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BeOpen.com: The Profits Speak: Real World for Tech Startups

Jun 06, 2000, 16:28 (2 Talkback[s])
(Other stories by Sam Williams)

[ Thanks to BeOpen for this link. ]

"Less than six full months after the VA Linux IPO gorged on the largesse of an investment community just waking up to virtues of Open Source software, Linux companies are learning to tighten their belts in the face of an increasingly skeptical market."

"Call it investor backlash or a simple return to sanity after months of outrageous dotcom excess, but whatever you do, don't call it temporary. Among both Wall Street and Sand Hill investors, the new watchword when it comes to Linux is "profitability." Either companies have it or they better figure out a way to get it fast."

"... [TurboLinux CEO Paul] Thomas says being a Linux-related company still has its advantages. According to the International Data Corporation, Linux server shipments continue to register triple digit growth rates, jumping 166 percent between the fourth quarter of 1998 and the fourth quarter in 1999. The trick, says Thomas and other CEOs, is to find a way to get revenue out of this growth without burning up your cash war chest on lower yield marketing efforts."

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