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Bonus Interview: VA Linux CEO Larry Augustin
We all heard about the extraordinarily successful VA Linux Systems IPO.
And, of course, there was an SEC-mandated "quiet period" after that IPO during which VA executives and employees could hardly open their mouths. That quiet period is over. This is one of the first "post-IPO" interviews anywhere with CEO Larry M. Augustin and Linux Evangelist (his official title) Chris DiBona. Ask away!
well i have to ask a question in a second area. with the mac moving into a bsd base, will the ability of applications to be ported to linux expand the workstation market for video, 3d, and graphics applications?
I was fortunate enough to be a part of the VA Linux Friends and Family IPO. However, I have a quandary:
I do not have a single line of code in any Linux distribution, HOWTO document, or any other software project that runs on Linux.
On the other hand, I do contribute to the Litestep project, which is sort of a "Window Manager" for Microsoft Windows.
I guess my question is "Why was I chosen?" I know you would not have a specific reason for this, but it would seem that while I am contributing to a project that benefits Windows, I didn't deserve to be a part of the VA Linux IPO, even if I am contributing to an Open Source project.
You should never take life too seriously - You'll never get out of it alive.
I suspect that volume is what's holding up introduction of new case designs. Their stuff is already overpriced without havng to pay twice the price to a sheetmetal basher for the same style case as their competitors buy off-the-shelf.
-E
Send mail here if you want to reach me.
-E
Send mail here if you want to reach me.
Alright Chris, How much wood, would a wood chuck chuck, if a wood chuck could chuck wood?
Can you comment on possibilities for developments relating to transaction processing and database management systems?
"For instances" to make this clearer include:
- RHAT has apparently been putting work into the availability of raw partitions that the major DBMS vendors prefer to the use of native filesystems.
- TP monitors such as BEA Tuxedo as well as message queueing systems such as IBM MQSeries.
There would be considerable merit to establishing tools like this as options for the construction of "back office" applications, particularly providing alternatives to MSMQ/MTS.Ala SCT-RAW , raw i/o patches
There's one "libre" option, Isect
If you're not part of the solution, you're part of the precipitate.
It seems your company has a lot on its plate. Beginning as "just" a hardware company, you've now grown into one of the largest Linux-oriented businesses around. Hiring such high-profile indivduals as Carsten "Raster" Haitzler, Geoff "Mandrake" Harrison, and Trae "OctobrX" McCombs, acquiring the Linux.com domain, as well as getting behind the Debian distribution. I'm sure you have much more than this going on that I'm not even aware of.
My question: Where do you see the company focusing its efforts in the future? Can you be as elaborate as possible in your answer? Thank you.
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"Great spirits have always encountered violent opposition from mediocre minds." - Albert Einstein
Co-founder and designer at Music Nearby: http://musicnearby.com
And, how (did?) this change with the IPO and the responsibility to the stockholders?
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How do you keep an idiot in suspense?
Tell him the next version of Windows will be faster, more reliable, and easier to use!
Care about electronic freedom? Consider donating to the EFF!
On your interview with Charlie Rose a week ago, you mentioned that, even though your paper net worth is in the billions, you still live in a modest house and drive a 9 year old Explorer. With its record-setting IPO, certainly all your neighbors must know about yours & VA's success. Do they act differently knowing they live next to a billionaire? Is it wierd to know that one day you'll be living the typical middle-class suburban life, and literally the next (presumably the day the 6 month SEC limit is up) you'll move into whatever house you want and buy whatever and as many cars as you want? What is the anticipation like?
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I think there is a world market for maybe five personal web logs.
I can answer the second part. Augustin was interviewed on Charlie Rose a week ago and said that VA had no plans to make embedded appliances, although he made bones about the fact that Linux could do it, and do it better than anything MS could produce. The thinking behind this rationale was that for every embedded device there needs to be a backroom server to run it, which VA will supply. It makes a lot of sense - why bother spending millions on R&D for some set top appliance when there is a viable market for their product.
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I think there is a world market for maybe five personal web logs.
Are you going to invest massively in such tracks, do you think they are merely wishful thinking, are you in a wait-and-see mode, or do you just feel unconcerned? If you think such concerns, if possibly valid, are too long-term to you, what kind of financial infrastructure do you consider appropriate for research on such topics? How do you envision the relationship between free software companies and computer science research centers?
-- Faré @ TUNES.org
-- Faré @ TUNES.org
Reflection & Cybernet
Year and a half ago I bought a dual processor screamer with lots of extra goodies, and figured I was paying more for it. But several months later, I saw a Compaq box, similar set of goodies, for $500 more. Surprised me, but didn't upset me :-)
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Infuriate left and right
about sourceforge, why?
I can only answer the sourceforge question as I work on it daily.
