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MandrakeSoft Improves Financial Health
joestar writes "MandrakeSoft's latest financial results have been posted to their website. Despite a slight decrease in revenues - mostly due to the dollar/euro rate and negative effects of the Chapter 11-like protection - first results seem impressive: "the company reduced operational expenses by a factor of 5, increased gross margins by a factor of 5 and reduced its losses by a factor of 7". As a result, MandrakeSoft has been cash-flow positive since January 2003, and expects its first positive result for the current quarter! Along with latest Mandrake Linux cool products, these are excellent news in my opinion because it shows that an appropriate business model can help Linux companies greatly."
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clifgriffin > blog
it shows that an appropriate business model can help Linux companies greatly
I don't think that MandrakeSoft's business model really scales very well.
1. Tell everyone that you're about to go out of business.
2. Ask for donations.
3. PROFIT!
may have worked so far, but it's self-limiting -- as soon as you start to PROFIT!, it becomes hard to claim that you're about to go out of business.
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I figure this will get moderated down, but honestly, why does everyone care so much about how Mandrake is doing? I've always seen them as a horrible red hat and I don't know a single person who couldn't care less about this company, yet they're all over the place with "support mandrake! they're dying!" type of propagandha... Let Mandrake fail... If you can't take the heat, don't put out a lousy distro...
What's that? Showing ads during installation or begging for donations because you're going under? Or releasing a product that fries hardware?
Don't know about the submitter, but in the normal world this is not considered a "business model". It's called something else.