May 19, 2005 9:25 PM PDT

Investors to commercialize open source

An investment venture will try to replicate the model of Gluecode, an open-source start-up acquired by IBM, with a fund dedicated solely to open-source software.

The venture, called Simula Labs, will take open-source development projects and seek to create businesses around them. That approach was employed at Gluecode, a company founded in 2001, which was bought by IBM earlier this month.

Simula Labs, which intends to announce its formation Monday, has gotten commitments from Redpoint Ventures and Mission Ventures to put in $10 million to $15 million for six to eight start-ups during the next three years. Winston Damarillo, who founded Gluecode and was chairman when it was sold, will act as CEO of Simula Labs.

Increasingly, entrepreneurs and venture capitalists are using open-source software and a subscription-pricing model to build new companies. In particular, the area of open-source infrastructure software, which is typically an expensive purchase for customers, has seen a great deal of activity.

One of the first ventures will be the creation of a company called LogicBlaze, which will be built around an open-source project called ActiveMQ, Damarillo said. The ActiveMQ software is an open-source version of standardized Java-based messaging software for sharing data between applications.

Simula also created a company called Mergere around Java-based software development life cycle tools.

Other areas Simula is looking at include directories and identity management, Damarillo said.

"We're targeting mature enterprise infrastructure technologies that have a standard," he said. "We're looking at open source as a software industry transition."

The business model Simula intends to set up with these planned ventures is very similar to that of Gluecode. Companies will employ the important engineers behind an open-source project and sell subscription services for support, training and more functional products based on the open-source code.

Simula executives will take an active role in company creation, acting as co-founders and providing expertise. Damarillo said he intends to use an Apache-style open-source license with products.

8 comments

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OSS Inovation strikes again...
OSS = copy what someone else all ready invented and give it away for free.
Posted by gfsdfge (130 comments )
Reply Link Flag
forgot...
I want to start a support company for Quicken. But of course I don't have the right to do that, nor do I have the source code to be able to do it well. So please, OSS community, put out an open source version of quicken and give it away so I can have my support company. It would be nice if you commented the code in Hindi, because I plan to off shore the company right from the start.
(-:
Posted by gfsdfge (130 comments )
Link Flag
OSS Inovation strikes again...
OSS = copy what someone else all ready invented and give it away for free.
Posted by gfsdfge (130 comments )
Reply Link Flag
forgot...
I want to start a support company for Quicken. But of course I don't have the right to do that, nor do I have the source code to be able to do it well. So please, OSS community, put out an open source version of quicken and give it away so I can have my support company. It would be nice if you commented the code in Hindi, because I plan to off shore the company right from the start.
(-:
Posted by gfsdfge (130 comments )
Link Flag
Plea to OSS Comunity...
I would like to start a support company for Quicken. Unfortunately, I don't have the right to do so, nor do I have the source code to be able to do it well. So, Please OSS community, create a version of Quicken with a silly name and give it away for free. It would also be helpful if you commented your code in Hindi, as I plan to off shore the company right away.
Thanks! (-:
Posted by gfsdfge (130 comments )
Reply Link Flag
Plea to OSS Comunity...
I would like to start a support company for Quicken. Unfortunately, I don't have the right to do so, nor do I have the source code to be able to do it well. So, Please OSS community, create a version of Quicken with a silly name and give it away for free. It would also be helpful if you commented your code in Hindi, as I plan to off shore the company right away.
Thanks! (-:
Posted by gfsdfge (130 comments )
Reply Link Flag
Money from open source
For GlueCode, I suspect the main money is going to come from maintenance and support of OS products...I really doubt that charging for enhancements will survive as a business model in the long run

A page that provides more resources for the question: how to make money from open source software - <a class="jive-link-external" href="http://www.eit.in/sw/free_software/making_money/making_money_from.html" target="_newWindow">http://www.eit.in/sw/free_software/making_money/making_money_from.html</a>

Some thoughts from <a class="jive-link-external" href="http://www.ebpo.in" target="_newWindow">http://www.ebpo.in</a>
Posted by ecacofonix (14 comments )
Reply Link Flag
Money from open source
For GlueCode, I suspect the main money is going to come from maintenance and support of OS products...I really doubt that charging for enhancements will survive as a business model in the long run

A page that provides more resources for the question: how to make money from open source software - <a class="jive-link-external" href="http://www.eit.in/sw/free_software/making_money/making_money_from.html" target="_newWindow">http://www.eit.in/sw/free_software/making_money/making_money_from.html</a>

Some thoughts from <a class="jive-link-external" href="http://www.ebpo.in" target="_newWindow">http://www.ebpo.in</a>
Posted by ecacofonix (14 comments )
Reply Link Flag
 

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