“Most Linux people don’t know much about JBoss, the open source firm reported in talks with Oracle about a $400 million purchase. That tops any free software deals I can recall. Novell paid $210 million for SUSE in cash. So, what about this JBoss company? They did it without any initial outside funding, generated revenue and self-funded and stayed true to open source 100% while selling services.”
JBoss Is not Linux
37 Comments
You have to let go , and learn what really happened , if what you believe to be right really happened there is no way that SUSE would not exist today , company that make money and are on track to make billions and possibly make a succesfull IPO ( Which SUSE failed 3 time ) dont sell for cheap ( 210 million might be a lot for you and me but for an OS company that is belived to be #2 in its sector its peanut ).
The only point I see you having right is Novell need to bring its legacy software on GNU/Linux and Open Source.
Personnaly I really like Novell because I know one of its spawn who made a 180 on the other side , http://en.wikipedia.org/wiki/Caldera_Systems
I said in the past SUSE whas dead and that Novell would destroy SUSE as SUSE whas known , guess I whas right , again , but they opened it up so if they die themself , the SUSE community can pick it up from Open Suse.
You really need to do real research on SUSE and Novell.
Regarding SLOX, Novell’s SUSE version is still 4.1
But the OX in SLOX, Open-Xchange, is not Novell’s and is at version 5: http://www.openexchange.com/
Taking a single entity and calling it “Linux” (…) dont make it the entire industry
Luckily the author indeed didn’t do that.
or an example case.
Looks like an interesting example case of a commercially successful FLOSS business to me.
JBoss is a well runned winner in its sector hence it command a real premium
That looks like the point the autor is trying to make here, yeah.
Seriously give 400 million to anyone with half a brain when you know your company is worth at best 10 million and they will sale it to you.
True. What is interesting is how the JBoss project got to the point where it was worth that much to Oracle.
I’m not sure what point you’re trying to make here, could you be a bit more clear?
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2006-02-24 3:04 pmMoulinneuf
“Luckily the author indeed didn’t do that. ”
Wromg :
– Title : JBoss is not Linux
– “Most Linux people don’t know much about JBoss,”
– “That tops any free software deals I can recall.”
– “They did it without any initial outside funding,”
– “about which few Linux people know and fewer understand.”
ETC …
The author whas trying to prove that GNU/Linux people dont know what they are doing and compare different bussiness model.
“Looks like an interesting example case of a commercially successful FLOSS business to me. ”
Thats not the point of the article , I agree with your comment , not with the artcile as the two differ totally ,you totally failed to read it and understand it.
“That looks like the point the autor is trying to make here, yeah.”
No , Final quote :
“I have a high regard for JBoss and wish more open-source companies would follow the JBoss business plan. I also have the … models to emulate.”
He whas clearly comparing GNU/Linux other business model with Jboss model and claiming Jboss to be the best way and that other should emulate it.
“True. What is interesting is how the JBoss project got to the point where it was worth that much to Oracle. ”
I disagree , its probably at that price that the owner are whilling to sale it entirely.
“I’m not sure what point you’re trying to make here”
I know , but I doubt waisting my precious time on you would get you anywhere.
“could you be a bit more clear?”
Its already perfectly clear.
BTW the little reply button under my comment is meant to be used for replying , I guess you did not read that either.
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2006-02-24 4:15 pmraboof
The author whas trying to prove that GNU/Linux people don’t know what they are doing
He’s calling OpenOffice.org, GNOME and Mozilla ‘successful’: sounds like he’s quite okay with the fact that FLOSS projects can have other goals than being successful from the enterprise business perspective.
He whas clearly comparing GNU/Linux other business model with Jboss model and claiming Jboss to be the best way and that other should emulate it.
He just expressed his wish that more open-source companies emulated the JBoss/Golden model. I think he makes it perfectly clear that that is just “one good model” he would like to see more, that does not mean everyone should be doing that. Not even all businesses: he mentions another possible commercial model explicitly.
