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Shuttleworth Says Canonical Is Not Cash-Flow Positive

eldavojohn writes "Mark Shuttleworth, the millionaire bankroller who keeps Ubuntu going strong, has revealed 'Canonical is not cash-flow positive' just as version 8.10 (Intrepid Ibex) of the popular Linux distribution is released today. In a call, he said he 'had no objection' in funding Canonical for another three to five years. He did say, however, that if they concentrated on the server edition of Ubuntu that they could be profitable in two years."

31 of 304 comments (clear)

  1. Of course they should concentrate on the server by jcookeman · · Score: 5, Insightful

    Red Hat itself has made it public that the desktop market is a very difficult one. Ubuntu has made very decent inroads to the desktop market for Linux, but it is true they need to put much more effort on the server side to become truly competitive. I think they have done some good work, but look forward to see what the community can provide in the next couple years. It's very hard to start competing in a market that is already spoken for by a few big players.

    1. Re:Of course they should concentrate on the server by westlake · · Score: 4, Informative
      Red Hat itself has made it public that the desktop market is a very difficult one. Ubuntu has made very decent inroads to the desktop market for Linux
      .

      It depends, I suppose, on how low your expectations are. Top Operating System Share Trend

    2. Re:Of course they should concentrate on the server by Lumpy · · Score: 4, Insightful

      but it does not have to be. honestly mediabuntu the unofficial and technically "illegal" offshoot is mainstream ready. If they have to charge to have a legal mediabuntu released so if you install it's ready to go even for the unknowing home user then that is what they need to do.

      If joe sexpack can buy a $19.99 ubuntu cd from worst buy and get it installed and on the net watching people getting kicked in the nuts on youtube and playing his music it will take off fast. When it works on that old pc and they dont have to buy a new one and Vista....

      but then it will also take advertising....

      Hello I'm a Windows PC, and I'm a Ubuntu PC......

      WPC: I'm good at business!
      UPC: you suck dude... wow!..... suckage! sssssuuuuuccckkkkkk!
      WPC: that's rude.
      UPC: Looooser! You suck! Loser!
      WPC: What is the matter with you?

      Ubuntu..... because windows sucks...

      well it would make people laugh :)

      --
      Do not look at laser with remaining good eye.
    3. Re:Of course they should concentrate on the server by Markspark · · Score: 5, Interesting

      yeah, but still the fact that the increase of linux is almost 90% in little less than a year, it seems as though the ball has started to roll.

      --
      i find your lack of faith in science disturbing!
    4. Re:Of course they should concentrate on the server by Legion_SB · · Score: 5, Informative

      Wow. Did anyone else notice that Win2K is actually going up? Maybe folks burnt on Vista are going back to the fugly goodness that is Win2K Pro. ;-)

      You might want to double-check the dates on that chart, friend. Win2000 is only going "up" when reading in reverse chronological order.

      --
      'a';DROP TABLE users; SELECT * FROM DATA WHERE name LIKE '%'... if you're reading this, it didn't work.
    5. Re:Of course they should concentrate on the server by onefriedrice · · Score: 4, Funny

      You're right. It looks like this is definitely the year of Linux on the desktop... again.

      --
      This author takes full ownership and responsibility for the unpopular opinions outlined above.
    6. Re:Of course they should concentrate on the server by KiloByte · · Score: 4, Informative

      Note that the stats you provide are from hitslink.com -- that excludes any users of adblock and any other crapblocker worth its salt.
      Windows users will typically use MSIE and thus will be included unless their net admin installed some DNS or squid-based exclusion list. The rest of us are quite likely to have cesspools like hitslink blocked.

      --
      The creatures outside looked from Alt-Right to Antifa; but already it was impossible to say which was which.
    7. Re:Of course they should concentrate on the server by apodyopsis · · Score: 5, Interesting

      or to crunch the numbers another way - Windows lost 5.5% of the desktop market in a little over a year....

      ouch, I bet that smarts.

