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Microsoft Planning to Buy Open Source Companies?

mjasay writes "At the Web 2.0 Summit, Microsoft CEO Steve Ballmer admitted that Microsoft 'will do some buying of companies that are built around open-source products,' suggesting that to avoid open-source companies would 'take us out of the acquisition market quite dramatically.' Ballmer has apparently come a long way since dubbing Linux a 'cancer.' The real question, however, is which open-source companies make sense within the Microsoft product portfolio, both from a technology and philosophy perspective. Novell? 37Signals? Jive? SugarCRM? And, equally importantly, which companies could look their communities in the eye after selling to Microsoft?"

44 of 276 comments (clear)

  1. Through Money tinted glasses by brewstate · · Score: 4, Funny

    "which companies could look their communities in the eye after selling to Microsoft?" ALL OF THEM.

    1. Re:Through Money tinted glasses by MobyDisk · · Score: 3, Interesting

      Absolutely! They could even sell their copyrights to Microsoft, and continue development on an open-source fork if they wanted. Heck, Microsoft might even decide to leave the application open source. I think it would all prove to be a very interesting experiment, to see if buying the company was really good for Microsoft, and to see if the community continued development of the product, and which ways the forks went. Quite interesting!

      Also note that this isn't really a "threat" to the community because large-scale OSS projects have copyrights owned by a myriad of people, so they really can't be sold. It only applies to companies that develop completely in-house, or require contributors to sign-away their copyrights.

      Related note: I work for a company that uses SugarCRM internally, and has modified it (very slightly) for our purposes. SugarCRM would become useless if we didn't have the source.

    2. Re:Through Money tinted glasses by Capt+James+McCarthy · · Score: 2, Interesting

      "ALL OF THEM."

      Agreed. Business is business. Just because M$ owns an OS based company doesn't make the code closed.

      The bigger issue is if M$ ends up buying all the cards in the game, and starts to sprinkle proprietary code into the OS code what happens to the OS code then?

      --
      There are no loopholes. It's either legal or it's not.
    3. Re:Through Money tinted glasses by Anonymous Coward · · Score: 3, Informative

      They are under no obligation to link to the modifications as the application is used INTERNALLY.

    4. Re:Through Money tinted glasses by smilindog2000 · · Score: 4, Insightful

      Both Novel and RedHat are publicly traded companies, which means by law they hold their investor's interests above all else. Last time I checked, you could buy pretty much anything from investors at the right price. Microsoft buying Novel and RedHat would cause less of a riot than when Murdoch bought the Wall Street Journal.

      Novel's market cap: $2B
      Red Hat's market cap: $4B
      Microsoft's market cap: $292B

      Microsoft could easily buy the two largest open-source companies on the planet without denting their reserves. If Microsoft ever suspects Linux is a significant threat, they'll just buy out the largest players. Let's face it... that's how #1 companies remain #1.

      --
      Beer is proof that God loves us, and wants us to be happy.
    5. Re:Through Money tinted glasses by shystershep · · Score: 5, Insightful

      Only problem with your theory is that Microsoft is a convicted monopolist. There would be an amazing number of regulatory hurdles it would have to jump through even to think about buying a company that makes a competing OS.

      --
      The bigotry of the nonbeliever is for me nearly as funny as the bigotry of the believer. - Albert Einstein
    6. Re:Through Money tinted glasses by rootofevil · · Score: 3, Funny


      Microsoft could easily buy the two largest open-source companies on the planet without denting their reserves. If Microsoft ever suspects Linux is a significant threat, they'll just buy out the largest players. Let's face it... that's how #1^H^Hmonopolies companies remain #1^H^Hmonopolies.

      FTFY.

      --
      turn up the jukebox and tell me a lie
    7. Re:Through Money tinted glasses by smilindog2000 · · Score: 4, Insightful

      While normally I'd agree with you, I'll risk more "flamebait" mods and predict that the Bush administration would be all for Microsoft's acquisitions. We split up AT&T, yet there were no major hurdles placed against AT&T re-merging. AT&T just bought both my cellular and home phone companies (Cingular and Bell South). They even provide my DSL. I keep my Sprint long-distance as a protest, but 90% of my money now goes to AT&T, half of it without a single reasonable competitor (my land-line). And what about Murdoch buying the Wall Street Journal? Big Business is the current administration's base.

      --
      Beer is proof that God loves us, and wants us to be happy.
    8. Re:Through Money tinted glasses by Lumpy · · Score: 2, Insightful

      Who cares. If the product was OSS and GPL or BSD licensed. the OSS community can always fork it and continue on unhindered.