[i]the little reply button under my comment is meant to be used for replying , I guess you did not read that either.[i]
I did. Duh.
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2006-02-24 4:52 pmMoulinneuf
“He’s calling … enterprise business perspective. ”
Quote from the article :
“I applied Golden’s criteria to several successful open-source projects, including the OpenOffice.org project, GNOME and Mozilla, and found them lacking in the six criteria. I also compared them to some Linux desktop distributions and found them equally lacking. Considering this, it does not surprise me, for example, that the Linux desktop has had some difficulty breaching the enterprise desktop.”
Thats a comparaison for me.
“He just expressed … commercial model explicitly. ”
Just read the article. Dont try to make up for it.
“I did. Duh.”
I know , I just like it when you mock me as if I am the one who is a turd , with stupid sound.
First of all GNU/Linux is well over 700 Billion industry.
I find this hard to believe, and I’m a Linux enthusiasm. Where do you get this figure from?
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2006-02-24 6:34 pmMoulinneuf
I pull them off my ass …
Look its really simple , if it runs use or its service based of GNU/Linux its accounted for in the GNU/Linux industry.
The problem some people have is they concentrate on the software and Computer business. Or they concentrate on territory ( US only ).
For them , things like this :
http://www.linuxdevices.com/news/NS9121418695.html
Dont exist.
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2006-02-24 7:12 pmMatt Giacomini
“Look its really simple , if it runs use or its service based of GNU/Linux its accounted for in the GNU/Linux industry.”
Our mortgage company has on linux server running the db that manages the transaction to the loans we sell on wall street. Our company is worth over $400,000,000 and did over a billion dollars in business last year.
Better add that to your bottom line
Wait we also run Windows, Solaris, and use Cisco hardware better add our figure to the windows, UNIX and networking industries too.
Oh crap wait we also write applications in Java and C# you better also……oh nevermind.
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2006-02-24 8:28 pmMoulinneuf
“Better add that to your bottom line ”
Its already accounted for , if it exist , dont worry.
Funny thing , is you guys think I said Google 100 billion whas included fully in the 700 bilion.
I said :
“First of all GNU/Linux is well over 700 Billion industry. Taking a single entity and calling it “Linux” ( because your a press amateur who dont know that Linux is the name of the kernel only ) dont make it the entire industry or an example case.
Red Hat the current GNU/Linux behemot is worth 3 billion , Google is worth 111.74. The press need to stop making comparaison between looser and winner and try to explain itself GNU/Linux.”
I never said GNU/Linux industry is worth 700 Billion because of Google is worth 100 billion , the point is rather that company who used GNU/Linux like Google are more numerous then people think and a lot of them are worth more then 210 milion. I also said that most report of it speak of the Computer and software sale in the US mostly. GNU/Linux touch way more then you guys realise. I also said that GNU/Linux is vital for Google business , not that they made 100 billion from it directly , But you guys are really funny, you really use all kind of straw man argument.
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2006-02-24 9:26 pmMatt Giacomini
My problem is with your broad inturruption of the term “GNU/Linux industry”.
here is a quote from my webster dictionary on the term “industry”: “a distinct group of productive or profit-making enterprises <the banking industry>”
Just because something is part of your core business does not mean you are part of that industry. Websters example is the banking industry. Many companies rely on the banking industry, and could not do business without a banking industry, but that does not necessarly mean they are part of it.
“the point is rather that company who used GNU/Linux like Google are more numerous then people think”
I’m not arguing that. I don’t think anyone else is either.
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2006-02-25 2:29 am
“They did it without any initial outside funding”
JBoss has gotten 10 million in funding.
And to
“First of all GNU/Linux is well over 700 Billion industry.”
Ha ha ha ha ha ha That is a good one. I love how Google’s market cap (which is way over inflated), is thrown into the Linux iindustry. The make their money off of advertising not Linux. Just because someone uses Linux does not mean that every dolar they make is because of Linux.
