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Upside: Open source companies' ups and downs

Jun 10, 2000, 22:46 (0 Talkback[s])
(Other stories by Sam Williams)

"After nearly two years of legal wrangling, Wednesday's call for a Microsoft (MSFT) breakup came as a bit of an anticlimax. Still, Linux-related companies managed to reap some benefit, thanks in large part to encouraging financial news in other corners of the open source business sector."

"Considering that Corel has warned analysts not to expect a sales surge from its Linux distribution until the fourth quarter, Bagnall wondered if amputations weren't in order. "This could include the sale of its equity stake in affiliated companies such as Ottawa-based Rebel.com or Graphon Corp. of Campbell, Calif.," Bagnall wrote."

"With investors suddenly demanding a faster road to profitability, companies in the commodity Linux distribution and services market are hard pressed. Fortunately for Collab.net, the company has built up a unique niche, intermediary development services, that affords multiple revenue streams. The company's flagship service is SourceXchange, a reverse auction website where companies can post a list of desired software projects and open source development teams can bid for the work. The company also has initiated project hosting and consulting services within the last 12 months, helping firms such as Hewlett-Packard court open source developers to work on proprietary projects such as eSpeak."

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