SourceForge will continue to be supported. We have no plans whatsoever of allowing it to disappear. As for what happens to SourceForge should VA have problems ? No clue other than this: VA has always tried to do whats right for the community and will continue to do so. If something should happen to VA and they can no longer continue to provide support for SourceForge, I for one will be pushing hard to release it back to the community in it's existing state and let the community run it through some type of Advisory board.
But thats just my 0.02
I saw a recent interview where you were asked whether you envisioned yourself as Rockefeller or Edison (since Gates was described as more like Rockefeller in an earlier interview). You chose Edison. While I'm a big fan of VA, it would seem to me that you are more a business man than an innovator, employing the Edisons of programming. Would you care to support your interpretation of the response?
-Chris
Does VA Linux Systems have any plans to sell systems with "cool cases"?
Also, does VA have any plans to produce a Linux based "WebPC" like the one anounced by Intel?
Opinionated Law Student Strikes Again!
Hey guys,
[a] whats your involvement going to be in the CSS cracking case ? And why are you involved anyway ? (granted that its something i'm relieved about -- a coupla billion dollar ipos v/s DVD consortium is a good thing)
[b] And do you plan to continue sourceforge indefinitely ? i.e. do you plan to set up a trust fund for it or something that will ensure it sstays afloat even if something happens to VA ?
I seem to recall from the Atlanta Linux Showcase that VA plans to patent their system for BIOS-level administration of Linux clusters --a hardware/software solution, with the software being GPL'ed IIRC.
This is my spotty recollection, but I cann't think of any other field where a hardware OEM like VA *can* innovate anyways...
engineers never lie; we just approximate the truth.
First as a nerd, with a crush on open source, and a healthy appetite for money, I have to say you guys are my heroes. :)
Having said that, what is your design philosophy? Since youre name is VA Linux, one could expect you do not fabrice systems with MS HCL's in hand, on the other side, would you support installation of, for example, HURD?
And on a side note... any plans for a Amsterdam branch?
Greetz SlashDread
I've yet to see a decently priced system for those of us who are gamers (lowest priced "gaming" system being around $2000). Any chance you'll have such a system in the near future?
"I have great faith in fools: Self confidence my friends call it." ~Edgar Allan Poe
I got the feeling he was saying that the public won't WANT Linux for their desktop. So far, this appears to be largely true.
If that's the case, then it's clear that LA got a PhD in EE rather than an MBA in Marketing. The whole point of marketing is to educate the public that they do indeed want a product. Not that I want to see Linux rammed down our throats like some other operating systems I could name, but if you don't spend some bucks educating the public on the benefits of the OS, then why bother to raise funds through an IPO?
On a related note, Bob Young said in an NPR interview today that consumers don't select OS's, they simply get the OS that their preferred applications run on. This is an interesting argument, considering any Linux application will/should work on any Linux distribution (and most on BSD, or other Unixes as well). Based on his model, there would never be a reason to purchase a given distribution other than cost, which would have to be $0, or maybe $2 if want a pre-burned CD.
Work for Change & GET PAID!
What the hell does he do for your company that he's rewarded with $43 million worth of stock. I know he's an Open Source evangelist, but $43 million ?!?!
Hates people who have stupid little sigs
What is VA's stance on the future of network computing, especially in the home? I've ranted on several occasions to friends and business partners that current technologies on Linux make it very possible to run a home PC as an application server with ultra-cheap X terminals in, for example, the kitchen, on the TV and in the bedroom. Is this the type of future work VA will consider?
- Michael T. Babcock (Yes, I blog)
VA has so far been involved with classic motherboard-based platforms (even the rack-mountables) oriented towards business applications.
What is your position on telco-grade platforms based on hot-swappable compact PCI boards and chassis, NEBS, high-availability, N+1 redundant AC-DC (-48 Volts) power supplies etc...?
I'm curious why VA chooses to go with intel processors as opposed to AMD. I don't want to come off as an anti-intel psycho, but I think most of the people in the linux community prefer AMD (Athlon) over Intel (PIII) if not just because of sheer superiority, because of Intel's 'evil ways' (FUD + ID# to be exact). The reason I didn't buy one of your systems for my brother for Christmas is simply because you don't carry athlon models. I don't know what other people think, but if that is a common occurence, you could be losing business... and that is bad. :)
In light of all of the recent 'linux support' lip servicing IBM has been doing. Do you see them as a threat?
Death: It Sure Ain't What It Used To Be.
Over the last couple of years, we've seen a parade of technologies trotted out as a sign of the death of the PC--everything from the Network Computer to "Web Everywhere" style initiatives.
But the PC hasn't gone anywhere. Alot of this can probably be attributed to its flexibility in adjusting to changing market demands, for example, the emasculation of per system cost(the former NC trump card).