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2006-02-24 4:09 pmMoulinneuf
“The make their money off of advertising not Linux.”
No , they make there money of searching , you dont go to Google for advertisement.One of there main income is tie in search with advertisement. There searching power come from there special GNU/Linux cluster.
“Just because someone uses Linux does not mean that every dolar they make is because of Linux.”
They use GNU/Linux its part of the GNU/Linux industry income. Just because you dont like it , is not a valid
argument for most real analyst.
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2006-02-24 5:30 pmRonald Vos
No , they make there money of searching , you dont go to Google for advertisement.One of there main income is tie in search with advertisement. There searching power come from there special GNU/Linux cluster.
Actually, they do make their money of advertising. They don’t earn anything when you hit the ‘search’-button, they earn money because they found a way to use search technology to improve the value of their ads.
Linux is completely irrelevant to this; their search algorithms would work just as well from a FreeBSD/NetBSD cluster, or any of the thousand other cluster-capable OSes (be they proprietary or not). Google doesn’t sell anything related to Linux, they don’t even have much software they distribute that runs on Linux, and they don’t offer any Linux related services. In other words: trying to pass off Google as a Linux company is silly.
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2006-02-24 6:23 pmMoulinneuf
“Actually, they do make their money of advertising.”
No , you cant go and say I whant my name put on say your Google main page inside your name. Its a tie in , with search. I know a couple of real advertiser that would love to be GOOGLE.
“They don’t earn anything when you hit the ‘search’-button, ”
Thats what they whant you to believe , statistic is big business even when anonymous. Market analysis of who search for what is too even as anonymous …
“they earn money because they found a way to use search technology to improve the value of their ads. ”
They earn money because people pay them to have tie in with there search. If search did not exist there ads would not be as profitable , Marketer pay much more for targeted adds then they do for normal advertisemnt to the mass.
“Linux is completely irrelevant to this”
No. Thats a good FUD and lie. Why is there no other Google then ? Many search engine , only one Google.
“their search algorithms would work just as well from a FreeBSD/NetBSD cluster”
Again with the FUD and lie.
“or any of the thousand other cluster-capable OSes (be they proprietary or not).”
Keep Going , you know its a lie , I know its a lie , felt good making it ? Reality say otherwise.
“Google doesn’t sell anything related to Linux”
Google is entirely built On GNU/Linux :
http://www.google.com/enterprise/
“they don’t even have much software they distribute that runs on Linux”
That one I have to agree with. They Buy windows software and keep them Windows centric. But there search engine capability work on any platform.
“and they don’t offer any Linux related services”
http://www.google.com/options/index.html
“In other words: trying to pass off Google as a Linux company is silly.”
Whats silly is the over simplification by some people of thing they dont have 100% knowledge about. Google is part of the GNU/Linux industry because they use GNU/Linux. Claiming otherwise is silly. There a part of the service branch , just like Ebay and NYSE. Remove GNU/Linux and they still exist but there not as efficient and as good.
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2006-02-24 6:43 pm
“Google doesn’t sell anything related to Linux”
Google is entirely built On GNU/Linux :
http://www.google.com/enterprise/
“Where on there does it make that claim?”
I did based on it , Read it , follow the link , look up the spec …
“Do you have any proof for this statement?”
Yes.
“Cuz it would be the ultimate argument for companies to switch to GNU/Linux if Google would suck if it ran on anything other than GNU/Linux..”
Because you think Microsoft and Apple and BSD and all the rest did not try to join on that Supercluster wagon ? Google save Billions in license using GNU/Linux. They dont have a money problem either if other solution where better they would switch in nanoseconds. They use GNU/Linux because its the best.
“You’d think their algorithms & own software would have *something* to do with it as well… Guess not. ”
Now , now , dont put word in my mouth , off course it does mather , but if others where better , faster cheaper , why would they stick with GNU/Linux today ?