    8. Re:Of course they should concentrate on the server by the_womble · · Score: 4, Funny

      No he just thinks its impressive that he knows three women - that's more than any of his friends.

    9. Re:Of course they should concentrate on the server by somersault · · Score: 4, Interesting

      Saying your sales are up x% is a gimmick when the entire market is actually up x+3% sure, but when you say my marketshare is up by x%, that's not a gimmick. And Linux's market share is definitely up according to that chart. Vista doesn't particularly count IMO, you have to take Windows as a whole - because those who are used to Windows will often just take Vista with their new machine. You don't get many machines that come with Linux by default, but lots of PCs just come with Vista these days, and obviously a lot of people either don't know the difference between Windows versions, or still want Vista just because it's the latest thing. So for Linux adoption to be on the rise it shows that people are choosing Linux over Windows.

      I wonder how much of the Linux adoption was spurred by devices like the EEE PC or Linux based mobile phones, how much was just webservers, and how much is due to more user friendly distros on desktops and laptops? And if they count Linux on mobile phones in their stats, do they count Windows Mobile as Windows? There's also the matter of what websites the stats are gathered from.. I'd love to see the stats google have on OS hits to google for each country they operate in.

      --
      which is totally what she said
  2. Really by Anarke_Incarnate · · Score: 5, Insightful
    What do they have to offer, besides the .deb repositories and less long term support, than Novell/SUSE and Red Hat or Oracle cannot do now?

    They are late to the party, and while I am glad for the strides they have made, Novell and Red Hat can eat them for lunch with other tie ins with their product line.

    1. Re:Really by Anarke_Incarnate · · Score: 4, Interesting
      The reason they use it for smaller companies is that they are probably NOT paying for support and don't call for things like kernel fixes or package fixes. What kind of support does Ubuntu have for tools when not even all versions of RHEL or SLES, let alone Oracle Linux are supported? Where is the OMSA package for Ubuntu?

      The name helps sell PHBs, but the support from either RH or Novell is far better. I am sure Canonical can do well, but will they put boots on the ground in enough time to support outages?

      What is the model for cloning machines, deploying machines and such?

      What is the structure for connecting to various directories?

    2. Re:Really by Anarke_Incarnate · · Score: 4, Insightful
      Forums and help communities are great for testing beds or for non critical-path errors. If I need configuration help but don't want to waste time on a phone call for something trivial, I can post to a forum for help, and do get it. However, what would you tell your boss when your main DB server is tossing out errors and refusing connections, but you don't have paid support?

      "Hey, don't worry. I posted at 9AM. In a few hours, somebody will respond with something that may fix the problem" doesn't seem to cut it in that scenario

    3. Re:Really by EagleRock · · Score: 5, Insightful

      I think Canonical hit the ground running with Ubuntu Desktop, since it tried to bring Linux to the masses with easy GUI tools and whatnot. The problem is that Ubuntu's strengths don't carry over to Ubuntu Server, especially when you deal with SysAdmins that know what they're doing. Their only strength is that they're based off of Debian, which you can get with, well, Debian. You can tell that they are trying to tout ease-of-use with their default LAMP install out-of-the-box, but that's already been done years ago, and they just don't have the advanced server options that Novell or RedHat have for their enterprise solutions. I appreciate them trying, but their methodologies are doomed to fail.

      --
      How many boards would the Mongols hoard if the Mongol hordes got bored?
    4. Re:Really by Anarke_Incarnate · · Score: 4, Informative
      Quoting bullshit figures is not an alternative to having an argument. 99.999% is a made up number. When the kernel that ships with the product has flaws with the configuration that is being used, for whatever reason, the vendor should try to do their best to fix the situation.

      When I was administering a Novell/SUSE network, and we had issues where SAMBA would drop kerberos tickets in our environment, Novell provided us with a custom package for SAMBA to fix the errors.

