The almighty $1 billion has lost its open source value | Linux Today

The almighty $1 billion has lost its open source value

Written By
Web Webster
Web Webster
Mar 6, 2014

For years, $1 billion was the goal for open-source companies. Back in 2006, RedMonk analyst Stephen O’Grady suggested that it wasn’t necessarily the ultimate goal, but he also pondered whether open-source economics could measure up to $1 billion. Then, in 2012, Red Hat surpassed $1 billion in annual revenue, and as an industry, we largely gave up the goal of there ever being another.

In fact, former XenSource CEO Peter Levine argued that there will never be another $1 billion Red Hat (echoing my thoughts back in 2011). It’s not that companies using open source won’t make a lot of money, but they won’t make $1 billion selling support.

Web Webster

Web Webster

Web Webster has more than 20 years of writing and editorial experience in the tech sector. He’s written and edited news, demand generation, user-focused, and thought leadership content for business software solutions, consumer tech, and Linux Today, he edits and writes for a portfolio of tech industry news and analysis websites including webopedia.com, and DatabaseJournal.com.

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