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MandrakeSoft Files for Bankruptcy Protection

An anonymous reader writes "It's official: MandrakeSoft has filed a 'declaration de cessation des paiements' - the French equivalent of a U.S. Chapter 11 bankruptcy filing. From a statement issued by the company: 'This reorganization of liabilities enables MandrakeSoft to continue its current operations, which are showing increases in revenue and significant decreases in expenses. MandrakeSoft's strategic partners are supporting the company in this process and the MandrakeSoft team is focused on continuing to deliver high quality services and products to its customers.' Best wishes to MandrakeSoft as they work through this process."

16 of 379 comments (clear)

  1. Here is your chance! by Maeryk · · Score: 5, Insightful

    If Mandrake dies a horrible and ugly death, it will not just be one more dead distro, it will be proof to all the closed source liscensing junkie corps. that "free" (as in beer) software cannot survive.

    Now is the time to contribute to MandrakeSoft and help them out. If you have ever used it, if you use it now, if you have ever found it useful, now is the time to contribute.

    I run it, I have contributed. I even saved them the money by d/ling my copy from linuxiso.org and then sending them the money.

    But think for a moment, how much a license for Windows costs, and how little it costs to shoot five, or even one, dollar to Mandrake as a "thank you" if you use their software.

    "Free" is a misnomer.. nothing is "free".. but "user supported" is probably as close to "free" as we can get, with an important distinction between "user purchased" and "user supported".

    I would hate to see what is a rather good distro tank now, because of money woes.

    --
    Feminine Protection? What is that? A chartreuse flame thrower?
    1. Re:Here is your chance! by pubjames · · Score: 5, Insightful

      If Mandrake dies a horrible and ugly death, it will not just be one more dead distro, it will be proof to all the closed source liscensing junkie corps. that "free" (as in beer) software cannot survive.

      But doesn't it prove just the opposite? The company dies, but the software lives on. I expect that the vast majority of people who use Mandrake will have no problem moving their setup across to another distro. But imagine what would happen if a traditional, closed source company died. Then you'd be screwed.

    2. Re:Here is your chance! by Anonymous Coward · · Score: 4, Insightful

      First of all, consider the amount of debt you have to be in to file for Bankruptcy protection.

      Now, think of how many people run linux, and have the cash to donate.

      You will need a VERY SERIOUS movement to keep Mandrake alive. And by serious, I mean big enough to grab media attention. Then what are you telling commercial software companies? We can help our companies when they are down. But what happens when they go into debt again, then a third time...

      I love linux, don't get me wrong. And Linux isn't going to die, even if all the 'company distros' go out of business, but to think that you can save it to prove a point to proprietary software is, well, its a sad dream that will, most likely, not come to fruitation.

    3. Re:Here is your chance! by Maeryk · · Score: 5, Insightful

      But doesn't it prove just the opposite? The company dies, but the software lives on. I expect that the vast majority of people who use Mandrake will have no problem moving their setup across to another distro. But imagine what would happen if a traditional, closed source company died. Then you'd be screwed

      Not sure. I would think from the "us" level, yes, that would be true. Most of us can do that without too much trouble. But from the "them" (read: big business, small business, etc) perspective, no, its catastrophic.

      This is a pretty big name distro, at least in the eyes of Joe Buying Software Off The Shelf. He has seen it. If he is thinking of moving his small to mid-sized business to it, he wont if he sees this and realizes the company could tank on him at any time. We all know Microsoft Support is often less useful than the 17 year old next door when a problem crops up, however one of the major selling points is that _it is there._. If one of the "larger" (figuring RH, SuSE, Mandrake as "large presence" distros) tanks, then Joe Consumer will lose even more faith. What RedHats stock did after the IPO put a hurting on the reputation, because most of the people approving these things spend time looking for the enter key and watching stocks, not having a clue about software.

      Im not looking at this as much from a personal standpoint, as from a "company X is seriously thinking about moving to a cheap alternative to MS, which would be Linux.. what can I show them to point out a GOOD reason, with a solid company behind it."