      That is the incredible power of OSS. you cant make it go away, you cant take it from the people.

      Even if you make it illegal, it's still there thriving..... DECSS anyone?

      --
      Do not look at laser with remaining good eye.
    9. Re:Through Money tinted glasses by Bonzodog01 · · Score: 2, Interesting

      There is a quote somewhere from Bill Gates - I do not remember where I saw it, but he more or less said that he saw Open Source as the absolute future of software development. He admitted that Closed source was not going to work much longer, and that Microsoft would be looking in the Open Source direction for development. This potentially means that one day, we could even see an Open Source MS Office suite, which would be cool, as it could then possibly be ported to run natively in Linux.

    10. Re:Through Money tinted glasses by Red+Flayer · · Score: 2, Informative

      Both Novel and RedHat are publicly traded companies, which means by law they hold their investor's interests above all else.
      False. Completely false, but often misconstrued as the truth wrt public companies.

      The truth is that companies must adhere to their mission statements or they face the possibility of a civil tort.

      Yes, most mission statements include maximization of profit or somesuch, but it's mistaken (very mistaken) to believe that public companies can only take actions that are intended to maximize shareholder profits.
      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    11. Re:Through Money tinted glasses by j-pimp · · Score: 2, Informative

      One word: SysInternals.

      They were open source, and they sold up to MS. Now their code is being slowly neutered. In another year or two their really useful utilities (FileMon, RegMon, et al) will either be history or blind to accesses to 'sensitive' information.

      The /. Borg icon is right on the money...

      First of all they were never truly open source. They released the source code to their command line apps, but not the cool gui ones. Thats not to say the source code wasn't useful, but it was more of a learning tool than anything, and they were not fostering community development. Their apps continue to improve I'm not a full time windows admin so I haven't noticed any reduced functionality. Feel free to point out specific examples.

      What we lost from sysinternals getting acquired was we no longer have an independent person dedicated to figuring out the internals of the windows kernel and core api. He lost editorial control of himself. We also lost the source to the command line utilities, but copies of it exist, so we lose potential new source code. We also lose the potential of Mark writing articles where he proves how to do odd things like run windows without lsass.exe.

      --
      --- Justin Dearing http://www.justaprogrammer.net/ We're just programmers.
    12. Re:Through Money tinted glasses by rbanffy · · Score: 2, Insightful

      Careful. That's what software patents are for.

      Luckily, what will happen if MS buys RH and starts forcing people to pay for their patents is that they will discover US patent law extends very little beyond its borders.

      As I said before, it's sad the US tech industry will suffer, but IT companies can always move to other countries. A lot of them would be very happy to harbor the next Google if the US ends up being a hostile environment for new developments.

  2. Well.. by Reece400 · · Score: 5, Funny

    Sounds familier to me... http://imdb.com/title/tt0218817/

  3. Microsoft SuSE? by Nicholas+Evans · · Score: 4, Interesting

    And, equally importantly, which companies could look their communities in the eye after selling to Microsoft?
    Novell has already sold their soul and they're still staring people down. Guess this should be taken as an announcement that we'll soon be dealing with Microsoft SuSE.
    1. Re:Microsoft SuSE? by bconway · · Score: 4, Interesting

      Keep in mind, Novell sales are up 250% since their deal with Microsoft. Their customers don't exactly seem to mind.

      --
      Interested in open source engine management for your Subaru?
  4. loyality by avalean · · Score: 3, Insightful

    What i want to know is, will they change the license of the software after purchase?

    1. Re:loyality by AceJohnny · · Score: 2, Informative

      What i want to know is, will they change the license of the software after purchase?

      Well, sure, most probably: it's what Microsoft Does(tm). However, it won't change anything for versions previously released under real open-source licenses. It's called a "fork".

      However, will users follow microsoft's versions, or the free forked versions? That's the interesting question that only time will tell.

      --
      Misleading titles? Inflammatory blurbs? Keep in mind that Slashdot is a tabloid.
  5. If you can't beat 'em, buy 'em. by jimicus · · Score: 4, Insightful

    This is an absolutely textbook way of getting rid of competition - buy it and either assimilate their product into your own or simply close it down.

    Microsoft aren't bothered about small projects which don't attract much attention. Nor are they particularly bothered about large projects, provided there isn't any serious commercial backing to them.

    They're bothered about commercially backed projects where there is the potential to offer significant competition. Their spouting about how "you won't get any real support" (which is probably about their only reasonably sensible piece of FUD) only works when there aren't many commercially backed solutions based on open source software. If I worked for someone like KnowledgeTree or SugarCRM right now I'd be slightly nervous.