“No , they make there money of searching , you dont go to Google for advertisement.One of there main income is tie in search with advertisement. There searching power come from there special GNU/Linux cluster.”
It doesn’t matter WHY you go to google. The fact is that they make their money from click through ads.
“They use GNU/Linux its part of the GNU/Linux industry income. Just because you dont like it , is not a valid
argument for most real analyst.”
They also used concrete to build their building, paint, paper for the office, air conditioners, etc. Just because they use Canon copiers does not mean that now canon is a 700 billion dollar industry.
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2006-02-24 7:39 pmMoulinneuf
“It doesn’t matter WHY you go to google.”
Why is everything. If you dont have a why , you dont have a Google , they cant charge advertisemnt for nothing ( yet ).
“The fact is that they make their money from click through ads.”
They make money from placement ads too. Some people actually pay to have the name of there company show up in related search. Search for roses as an example and you got giftbasket advertised …
“They also used concrete to build their building, paint, paper for … 700 billion dollar industry.”
Nice straw man example , one easily refuted by saying those industry will account for there sale and use of what Google use , exept I doubt they can claim to be the of use in the search engine industry and a major factor , I really whant to see you deliver search result with paper and concrete as fast as with GNU/Linux.
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2006-02-24 8:03 pmMatt Giacomini
Ok I have mostly been playing around with my straw man responses, my real answer behind why I don’t feel your right is because *based on everything I have read* Google money maker is it search based trade secrets (pagerank etc..) and the fact that they have reasched criticle mass. Their business model does depend on being able to run very large clusters based on very cheap hardware running a free operating system.
Yahoo’s business model is similar, but I have never heard anyone proclain that Yahoo bottom line and market cap were part of the BSD industry?
Free operating systems allow the google/yahoo business model to work. Some people will see that has a bottom line for Linux/BSD some won’t.
Besides you, can you point me to some other anaylists that consider Linux customer to be part of the Linux Industry. I have almost always seen the Linux industry defined by vendors that sell Linux products: RedHat, Novall, IBM, Linux based Embedded device companies, etc…
And even in the above example most reports I have seen don’t contribute all the revenue IBM makes to Linux, only the portion of their revenue that relates to the sales of hardware/software/support that is based on Linux directly.
Moulineuff is right. You should educate yourself by listening to him. GNU/Linux is $5 trillion industry.
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2006-02-24 6:09 pmgonzalo
I do.
And I can tell you that some of our clients (big ones) which had no love for using JBoss and only allowed it in a couple of projects, are showing at least mild interest in Geronimo.
… every single Technology by JBoss mentioned in this article is totally, utterly useless to me.
“basic EJB container”, “JBossSX for JAAS”, “JBossCX for JCA”, what is this stuff? what can you do with it? what is it good for?
This doesn’t prove that JBoss’s embrace of open source translates generally to success. It simply proves that Novell doesn’t mind throwing exorbitant amounts of money at companies that may not alter its fortunes all that much…
Browser: Mozilla/4.0 (compatible; MSIE 4.01; Windows CE; PPC; 240×320; HP iPAQ h6300)
Wasn’t JBoss feeling the heat of IBM’s hot breath in their necks already? IBM is a direct competitor if I recall correctly, and one with a lot of clout and eating into JBoss’ buisness model.
What I’m saying is that it seems unlikely Oracle would lay down that much cash and want to directly complete with IBM.
Edited 2006-02-24 12:46
They shouldn’t be as worried about IBM with Websphere as with Bea and Weblogic. Of all of the major java app servers, Weblogic is the most robust (I’ve worked with Jboss, Tomcat 3-4, Websphere, and Weblogic)
Boy have you got it backwards.
Oralce already does compete directly with IBM with databasing software.
First of all GNU/Linux is well over 700 Billion industry. Taking a single entity and calling it “Linux” ( because your a press amateur who dont know that Linux is the name of the kernel only ) dont make it the entire industry or an example case.