Thus my question: PCs can change rather drastically over very little time; that much is clear. What form do you see the coming changes taking, and what effects do you see from these changes upon both Linux and the Computer Industry tendancy to go into Death Watch Hypefests over the future of the PC?
Yours Truly,
Dan Kaminsky
DoxPara Research
http://www.doxpara.com
I see hardware compatibility issues to be one of the primary hindrances to people wanting to try Linux. People don't understand why it "just works" under Windows, but often takes tweaking and elaborate configuration to get it to work under Linux, if it works at all. I realize that VA Linux Systems sells top-notch hardware that works like a dream with Linux. However, is there any work being done at VA Linux Systems to improve GNU/Linux's support of hardware?
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Celebrate the finer things in life
I've noticed that your computers use Intel's chips and motherboards exclusively. With other Intel-based server vendors joining the Linux fray (Compaq, IBM, etc.), some of whom design their own motherboards that incorporate high-availability features (like IBM's Chipkill technology on their increasingly Linux-compatible Netfinity servers), are you relying upon your Linux expertise and customer service as key differentiators?
Or are you going to invest more in hardware R&D or possibly source hardware which would allow for higher-availability single-server solutions?
---- Politics: Kissing ass and pointing blames.
This is a couple of questions all relating to one:
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1) what happened to the laptops? You all had them for sale, then stopped. I may have missed the reason, but could you restate the reason that you stopped selling laptops?
2) are you going to sell them again? If so, when? If not, why?
As a side note, (IMHO) I think that it would be a very good idea to start selling them again. From a business standpoint, if you can get IT managers more mobile without the hassle of setting up often incompatible laptop h/w on a schweet Linux laptop, there would be a lot of happy geeks out there, myself included.
Also, thanks for helping out the community.
eric
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Please give your mod points to others, Im at the cap. They will appreciate it more
I'm wondering when the turning point came when people started to believe that Linux could make money. What was your first exposure to it, and what made you decide to pursue it for profit?
Were there any other "execs" you may have butted heads with along the way who have "signed on" now that things have changed?
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Just lurking, thanks!
A long time ago, in a college dorm room far, far away, you (Mr. Augustin) helped Yahoo!'s two founders (I forget their names) draft their business plans. The legend goes that you were offered a lucrative job opportunity and/or stock options. However, you refused to join them to build your own business.
What made you really believe that being a Linux systems retailer would make it big? Also, was it ever a contest to see who could be worth more money? In that case, who is worth more money? You, or the founders of Yahoo!?
You should never take life too seriously - You'll never get out of it alive.
I'm curious whether or not the higher-ups at VA Linux think it's possible to develop the company enough to be worth its stratospheric valuation.
Obviously, a high valuation is partially a self-fulfilling prophecy, because it gives that company the ability to buy others with its high-priced stock. But I would be interested in any other strategies Mr. Augustin has in mind to develop VA Linux into the enormously valuable company the stock price suggests, and how it will affect its relationship with the Open Source world.
I suspect that creating vast companies like Microsoft, based on Linux, is simply impossible. An enormous service-based organization might be possible, but it seems to me that it would take many years to build one. The GPL is designed to prevent the monopoly, hardball shenanigans that Microsoft pulls. Can building hardware and providing expertise instead generate enough revenue?
A while ago VA Linux Systems (then called VA Research) used to offer Alpha systems. But soon after Intel's investment in VA, the Alpha systems disappeared. Last I checked AMD systems were not offered either (and don't tell me there is no demand for either Alpha or AMD). Intel is the *only* choice.
My question is: being a Linux company, will you continue to offer people a choice or will you, like Dell, become a slave to Intel?
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If you think big enough, you'll never have to do it.
--
Dave Aiello
-- Dave Aiello
Are there any plans to open any locations in the USA, or preferably(for me anyways, considering I live in Canada and it'd be nice to have the ability to buy those kick ass computers locally ;) in Canada? I heard some mumblings that there was a location in Toronto, but I can't seem to find any mention of it. The only problems with this is dealing with the issues of being an internation company at such a young stage, but I'm sure its something that can be easily overcome by multi-billion dollar company =) Also, are there any plans to sponsor events internationally?
---------- Real roxen error message: Error: The server failed to fulfill your query, due to an internal error in the i
I remember reading something in your IPO filing about competition from other computer makers. One of the concerns was about what will happen when the traditional "big boys" (Dell, Compaq, HP, etc...) start making linux boxes. As others have mentioned, VA boxes tend to be a little pricey. How do you plan on competing once other people start selling the same Intel-based servers that you sell, for 20% less? Will you have to build a new market for Linux systems (much like you built the original market), or will you be able to take them on straight-up?
Juiced? Or Not?
While VA Linux's and Redhat's core business (hardware and distributions) may not be in competition, it seems that both companies are moving aggressivly into the online information/commerce market with sites like Linux.com & Redhat.com.