      Maeryk

      --
      Feminine Protection? What is that? A chartreuse flame thrower?
  2. rumors by jbolden · · Score: 5, Insightful



    This is all rumors so please take it with a grain of salt.

    From what I understand during the dot-com boom Mandrake signed contracts regarding e-Education with many bankrupt / troubled dot-com companies. Mandrake has pulled out of those contracts and is now in the penalty phase. These companies want to collect their penalties from Mandrake and Mandrake cannot make the payments.

    Under French bankruptcy law these penalties would be voided and the remaining company (the company that sells a Linux distribution) would be viable. So by threatening bankruptcy all they really mean is walking away from their e-Education related debts. This may or may not be a tactic to get the e-Education creditors to be willing to take 10 cents on the dollar rather than the nothing they would get under a bankruptcy.

    In any case a bankrupt Mandrake my not mean the end of the Mandrake distribution.

    Just to throw in a person note I hope its not the end. Mandrake has a great niche as the desktop distribution for the computer power-user who is not necc. all that knowledgeable about Linux. That's very different from the current crop of easy desktop distributions which are much more power limiting and very different than the server / corporate based distributions. I think its an import niche and one that gets filled regardless of what happens to Mandrake.

  3. Optimism. This is a good thing. by SenatorTreason · · Score: 4, Insightful

    I use Mandrake Linux on my laptop, and am very happy with 9.0. They have a good,solid product, and I think that ultimately this is a good thing. A rebirth of sorts. They made some very poor business decisions early on, but they are on a better track. Unfortunately, this better track could not make up for the past decisions financially quick enough. So they file for bankruptcy, reorganize, refocus on their key advantages, and come back out swinging. Look for a K.O. in a couple of months when come out of their financial corner. Good luck, Mandrake.

  4. Re:Here is your chance! GET A CLUE by Anonymous Coward · · Score: 5, Insightful

    This has nothing to do with free software, it has everything to do with mis-management and not knowing how to run a software company.

    Get real, if they can't run a business then they should fail, it has nothing to do with Linux or free software.

  5. Sad to See by TheWanderingHermit · · Score: 5, Insightful

    It's not only sad to see Mandrake having to declare bankruptcy, but it is also sad to see some of the nasty comments that have already been posted.

    At my LUG, whenever a newbie asks, "What distro should I install?" A bunch of techies respond, "Debian." To which I now point out (after having spent over a week trying to get Debian Woody to work with my ATI Radeon) that newbies have no idea how to handle the module config and that I've had a post on the local LUG board for almost a month now and NOT ONE Debian fan there has been able to tell me how to get Woody to support a common video card (I did get it working - that is not the point -- the point is that it wasn't supported.)

    At this LUG, Mandrake has become a dirty word. I've noticed, overall, that programmers (and I used to be one -- used to program a LOT in Assembler on my Apple //e AND made money at it!) and techies tend to hate Mandrake. I cannot see why. They may not want it, but it seems to me the more technically oriented a person is, the more disdain they show on those who are not "as smart" as they are in that particular field. I think this shows a fundamental lack of understanding that comptuers are made for people, not people for computers.

    If computers and all OS's stayed as difficult to set up as Debian or Slackware, there would not be many computers in offices or homes. As much as I hate M$, Windows is easy enough for even my 80 year old mother to use. That ease of use is a large factor responsible for the omni-presence of computers.

    Mandrake has brought Linux to thousands, probably tens of thousands (or millions, for all I know) of users and computers. This is the distro that dared to explore the desktop years before Redhat introduced Bluecurve. This is the distro that is easy enough to use that it is pre-installed on computers at Wal-Mart. While those of use who think we know better act like snobs and talk with disdain over any distro that does not play by our rules, Mandrake has done a better job of any distro (except maybe Lindows) at spreading Linux aroudn the world and making it more popular among people other than programmers and techies.

    If you want to talk ugly about Mandrake, go on. It just shows an elitist side that does not realize that without users, programming is just writing utilities and tools so we can write more utilities and tools. In short, without users who need easy to use distros, all we're left with is writing code and making systems for ourselvs. I don't know about you, but to me that is a bit much like masteurbation.