      In another situation on RHEL, Red Hat provided patches for OUR company to fix issues we had with Red Hat Cluster.

      Just because you have never hit on interoperability or configuration issues that make and break business does not mean it is not important. Just because you think having an instance of Apache running, without load balancing application routers doesn't mean that is how the enterprise world works. There are a LOT of Oracle App and DB servers on Linux. RAC is very popular as is Oracle 9i and 10g database. Being ignorant does not make you right.

  3. The server version? by stinerman · · Score: 5, Interesting

    He did say, however, that if they concentrated on the server edition of Ubuntu that they could be profitable in two years.

    The server version, otherwise known as Debian.

    Hasn't this gone full circle? The Debian release cycle is too long and uncertain so out comes Ubuntu. Ubuntu takes from unstable, fixes some bugs, adds some polish and makes a decent desktop OS. Now Ubuntu wants to concentrate on the server which is exactly what Debian stable is for? Please. Canonical would be better served by just supporting Debian.

    1. Re:The server version? by dsginter · · Score: 5, Interesting

      Hasn't this gone full circle?

      No - the predominant attitude in the industry is "if you don't like it, then fork it" - so they did. Why did they do it? I think that you answered it yourself with the very next sentence:

      The Debian release cycle is too long and uncertain so out comes Ubuntu.

      When you see how the mirrors are getting slammed right now (8.10 is on most of them), you simply must realize that Ubuntu has stolen most of the mindshare aware from Debian. Is that not good?

      --
      More
    2. Re:The server version? by MrNaz · · Score: 4, Insightful

      This is a great idea. Supporting Debian will give them the support revenue, and eliminate all the development costs associated with maintaining their own derivative distro. They'd also be strengthening the Debian community, which is the underlying reason Ubuntu can exist in the first place. Ubuntu hasn't the resources to duplicate even a fraction of Debian's activity, so they serve both themselves better and the Debian community by simply supporting Debian stable and, if they *really* want, maintaining a custom patch set for whatever changes they may want (different process scheduler or whatnot).

      I never understood why they needed or even wanted to create their own server distro when Debian stable is a rock solid, well known, highly regarded distro that they could profit from by supporting the existing users rather than trying to create a server user community of their own by convincing sysadmins (who are very hard to change by the way) to use their own, new, shiny distro that is untested and unproven, especially when compared to the likes of Debian stable.

      Dumb move from Canonical, IMHO, and it smacks of the NIH (not invented here) mindset.

      --
      I hate printers.
    3. Re:The server version? by rzei · · Score: 4, Interesting

      I think that you answered it yourself with the very next sentence:

      The Debian release cycle is too long and uncertain so out comes Ubuntu.

      I totally agree. Debian is great, but as they don't have as good release cycle as Ubuntu, there are quite many packages which are way beyond usable as those cannot be upgraded in a stable Debian.

      Of course it's a matter of stability also, but a release cycle would eventually do only good for Debian also. Just think what would happen if Debian and Ubuntu Server could unite at one point.. Not knowing the specifics, but I guess many debian devs/maintainers already receive paychecks from Canonical.

      Debian has great number of great maintainers, and have set the bar on package management to a whole another level for everyone in the operating system field.

      Ubuntu in the other end has revolutionalized the desktop, essentially by adding "listening users needs" and "release cycle" to already good Debian recipe.

      For support, Debian based (server) system is something I could consider buying that. As long as they can handle cost being accessible to ISV's.

  4. ... and bless him by TheMeuge · · Score: 5, Insightful

    Mr. Shuttleworth is truly praise-"worthy" (forgive the pun) because he's willing to put his money where his mouth is, and pay out of pocket to support his principles.