Do you worry that competition between sites like these (and Andover & LinuxCare etc) might run against the co-operation that has been Linux's strength?
Do you see a time in the future where you find yourself in a position where your companies interests and those of the general Linux community (and other Linux companies) don't match? How will you deal with that problem, bearing in mind you have a duty to your shareholders?
With the big computer companies such as Compaq embracing Linux, what is it that differentiates VA Linux Systems? Why should a company buy one of your boxes instead of one of theirs?
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Disinfect the GNU General Public Virus!
During your Charlie Rose interview last week you seemed to discount the readiness of Linux for the desktop. Don't you think that what Corel and others have done recently has shown that Linux will be ready for the desktop by this summer (once kernel 2.4 and Xfree86 4.0 have been released and fully vetted of bugs), if not sooner?
I see a great oppotunity for Linux to establish itself as companies are deciding whether to transition to Win2K or Linux for their servers. One factor in their decision is that MS is marketing Win2k as an OS for both desktops and servers. I think the Linux community has to be prepared to argue it is just as ready for both platforms.
Work for Change & GET PAID!
I realize you will not want to disclose the details of your pending patent application, but I am interested in knowing whether or not it is a software patent. And, what VA's policy towards software patents is, in general. Will VA apply for software patents? If so, how will they be licensed? Will they be made available on free software terms to free software developers?
As a Linux systems retailer, you're in the unique position of actually being able to foster development of the operating system that you sell with your systems.
What areas of Linux do you see as needing the most attention? As a company, what would be the best change(s)/addition(s) to Linux and/or it's distributions to help you market your systems?
Much like most net-related IPOs, VA's valuation is impressively high. Much higher than bigger and older companies which have proven to be able to actually MAKE money. So let's assume that this valuation actually means something. How do you see VA Linux fulfilling this promise, IOW, what will it be like when it will sell as much as its stock price mean? Will it compete directly with Compaq and the likes on the server market?
On a related note: VA Linux is currently mostly in the Linux server and workstation market. Are you considering expanding towards other devices, like special purpose appliances?
And last BUT NOT LEAST. There's a few reasons why I'm not going to buy a VA Linux box NOW. Well first of all I live in Europe and I don't think you do sell here. And then ... YOUR CASES ARE UGLY! :) Not that it's THAT important, but that's one of the reasons why I've always dreamt of an SGI workstation ... So are you going to hire a designer anytime soon?
What I have always been wondering about when watching all the little companies (and the not-so-little companies) that build and support Linux as an OS is when we will see Linux commercials on big-time commercial TV.
Some CEOs of Linux-related companies have said that their goal right now is to "grow the Linux market" rather than competition with the other vendors. The main competition would be Microsoft rather than each other.
However, Microsoft has a massive marketing machine at its disposal. The Linux vendors dont have nearly its marketing muscle. Are there any plans for a joint marketing effort to counter that?
--- Your superiour intellect is no match for our puny weapons
Two questions:
1) Every time I need to buy a computer (for self or business) I check out VA Linux Systems. But your prices are always $500-$1000 higher than even the Microsof-tax laden goods from someone like Gateway or Dell. Is this all due to volume discounts or is there something else at work?
2) When will VA Linux be selling laptops?
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Linux MAPI Server!
http://www.openone.com/software/MailOne/
(Exchange Migration HOWTO coming soon)
I know how you choose the people you picked as friends and family (being one of them), but were there any specific HOW-TOS you looked through? Did you weight projects? Is there a place where you've amassed this information for people to look at?
.sig: File not found.
I was quite surprised myself at being picked, as several other people who I felt have contributed more than me weren't.
Jezzball (Jobe)
ls:
ls:
(A)bort, (R)etry, (I)gnore?
Specifically, the new PowerPC motherboards that some companies are planning to build...is VA planning any systems around these boards, or do you see a market for platforms other than i386 in your company's future?
I use Macs for work, Linux for education, and Windows for cardplaying.
Now that the IPO period is over, what directions do you see VA Linux moving in? Are there projects that have been placed on the back burner until the IPO could 'make it possible'? If not, have projects been untertaken, or put into the planning stages, that wouldn't have been if the IPO hadn't taken place? Or is this just a calculated business move, with no plans beyond simple, steady growth as a company behind it?
Unless, of course, scissors can't cut rock...
I've been watching with keen interest both Linux and the open source movement with great interest for the past few years. Now with anything Linux being the darling of Wall Street, it would seem all one has to do is mention Linux and watch the rush of money.
My question is this:
How do you, personally, view your fellow Linux distributors? Do you see them as competition to be toppled? Or do you view them as competitors in a worthwhile cause?
GIHM -The light at the end of the tunnel is only the oncoming train.