  6. Ballmer hasn't changed, buying companies to EOL by walterbyrd · · Score: 3, Insightful

    If msft buys any OSS companies, it will probably be just to kill the competition. Remember Foxpro?

  7. Probably buy and extinguish. by miffo.swe · · Score: 2, Informative

    The only reason i could think of is to buy some companies and extinguish them.

    --
    HTTP/1.1 400
  8. Hey, the Borg Gates image fits! by kilo_foxtrot84 · · Score: 4, Insightful

    "You will be assimilated. We will add your biological and technological distinctiveness to our own. Resistance is futile."

  9. This could be funny... by downix · · Score: 5, Insightful

    Well, here we go, buying up this open-source company to kill competition. What do you mean our users "forked" our product? What do you mean the staff we just layed off just made a new company to support this fork? What did we pay umpteen gazillion dollars for?

    --
    Karma Whoring for Fun and Profit.
  10. Unintended Consequences by Bazman · · Score: 4, Insightful

    Geek to suit: "Hey look, Microsoft are now *really* getting scared by open source stuff! They want to throw *real money* at it!"

    Also, people might now start investing in open source projects in the hope of getting a slice of that MS cash a few years down the line. This looks like a Good Thing.

  11. Aaaaaaand, we developers will be dropping by unity100 · · Score: 3, Insightful

    anything the company that was bought by microsoft was doing. No offense, it is an issue of trust. Microsoft screwed so many partners and non partners in the past. We cant just put that much effort on our spare time into things that can be sent to hell by microsoft in a given point in time.

  12. After patent trolls by marcello_dl · · Score: 4, Insightful

    the OSS "buy-me" trolls?

    1. fork the most recent open release of a recently MS bought out OSS project.
    2. improve and offer support for it.
    3. Now MS either has to improve its own branch or buy you out too (which is the 3b. Profit!!! part)

    I mean, seriously, isn't Microsoft going to prove money can be made with OSS?

    --
    ---- MISSING MISCELLANEOUS DATA SEGMENT --- [sigdash] trolololol
  13. Re:Evolution of strategy by Bourbon+Man · · Score: 2, Funny

    I think you have one too many steps in your dream. Shave off that last one, and your dream would be more in line with reality.

  14. Re:Evolution of strategy by laejoh · · Score: 3, Funny

    "Microsoft" est-elle une firme française?

  15. New MS Slogan... by Stanislav_J · · Score: 2, Insightful

    "If you can't beat 'em, buy 'em!"

    --
    "Every great cause begins as a movement, becomes a business, and eventually degenerates into a racket." -- Eric Hoffer
  16. Re:Be realistic.. by TubeSteak · · Score: 3, Funny

    Methinks the founders will be too busy cruising around on their shiny new megayachts to worry about such things.. and why not? And why not?
    Because everyone knows that submarines are the new megayacht.
    --
    [Fuck Beta]
    o0t!
  17. Great American Streetcar Scandal; 1936-50 by Hasai · · Score: 3, Informative

    This is not a new strategy.

    http://en.wikipedia.org/wiki/General_Motors_streetcar_conspiracy

    Vivendi Universal bought-up mp3.com and bulldozed it, Microsoft bought-up RAV AntiVirus and buried it. Now, M$ will probably do the same with these others; buy-up the businesses and turn them into parking lots.

    --

    Regards;

    Hasai

    1. Re:Great American Streetcar Scandal; 1936-50 by R2.0 · · Score: 2, Funny

      Are you aware that the article you reference spends more space debunking the "conspiracy" than promoting it?

      --
      "As God is my witness, I thought turkeys could fly." A. Carlson
  18. Fun with quotes by riffzifnab · · Score: 2, Funny

    First they ignore you, then they laugh at you, then they fight you, then you win. -Unsourced Mahatma Gandhi quote (wikiquote)

    Blaaaarrrg. Take off every chair! For great justice. Pew pew pew lasers! -/. Universe Balmer on learning of users forking OSS they just bought to kill. (my own head)
  19. Re:Evolution of strategy by darthflo · · Score: 2, Insightful

    The beautiful thing about the GPL and similar licenses is that you cannot Shut Them Down. Imagine, just for once, that all the code in the whole Linux kernel belonged to Linus (i.e. all contributers would've signed over their copyright or, where not permitted by law, an exclusive license). Now imagine Linus would suddenly decide he doesn't like Linux anymore and change the kernel's license to Microsoft's Windows 95 EULA after running an s/microsoft/linus torvalds/g over it.
    Would it change a thing? A bit. Linux couldn't be called Linux anymore, cause Linus would own that trademark. Linus may not continue being the benvolent dictator. Fin. The existing community would fork Linux version (change to new license - 1), call it LOLix and continue as before. It would fork. It would change it's name, but as long as somebody's interested, it would never ever die.