Red Hat the current GNU/Linux behemot is worth 3 billion , Google is worth 111.74. The press need to stop making comparaison between looser and winner and try to explain itself GNU/Linux. There is one in 5 company that use GNU/Linux that go bankrupt and extinct , the difference and since its open source and Free Software it never really dies , developper go work for other winning company , form new company or simply the company asset get bought an split to others ( Corel = Xandros = Linspire )
JBoss is a well runned winner in its sector hence it command a real premium that SUSE did not as SUSE whas a total bleeding money looser , it still is at Novell too , but its more on track to become profitable.
The company investors is also a why its doing good :
“JBoss, Inc. is employee-owned and venture-backed by Matrix Partners, Accel Partners, Intel Capital and Bain Capital.”
They also have an internationnal Team of manager that is really doing there job :
Marc Fleury, founder, chairman and CEO
Rob Bearden, chief operating officer
Bob Bickel, executive vice president of strategy & corporate development
Sacha Labourey, chief technology office and general manager of JBoss Europe
Scott Stark, vice president of development
Cary Smith, chief financial officer
Tom Cooper, vice president of worldwide channels
Shaun Connolly, vice president of product management
Brad Murdoch, vice president of services
Seriously give 400 million to anyone with half a brain when you know your company is worth at best 10 million and they will sale it to you. The only one who loose in this deal are the Oracle sharolders who bought a company 8 to 10 time over its real value. I just hope that they are buying a complementary product that will enhance there current offering.
that SUSE did not as SUSE whas a total bleeding money looser , it still is at Novell too , but its more on track to become profitable.
It’s the other way around. Suse had difficult times when they first started off in the face of Red Hat, but they made a focused distribution and brought out focused, well thought out stuff like SLOX. At Novell all of that good work has been undone to the point where SLOX, and any open source groupware, competes with Groupwise which they just will not admit is dead. Novell’s software and it’s open source philosophy are just fundamentally at odds.
“It’s the other way around.”
NO. Otherwise SUSE would have bought Novell.
“Suse had difficult times when they first started off in the face of Red Hat”
SUSE had difficult time when there R&D whas 30 time there income , there sale force whas too big and not making enough sales and when the VC capital stopped coming in and when IBM said *enough pooring money into that company.*
“but they made a focused distribution and brought out focused, well thought out stuff like SLOX.”
SUSE problem never whas its product , its proprietary strategy and its management failure to adpt to gnu/linux reality on the other end whas.
“At Novell all … will not admit is dead. ”
One bring in income the other dont , its as simple as that. IF SLOX whas beating Groupwise in sale they would open up Groupwise code and merge the two product , if its even possible.
“Novell’s software and it’s open source philosophy are just fundamentally at odds.”
No , its just hard to switch totally 180 degree when you been advocating something else for so long. Personaly , at the time I tought 210 million whas a very low price for one of the best GNU/Linux OS , But its the owner and buyer who decide on the price , there is a lot of details about SUSE sales that most people dont know or just dont care about anyway.
NO. Otherwise SUSE would have bought Novell.
YES. That’s exactly what would have happened.
there sale force whas too big and not making enough sales and when the VC capital stopped coming in and when IBM said *enough pooring money into that company.*
No actually, they got through that period. Their revenue was rising exponentially through products like SLOX, and with a trimming of their company they looked in good condition. All companies of Suse’s size and age back then experience those problems.
They also had a pretty clear direction, which is the single most important thing, and which Novell doesn’t have.
its proprietary strategy
Hmmmm, right. And Novell’s current is….what?
One bring in income the other dont , its as simple as that.
SLOX was bringing in income and it was rising much faster than Groupwise. Groupwise’s revenue has been dropping like a brick, and I don’t know one Novell using company who uses it. By that rationale they should continue to use Netware since it brings in the income. We all know they couldn’t continue to do that.