    I hope Mandrake pulls out of this.

    I also hope those who keep ragging on Mandrake take a step back and realize if it weren't for the easy to use desktops, computers would not be popular, would cost MUCH more, and far fewer of use would have jobs in computers (and these jobs are getting rare enough already).

    1. Re:Sad to See by Angst+Badger · · Score: 5, Insightful

      At my LUG, whenever a newbie asks, "What distro should I install?" A bunch of techies respond, "Debian."

      Sad. My first year with Linux was a matter of endless frustration. It was only because I desperately wanted to get off the Microsoft treadmill that I stuck with it. I'm glad I did, because I love Linux, and the process of clawing my way to competence taught me a lot. (And made me a lot of money, since I went from selling furniture to being a sysadmin over the intervening eight years. Not everyone wants or needs to be a sysadmin, however.

      I tried installing Debian recently. Frankly, I was appalled at how primitive it was and how many common packages (including some I depend on) were not included because they were not "free" enough. I would recommend Debian to someone who likes tinkering with their OS, just as I would (perhaps more strongly) recommend Slackware or the highly educational Linux From Scratch. I wouldn't recommend any of the above to a newbie unless I hated their guts and wanted them to stick to Windows.

      Mandrake is quick and painless for inexperienced users and, in my experience, autoconfigures more hardware than any other distribution. Nor would I say it's just for newbies -- the experienced desktop user shouldn't have to manually configure anything unless the defaults don't suit him or her. Ever. It's just plain asinine to suggest that there is some kind of moral virtue in using unprofessionally packaged software.

      Mandrake is also nice for certain server applications. Their Advanced Extranet Server project bundles pretty much every commonly conceivable Apache-related package in a series of modular RPMs. (Yes, I can compile it myself, but I get paid for producing results, not my hard-won understanding of the poorly documented and often poorly designed dependencies between the necessary packages.) Mandrake's install disk functionality means I can do one install and have some newbie intern roll out dozens of machines for the web server farm without a hitch and without working out the networking issues in advance.

      Easy is only bad when it comes at the expense of power and flexibility, a la Microsoft. Mandrake delivers the full power of a feature-packed Linux distribution and manages to make it easy to use as well. I hope Mandrake manages to come through their current difficulties for the simple reason that they make good product that actually helps people get real work done, and they are to be commended for doing a much better job than the other commercial distributions which have had much larger resources to draw from.

      --
      Proud member of the Weirdo-American community.
  6. Unrealistic Reasoning by Skyshadow · · Score: 5, Insightful
    MandrakeSoft is a business. When it became fashionable to start shilling for "contributions" or "donations" to businesses, I'll never know, but it's a stupid, unrealistic idea which needs to be killed and buried in the unmarked grave it so richly deserves.

    For-Profit businesses exist for one reason and one reason only: to make money. If they cannot do this, it's their own fault -- especially if they are expecting people to whom they give away their product to send in "contributions", as you call it.

    MandrakeSoft is going the way of the dodo because they haven't successfully created a way to make money. End of story. God willing, they'll be replaced by a business which can do so, but don't expect me to send my hard-earned bucks to save 'em.

    --
    Every year during my review, I just pray the words "slashdot.org" aren't mentioned.
    1. Re:Unrealistic Reasoning by Blimey85 · · Score: 4, Insightful
      Actually, if I understood everything that I read on their site, they aren't losing money on the distro. They lost money (lots of it) when they had problems with idiocy in management. They have since gotten rid of those people and have tried to turn the ship around. I think at this point the ship has already reached the rocks and water is rushing in to the hull but whether or not the ship sinks is yet to be seen.

      I like Mandrake. I've used it for several years and it has just finally gotten to a point where I don't have any problems with it... or maybe my knowldege about Linux in general has matured to the point that I can take care of problems as soon as they arise... either way, as time goes on, Mandrake keeps getting better. I would hate to see it fail after so much time and energy has gone into such a wonderful project/product.

