|By Christopher Keene||
|December 4, 2012 07:45 AM EST||
It is amazing how many open source software companies out there are trying to get hit by the same $1B bolt of lightning that hit MySQL without realizing that the MySQL result is not repeatable.
Looking at the current batch of big data high flyers, from TenGen to Cloudera to Hortonworks, each seems to be vying for the same kind of ubiquitous usage that enabled MySQL to get a more than 20x multiple. What they don't realize is that the failure of early open source acquisitions to deliver substantial value to owners has made buyers much more wary.
Companies like MySQL were valued based on a mystical belief that downloads could be monitized (not unlike the similarly wishful belief in monetizing eyeballs that motivated disastrous dot com acquisitions in the 90s). Moving forward, open source companies will be valued the old-fashioned way: by the viability of their business model.
Here are the top three places most big data open source companies are missing the boat:
- Prioritizing business model behind buzz: although buzz is critical for adoption growth, a viable business model trumps all in positioning a company for IPO or acquisition. First and foremost, this means being able to charge significant prices for add-on product pieces that customers want, such as security, clustering and monitoring.
- Confusing services with sales: low margin services revenues are no substitute for high quality license revenues. More importantly, companies that build up large services teams often neglect to fully integrate their product, as product integration provides a driver for services engagement. This lack of product maturity in turn prevents customers from being willing to pay much for the product itself - a classic vicious cycle.
- Hoping for a desperate buyer: companies that purchased open source players have by and large to translate open source leadership into commercial market share. The open source downloads generate lots of buzz but little license revenue, saddling their owners with an expensive, services-led business. In the immortal words of Mitt Romney, hope is not a strategy (although it *did* turn out to be an ok strategy for the incumbent in that case).
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Jun. 27, 2016 08:30 PM EDT Reads: 324
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
Jun. 27, 2016 08:45 AM EDT Reads: 1,028
Gartner is now treating algorithms like they are some kind of innovative addition to the modern digital discussion. Presumably the brilliant minds there have some novel insight into algorithms and, yes, the Algorithm Economy that CIOs should sit up and take notice of. Not only are algorithms nothing new, but much of what Gartner is saying about them is obvious. The bigger picture here is that software continues to improve, and enterprises are becoming increasingly software-driven, in part bec...
Jun. 17, 2016 04:07 PM EDT Reads: 819
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Jun. 12, 2016 09:00 PM EDT Reads: 5,190
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Jun. 12, 2016 02:45 AM EDT Reads: 3,744
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Jun. 8, 2016 10:30 PM EDT Reads: 4,629
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Jun. 8, 2016 06:45 PM EDT Reads: 4,162
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Jun. 8, 2016 03:45 PM EDT Reads: 3,300
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Jun. 8, 2016 03:00 PM EDT Reads: 3,275
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
Jun. 8, 2016 01:00 PM EDT Reads: 4,454
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2016' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 7-9, 2016, at the Javits Center in New York City, New York. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the g...
Jun. 8, 2016 11:00 AM EDT Reads: 3,730
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
Jun. 8, 2016 10:00 AM EDT Reads: 2,632
SYS-CON Events announced today that Addteq will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products a...
Jun. 8, 2016 09:45 AM EDT Reads: 2,602
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
Jun. 8, 2016 02:15 AM EDT Reads: 3,668
SYS-CON Events announced today that FalconStor Software® Inc., a 15-year innovator of software-defined storage solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. FalconStor Software®, Inc. (NASDAQ: FALC) is a leading software-defined storage company offering a converged, hardware-agnostic, software-defined storage and data services platform. Its flagship solution FreeStor®, utilizes a horizonta...
Jun. 7, 2016 07:00 PM EDT Reads: 4,273
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Jun. 7, 2016 04:30 PM EDT Reads: 5,997
SYS-CON Events announced today that Column Technologies will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principal...
Jun. 7, 2016 04:15 PM EDT Reads: 3,413
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Jun. 7, 2016 01:00 PM EDT Reads: 2,819
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Jun. 7, 2016 12:30 PM EDT Reads: 2,829
SYS-CON Events announced today that Anexia will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Anexia offers high-quality customized managed hosting solutions for SaaS and IaaS companies. The company was founded in 2006 in Klagenfurt, Austria. Today, it has additional offices in Vienna, Graz, Munich, Cologne and New York City to serve numerous international customers.
Jun. 7, 2016 11:00 AM EDT Reads: 2,964