IF SLOX whas beating Groupwise in sale they would open up Groupwise code and merge the two product
No, it’s their attitude towards Groupwise. They want to pretend it’s still relevant. Protectionism of their baby, call it what you like.
No , its just hard to switch totally 180 degree when you been advocating something else for so long.
They’re still advocating that ‘something else’, and they’re certainly not turning 180 degrees to anywhere.
“YES. That’s exactly what would have happened.”
No. In order for SUSE to buy Novell they need 3+ billion. Even Red Hat dont pull that in income.
“No actually, they got through that period.”
No , its IBM who sold them to Novell in 2004.
“Their revenue … company they looked in good condition.”
No. If they would have been profitable , I seriously doubt that IBM would have let them go or at that price. Novell SUSE branch would have made a profit too.
“All companies of Suse’s size and age back then experience those problems.”
Suse is a 1992 company , in 2004 they where a 12 years old company , they are older then Red Hat.
“They also had a pretty clear direction, which is the single most important thing”
No as they where loosing more and more money. Still are.
“and which Novell doesn’t have.”
Novell dont bleed money they make more money then what they spend. They got money in the bank too.
“Hmmmm, right. And Novell’s current is….what? ”
You tell me :
Open SuSe
Yast GPL
etc …
So ???????
“SLOX was bringing in income and it was rising much faster than Groupwise.”
No. It still dont make enough money today to pay for its own R&D.
“Groupwise’s revenue has been dropping like a brick”
No , but its declining and beeing phased out.
“and I don’t know one Novell using company who uses it.”
http://gwadvisor.com/
http://advisorevents.com/CTE0604p.nsf/wSpeakerBios
“By that rationale they should continue to use Netware since it brings in the income”
What make you think they stopped supporting the client that pay them for servicing there legacy netware ?
“We all know they couldn’t continue to do that.”
I know it differ greatly in what they could do and what they decided to do.
“No, it’s their attitude towards Groupwise.”
I think its what you perceive. But Novell is a conglomerate , one hand dont necessarely know what the other does.
“They’re still advocating that ‘something else'”
No.
“and they’re certainly not turning 180 degrees to anywhere.”
I disagree.
No. In order for SUSE to buy Novell they need 3+ billion. Even Red Hat dont pull that in income.
And you really think Novell was, and is, going to continue to be worth that much with two Linux competitors around and no answer to them?
No , its IBM who sold them to Novell in 2004.
No. IBM assisted, as they have relations with both companies, but it was up to Suse’s employees and the German government who held most of the shares.
No. If they would have been profitable , I seriously doubt that IBM would have let them go or at that price. Novell SUSE branch would have made a profit too.
You’ve got this rather twisted. IBM did not sell Suse in any way, nor did Suse need to get sold. Novell needed them more than Suse needed Novell. Netware was, and is, dying. That’s why. If anything Suse’s price was slightly over the odds for the size of company.
They were profitable, and had every chance of being more so, free from the political crap that goes on at Novell.
Suse is a 1992 company , in 2004 they where a 12 years old company , they are older then Red Hat.
Suse never started out as a Linux company. As a US company Red Hat got to the market first as well.
Novell dont bleed money they make more money then what they spend. They got money in the bank too.
You really are f*****g joking! Your credibility is out of the window there mate. Novell’s fixed costs are absolutely astronomical considering the revenue they bring in. They are living off that cash pile, which was not built up through sales incidentally. That’s the problem.
They still believe they’re this 80s and 90s network OS company with billions in revenue, and they’re not.
You tell me :
Open SuSe
Yast GPL
etc …
So ???????
So? What are they when they’re at home? The parts of the business Novell have to change in relation to open source software and demand are the proprietary parts like Groupwise, eDirectory and to a lesser extent Zenworks. The above software means absolutely nothing to Novell, and they’re the meaningless things Novell can open source because they don’t encroach on the turf of their other software. Novell need to confront that to survive.
No , but its declining and beeing phased out.
Right…….
http://gwadvisor.com/