Katie Couric reflects on first Webcast

    The political conventions are over and so are CBS Evening News anchor Katie Couric's first series of Webcasts. CNET's Kara Tsuboi sat down with Couric on the final night of the Republican National Convention to discuss what she liked about Webcasting, some of her most memorable guests, and whether TV news will still be around by the next round of conventions.

  • News - Digital Media

    At 10 years old, whither Google?

    Daniel Sieberg of CBS News looks at how the company grew exponentially from start-up to superstar and part of our culture, but what's ahead?

  • Video

    YouTube plays party politics

    During the presidential campaigning four years ago, YouTube didn't even exist. Now it's a tool candidates must master to get their message across. CNET's Kara Tsuboi stops by the YouTube upload booths at the Democratic and Republican conventions to find out why Google's video site has such a big presence in Denver and St. Paul, Minn.

  • News - Gaming and Culture

    Are Demo and TechCrunch50 fragmenting their audiences?

    With both events scheduled to start Monday, many press, as well as venture capitalists and others are having to choose which one to attend.

  • News - Cutting Edge

    Execs predict next Google-like tech

    On eve of company's 10-year anniversary, researchers and business pundits speculate about what technologies might someday have as much impact as Google.

  • Gallery

    Images: The art of 'Spore' prototypes

    Will Wright and his Maxis team worked on dozens of prototypes to test the elements of their soon-to-be-released evolution game. Here's a sampling.

  • Webware

    Mozilla releases second Firefox 3.1 alpha

    Added features include support for a new video tag element introduced with the HTML 5 standard, along with some speed enhancements.

  • Green Tech

    Duke Energy to invest in mini solar power plants

    Can hundreds of rooftop solar panels collectively operate like a central power plant? Duke Energy launches $100 million distributed solar program to find out.