Feeds

MySQL chief: being open source is not enough

Scandinavian, socialist, party people

Secure remote control for conventional and virtual desktops

Open source startups can hit profitability sooner than it took closed source incumbents, as long as they steer clear of rivals' costly business practices.

That's according to MySQL chief executive Marten Mickos, who told vendors and venture capitalists open source companies could cut their costs by not ploughing money into expensive sales and marketing activities.

However, start-ups shouldn't expect a fast track to growth just because they have adopted open source code or development methodologies.

"Maybe we [MySQL] come from Scandinavia, but open source is not socialism, it's not a party. Open source is not a business model. Open source is a smarter way to produce the goods and distribute the goods. It doesn't give you a biz model automatically," Mickos said.

Speaking at this week's Open Source Business Conference (OSBC), Mickos picked what he believes are the four most promising business models: advertising, licensing your product with a closed-source product using and OEM model, maintenance, and charging for enterprise-class features.

"Maybe today you have to be bigger to become profitable, but maybe you will get there sooner as an open source company then a closed source company. Closed source companies spend enormous amounts of money on sales and marketing," Mikos said.

Industry pundits estimate the traditional enterprise vendor model sees 75 per cent of revenue ploughed straight back into sales and marketing.

"How much did Linux vendors spend promoting Linux compared to IBM on OS/2? How much is MySQL spending on marketing in the database sector – not much. There's a very strong benefit for open source companies and they have a chance to rise sooner on this profitability curve," Mickos said. ®

Security for virtualized datacentres

More from The Register

next story
Microsoft WINDOWS 10: Seven ATE Nine. Or Eight did really
Windows NEIN skipped, tech preview due out on Wednesday
Business is back, baby! Hasta la VISTA, Win 8... Oh, yeah, Windows 9
Forget touchscreen millennials, Microsoft goes for mouse crowd
Apple: SO sorry for the iOS 8.0.1 UPDATE BUNGLE HORROR
Apple kills 'upgrade'. Hey, Microsoft. You sure you want to be like these guys?
ARM gives Internet of Things a piece of its mind – the Cortex-M7
32-bit core packs some DSP for VIP IoT CPU LOL
Microsoft on the Threshold of a new name for Windows next week
Rebranded OS reportedly set to be flung open by Redmond
Lotus Notes inventor Ozzie invents app to talk to people on your phone
Imagine that. Startup floats with voice collab app for Win iPhone
'Google is NOT the gatekeeper to the web, as some claim'
Plus: 'Pretty sure iOS 8.0.2 will just turn the iPhone into a fax machine'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.