  20. Re:Work for Microsoft for free! by crimperman · · Score: 2, Insightful

    according the TFS Ballmer said companies that were built around Open Source, not Open Source projects.
    This - to me - speaks more of people like Linksys, some of the CRMs (as suggested) or perhaps even TiVO . That is companies that use Open Source software in their products rather than those that specifically and only produce Open Source software.

  21. Comment removed by account_deleted · · Score: 3, Funny

    Comment removed based on user account deletion

  22. Bet You Can by WED+Fan · · Score: 2, Insightful

    You can't un-GPL GPL'd software.

    If I were a deep-pockets-legal-department-with-gold-plated-business-cards type of company, I'd try it.

    • Buy it.
    • Fork it.
    • Version it, keep the old version as gpl 3.
    • New version, translated into, say C# is now non-GPL.
    • Stop distributing the old version.
    • Wait for suit.

    I'd be willing to bet that a judge will look at it and say, "Well this part is GPL'd, but you own it, so you can still enforce your GPL rights. This part is not, and because the project is yours, you can do with it what you want."

    So, who of you want to cough up the funds to defend against that kind of legal team?

    ...sound of crickets heard...Daffy mutters to himself.

    --
    Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong fix.
  23. Re:37Signals! by drix · · Score: 2, Interesting

    Too many buttons, indeed.

    It'll be a cold day in hell before they sell that company to MS.

    --

    I think there is a world market for maybe five personal web logs.
  24. Clippy by dintech · · Score: 3, Funny

    It looks like you're planning an acquisition...

    Would you like help?

    * Crush the life and soul out of the idea and shelve it.
    * Use your new acquisition's IP to bludgeon the competition.
    * Add bloatware to Vista.

  25. Most likely OSS companies with patents by Dcnjoe60 · · Score: 2, Interesting

    Instead of buying OSS companies to kill them off, most likely Microsoft would be looking for OSS companies with patents that have been used by other OSS projects, particularly Linux. Once Microsoft owns the company, it can enforce the patent. Forking won't help with a patent violation, particularly if the patent is question is in use by other projects.

  26. Wait, wait, wait... by Actually,+I+do+RTFA · · Score: 2, Interesting

    Microsoft may be many things, but stupid is not one of them. I would bet substaintal sums of money that the staff will have signed non-competes keeping them from working on any non-MS fork (and maybe any other OSS as well). Actually, umpteen gazillion dollars may not be a bad price to take out the various project leaders. Let us be honest, without good managment familiar with the source, large-scale OSS projects are impossible. And a rapid decapitation may take years to recover from.

    --
    Your ad here. Ask me how!
  27. thank you Microsoft! by m2943 · · Score: 3, Interesting

    This is great news. Microsoft will give hundreds of millions of dollars to the founders of open source companies, and the software itself will remain open source. This kind of monetary reward can only encourage the development of more open source software. Thank You Microsoft!

  28. Re:loyality - doesn't matter by Locutus · · Score: 4, Insightful

    What does Microsoft care about changing the license? Do you not realize that first and foremost, Microsoft is likely to just terminate the project?

    And I have to wonder how anybody on /. could even give another option a moments notice. Microsoft exists because of Windows and anything they touch gets destroyed if it does not work ONLY with Windows. That's in 20 years of history folks. When Java was knocking on Microsofts door they responded by purchasing promising Java based companies and closing them down. Netscape got the same treatment. Why would anybody not think this was their plan for open source companies they purchased since most open source projects work on more than Windows and that is a threat to Windows? The top level at Microsoft look at everything as a threat first since Microsoft exists because Windows exists and without Windows, they are history.

    And the sad thing is that Steve Balmer was the one saying this yet nobody in half the posts mentioned them just terminating the project. WTF?

    LoB

    --
    "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
  29. Re:Evolution of strategy by rbanffy · · Score: 2, Interesting

    "They cannot compete effectively with open source so they are going to buy as many open source companies as they can and Shut Them Down"

    The beauty is in imagining how much of the money they pay for such companies will get funneled back into FOSS projects. It could represent an impressive boost mainly because projects and companies cooperate between them, something MS is unable to do.

    Their best shot is to try to own as much intellectual property as possible and that will only take them as far as US-like software patents do exist. These movements are mainly intended to reduce the momentum behind FOSS thus complementing their FUD strategies.

    They will kick, they will scream, but they sure look doomed to me. It's only a matter of time now.