      They have a lot of good people working there and a lot of good ideas, but like anyone else, they need to be able to eat and pay their bills at the end of the day and they may end up having to find other jobs or other ways to keep their company going in these tough times.

      --
      How is it that one careless match can start a forest fire, but it takes a whole box to start a campfire?
    2. Re:Unrealistic Reasoning by Eric+Damron · · Score: 4, Insightful

      You rant on about how Mandrake fails to live up to the traditional business model. Let me give you a hint: Free software is not a traditional business model and, in fact, the correct model if there is one had not been fully defined.

      Mandrake puts out a good product and God forbid that they should ask for donations! Oh horror! The assumtion is that people who contribute use mandrake so it's not really wealfare!

      --
      The race isn't always to the swift... but that's the way to bet!
  7. Re:And all I can say is good riddance by TheWanderingHermit · · Score: 5, Insightful

    I have to admit I don't understand this post. I figure it is either a troll, or someone is just venting his/her anger.

    Obviously this is a person who knows something about OSS, since he's complaining about what Mandrake did to SYSLINUX, but his last statement: how was MandrakeSoft expecting to make money? Anyone? Anyone? seems to be a clear declaration that he does not understand the open source business model.

    People may not like Mandrake -- I've noticed the more someone pisses and moans about Mandrake, the more technically oriented they are. It's a generalization, but it's something I've noticed.

    While most of use doing development work realize that without users who need easy-to-use UI's, we would not have jobs, it seems that there are always those who are willing to go on a rampage and complain about anybody or any company that tries to make Linux easier to use.

    While you may not like what Mandrake has done in their distro, I dare say they've introduced more people to Linux and have created more happy Linux users than you have.

    Personally, I think the more users that are on Linux, the more opportunities there are for those of use doing development work to sell our Linux products. I know some people feel the opposite, and want to keep everything pure and clean and pristine -- all technical, all perfect -- just a haven for techies. We can do that, but if we do, it means VERY few jobs for Linux developers.

    Without the users that need easy-to-use systems like Mandrake, (whether they use Linux or Windows or Mac or anything else), there would be far fewer jobs for developers, since computers would remain in the hands of the technically elite.

    If you don't like it, don't use it. If you hate it, then it seems only fair that you make sure you never take advantage of what Mandrake has brought to the Linux world -- which is many more users and more opportunities for developers to sell their products and make money.

  8. Re:Here's your chance (not mine). by Arjuna+Theban · · Score: 5, Insightful

    RedHat survives because of their corporate strategy and partnerships (with IBM etc). Apple's survival has absolutely nothing with the free software projects, it's an absurd example.

    Mandrake is mostly a Joe User distro, and as much as I don't like it, I can see that the people maintaining it (even if it was 3-4 people) need to get paid. When everyone goes and downloads the iso in under an hour with their broadband, they see no money in their hands. THAT's the problem.

    -bm

  9. Non!? C'est ne vrai pas! by Apostata · · Score: 4, Insightful

    Though this will undoubtedly provide much entertainment for the Linux elitists in our crowd in the short term, I cannot help but wonder what the long-term effects will be.

    There are so many people out there who cut their teeth on Mandy, some who have become like the aforementioned zealots, but many like myself who still respect and support Mandrake the distro, and Mandrake the company. It's important that we separate those two things: the distro has always been user-friendly and remarkably scalable, whereas the company has been less stable than a beta-release.

    Still, it would be a shame to see it go.

    --

    This wasn't just plain terrible, this was fancy terrible. This was terrible with raisins in it. - Dorothy Parker
  10. Geeks turned armchair MBAs... by aquarian · · Score: 5, Insightful

    A common target of ridicule here on Slashdot is the MBA with little or no techcical knowledge trying to run a tech company. But the armchair MBAs in this discussion, trying to second-guess Mandrake's business operations, are pretty ridiculous themselves. It's like listening to a bunch of twelve year old paperboys criticizing the business strategies of the New York Times.