    In the end, nothing is actually "free". While people can and do put in their time, without expecting to be compensated for their work on the various Linux distributions, or other open-source software, they do so because they have other jobs that support them financially. As the Linux desktop market expands, there will be a need for even more people to dedicate even more time to maintaining and perfecting the codebase... and this will require a positive cash flow into the industry. One way or the other we (the consumers of these wonderful products) are going to have to pay... and we shouldn't be apprehensive about it. I have no problem with paying let's say $50/year for Ubuntu, because it has worked great for me.

    1. Re:... and bless him by rolfwind · · Score: 4, Insightful

      One way or the other we (the consumers of these wonderful products) are going to have to pay... and we shouldn't be apprehensive about it. I have no problem with paying let's say $50/year for Ubuntu, because it has worked great for me.

      And here you go:
      http://www.ubuntu.com/community/donations

      Personally, for myself, I would think with every release, $20 is warranted... Microsoft would love to fleece me of much more for the amount of computers I put it on.

  5. Doesn't surprise me by MikeRT · · Score: 4, Interesting

    Desktop users are not the ones likely to need to purchase support contracts, aside from business environments. Every business that I've worked for that has used Linux has used Red Hat Enterprise Linux Workstation for that very reason. Canonical's big problem here is that they have taken over a market where the majority of sales come from people buying off-the-shelf licenses or through OEM sales. the only way that they could get around that would be to charge say... $20/copy of Ubuntu to Dell, Asus, etc. to provide support for their netbook users.

  6. Re:Hands Down by Anarke_Incarnate · · Score: 4, Funny

    Brown. It is full of brown. What can brown do for you?

  7. Focus on one more.... by Lumpy · · Score: 5, Interesting

    Give me a Commercial version that is a bit more polished and has the important stuff already installed and ready instead of me having to go and run the installers to get everything ready. also get a "remote help" system in place so aunt millie can press "help me" and type in my email address and then I can easily help her with it, or she can call you and get paid support.

    Honestly, Ubuntu is ALMOST there. if it takes a pay for version for me to point the Friends and family at then so be it.

    --
    Do not look at laser with remaining good eye.
  8. Re:Linux is for suckers by MrNaz · · Score: 5, Informative

    Linux is nice but I recommend keeping it far away from any bank account. It's a black hole for money...

    I'd agree with you if you weren't a) an idiot and b) wrong.

    You've totally missed the point of the open source model. Linux doesn't *need* a profitable parent company. Projects like PostgreSQL, FreeBSD, the Linux kernel itself and others prove that companies are not needed in order to create excellent software. Debian existed long before Ubuntu, and will live long after it, should Ubuntu die. If Ubuntu dies, you can be damn sure a community will spring up to take the slack up now that demand for an apt based distro that isn't 3 years behind has been proven and an appetite created.

    As for the impossibility of Linux profitability, Red Hat's financial statements show a consistent, increasing profit, quarter over quarter, for the last 2 years. Go troll elsewhere please.

    --
    I hate printers.
  9. Canonical should consider pay-services by GauteL · · Score: 4, Interesting

    ... for users.

    I'm thinking easy on line storage integrated with OS and applications. Similarly they could offer backup space, email accounts, web space, picture storage and sharing,, Jabber service, OpenID, etc.

    Think ".Mac/MobileMe" style services.

    I would certainly be willing to pay a reasonable subscription fee for a nicely integrated service.

  10. Open Source Funding by rockmuelle · · Score: 4, Interesting

    This raises an interesting point that I'd like to see /.ers discuss:

    Without the charity of well-to-do geeks or companies that fund open source development from profitable product lines, can Open Source succeed at the enterprise level?

    This thread is a good example of the first case. Sun/Open Office, the Google/Mozilla "relationship", IBM, et al./Eclipse are examples of the second as is the general practice of different companies employing Linus, Guido and a few other key people to keep Linux/Python/etc going.

    Without the strong investment from those with deep pockets, can Open Source software progress at the rate needed to remain viable in the enterprise? What happens when the product lines funding those projects start losing money?

