Feeds

MySQL chief: being open source is not enough

Scandinavian, socialist, party people

Build a business case: developing custom apps

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. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Captain Kirk sets phaser to SLAUGHTER after trying new Facebook app
William Shatner less-than-impressed by Zuck's celebrity-only app
Do YOU work at Microsoft? Um. Are you SURE about that?
Nokia and marketing types first to get the bullet, says report
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Chrome browser has been DRAINING PC batteries for YEARS
Google is only now fixing ancient, energy-sapping bug
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.