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Linux and Business


VA Linux Systems bails out of the hardware business. Many have wondered what would happen to the Linux hardware vendors as the competition from the large PC companies intensified. For a long time it looked as if some of them, at least, would be able to defy the odds and thrive. Then the bubble burst. The long-term nature of the Linux hardware market as it will really be became more apparent on June 27, when VA Linux Systems, the company that personified that market, announced that it would cease selling hardware.

Failing hardware companies inevitably attempt to recast themselves as software companies, and VA Linux is no exception. The "about VA Linux" section in the above-mentioned announcement describes the new company:

VA Linux is a provider of application software, featuring the SourceForge OnSite collaborative development system; Linux software development and consulting services; and OSDN, the Open Source Development Network.

The new company will focus in three areas:

  • SourceForge OnSite, a version of the SourceForge site meant to be deployed behind corporate firewalls to support internal development processes; it can also be deployed externally for corporate open source projects. SourceForge OnSite will be VA's primary focus, and is expected to generate "the majority of its revenue."

  • OSDN, including Slashdot, Freshmeat, and the public SourceForge site. According to the announcement, no changes are expected in OSDN.

  • Linux software development and consulting services.
There will, of course, be layoffs as part of a move this drastic: 35% of the staff in this case. That will still leave the company with almost 300 employees, which is not exactly small. It is, in fact, quite a large staff to support with revenues from free software and banner ads.

VA's departure from the Linux hardware business is truly the end of an era. The company's role in the growth of Linux has not been small; a great many Linux users out there got their start on a box from VA. And VA continues to employ numerous Linux hackers who contribute to the development of the system. And, for better or worse, much of the free software development activity now happens via SourceForge.

The course chosen by VA looks challenging, to say the least. The company has a lot of smart people, though, and might just find a way to pull it off. We wish them luck.

IPOs are in the news. MandrakeSoft decided to raise money with an IPO. "This IPO should be a very rapid process which also allow us to involve our current base of users and contributors who already understand our philosophy much better than a normal investor does. Many of these people, who are already strong Mandrake Linux supporters, have been requesting for quite some time an opportunity to purchase a part of MandrakeSoft." The "Marché Libre" of EuroNext - Pan-European market (Paris, Brussels, Amsterdam) is the chosen venue. We hope the European market is better than the US market.

Meanwhile, LynuxWorks withdrew its IPO plans, citing horrible market conditions.

Red Hat Introduces Red Hat Database. Red Hat has officially announced Red Hat Database. The Red Hat Database product is an open source database solution, based on PostgreSQL 7.1, and optimized with Red Hat Linux 7.1.

Red Hat launches consulting services. Red Hat announced a new suite of consulting services that includes Linux migration and integration services, open source Web infrastructure services and open source strategic opportunities.

European Union supports OSS projects. Three open source projects were launched in May and June 2001 via the EU's Information Society Technologies (IST) program. (Thanks to Tobias Benedikt Hoevekamp)

Open Source Development Lab Announces 2001 Enterprise Achievement Award Contest. The Open Source Development Lab (OSDL) announced a call for entries for its 2001 OSDL Enterprise Achievement Award. A cash prize of $25,000 will be granted to a developer or group that has made a significant contribution to Linux for the enterprise.

Jordan Hubbard joins Apple. According to his note posted on the FreeBSD announcement mailing list, the FreeBSD leader has taken a position with Apple to work on Darwin-based projects. "Let me assure you all that Apple does fully understand the importance of FreeBSD and they don't want me or anyone else to stop working on it. FreeBSD doesn't compete with Apple's product offerings in any way and provides an excellent source of technology for them."

French text on Zope. The first text published on Zope is now available for ordering online. The text, written in French and published by Eyrolles, is titled simply "Zope".

LPI News. The latest issue of the LPI News is out. Updates include a milestone for Lintraining, LPI in Italy and Korea and a note about preparing for the LPI exams.

You thought Unix was an operating system?. [Unix diapers] For some amusement, have a look at this page, maintained by Dennis Ritchie, which is a collection of products worldwide using the "Unix" brand name. They don't have much to do with operating systems... (Found on LinuxFR.org).

Linux Stock Index for June 21 to June 27, 2001.

LSI at closing on June 21, 2001 ... 29.29
LSI at closing on June 27, 2001 ... 29.45

The high for the week was 29.49
The low for the week was 29.23

Press Releases:

Open source products

Proprietary Products for Linux

Distributions with Hardware

Products and Services Using Linux

Products With Linux Versions

Books & Training

Partnerships

Personnel & New Offices

Financial Results

Section Editor: Rebecca Sobol.


June 28, 2001

 

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