    If you respond with counter-examples, make sure you do a proper accounting of who is really doing the development work on the project. Is it people in their spare time or is it paid workers being funded by the revenues from other projects? And, of course, focus on Open Source software that is being pushed and is _viable_ for enterprise use - hobbiest level software and boutique libraries will always have volunteers available.

    -Chris

  11. Re:Linux desktop has never been profitable by _Sprocket_ · · Score: 4, Insightful

    To me Linux has never been profitable in the Desktop-User side, but in the Servers Side.
    How can one make profit in the desktop world? Free software is mostly based on services not software license selling and it's not only libre but gratis (free as beer).

    You're focused on the wrong thing. It doesn't matter if it's "desktop" or "server". What matters is who is doing the buying. Consumers / end users don't spend the big money on services. Enterprises do. And so what you want to do is provide a product that meets needs of the Enterprise. If enterprise customers want desktop Linux support, then that's a nice market to be in. The reality is that such a market is still very limited and niche. But enterprise customers are doing plenty of Linux deployments in the datacenter. That market is sizable and growing. That's where the money is.

  12. Re:Hands Down by Nevyn · · Score: 5, Insightful

    A single major advantage: It's Debian-based, but more current, better honed

    "more current" in relation to Debian stable, maybe. In relation to the competition it is always subjective, given that RHEL/CentOS have 7+ year support lifetimes. I don't think anyone has done a "newness" and "correctness" metric for LTS vs. RHEL ... my guess is that they are about equal at GA.

    but deb package management is far better than Red Hat's rpm, and that can be a huge advantage.

    This is hard to qualify statement, rpm is a super set of dpkg and it's hard to argue that yum is anything but a superset of apt-get (in terms of features, UI and speed). You could probably argue that Debian packaging is stricter than Fedora/RHEL/EPEL, mostly due to the above (which also means it's harder on the packager, but somewhat easier on the tools). Maybe you just mean that Debian/Ubuntu "offically support" apt-get dist-upgrade, whereas Fedora/RHEL/CentOS don't, yet, for various reasons ... which while valid is much less so in a real company setting, IMO.

    So there are weaknesses in Debian, but do they compare with rpm hell,

    I can only assume that you haven't used rpm/yum recently ... or that you have seen cases where bad external packages are imported into rpm case but not in the dpkg case (as the resulting dpkg hell is often much worse).

    or with the many adventures with Red Hat's aggressive patching of its kernels? If you're running Red Hat and compile your own generic kernels, that's not a problem. With Red Hat you really should. With Ubuntu I haven't yet had a problem running their kernel versions.

    I can only assume this is some kind of weird joke, or maybe you are trolling. Ubuntu is infamous for kludging their kernels and not working upstream ... and personally if you are not running the distro. kernel on RHEL then you might as well set fire to your money instead.

    --
    ustr: Managed string API with ave. 44% overhead over strdup(), for 0-20B
  13. Re:Hands Down by Tekfactory · · Score: 5, Insightful

    I don't want to start an argument, but

    Have you tried Red Hat, Fedora, CentOS lately?

    Package Management through Yum, or the Package Manager is easy to use, works fine and is much easier than loading individual packages through Rpm and divining dependencies on your own.

    I assume you problems with Rpm are with the package installation program and not the file format itself.

    The weirdest problem I have had lately was uninstalling Samba ripped Nautilus off a system, and my Desktop icons disappeared. Reinstalling Nautilus fixed the problem, and also re-loaded some tiny piece of Samba it thinks it needs.

  14. Learn to play chess. by jotaeleemeese · · Score: 4, Interesting

    Then check the prize given to the mythical inventor of the game.

    If the same speed of growth would continue Windows would be over sooner than you think.

    But to know this we have to talk again next year. What I remember is when Linux was literally smuggled in any datacentre, what I saw this afternoon in a major PC shop here in London is that 20% of the laptops in offer had Linux installed.

    --
    IANAL but write like a drunk one.