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NewsForge: Open for business? Companies really can make money in Open Source

Dec 06, 2000, 16:07 (0 Talkback[s])
(Other stories by Jack Bryar)

"Geez, can't anyone make money in Open Source? When enthusiasts like LinuxWorld's Nick Petreley begin to wonder, then you know there's trouble ahead. But people are making money in Open Source, investors are still wild about some Open Source companies, and Open Source is winning some big markets."

"While the best-known U.S. stocks are tanking, investment companies are circling around competent system integration and consulting houses with solid Linux and Open Source credentials. One case in point; every year, the Wall Street Journal polls European venture funds to ask which firms they wish they had invested in (but didn't). Scoring near the top of the "Envy Poll" was a French software consulting house called IdealX. The reason that VCs wish they had invested in IdealX? The company's Open Source expertise. Is that expertise all that much better than the expertise possessed by many readers? Probably not, but it's a model that investors want."

"Contract development houses, and software consultancies, are going to make money in the Open Source marketplace. So are network security firms that have used Linux to create nearly crash-proof firewalls and Web security systems. Firms like Axent Technology made a profit this year. But there are several other markets where the Open Source development model is going to truly change everything. For example ..."

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