Canonical Close To $30M Critical Mass; Should Microsoft Worry?
ruphus13 writes "Mark Shuttleworth, CEO of Canonical, claims that the company is very close to the $30M mark, at which point, they will be a self-sustaining company. While people feel that this should not worry Microsoft, the real question is whether a 10,000 person effort on a failure like Vista can actually be the paradigm of a long-term strategy. From the article: 'Microsoft had 10,000 people [the article is unclear whether these were all developers, or administrative and support staff were factored in] working on Vista for a five year period ... huge profits in any given year can mean relatively little five years on. Canonical's self-sustaining revenue may not be threatening — but it leaves one wondering how sustainable Microsoft's development process really is.'"
Developer count is not what matters. Linux has plenty of great developers. Marketing is what's missing to Linux today.
Sadly, if you google "Ubuntu Marketing", you land on an empty page (https://wiki.ubuntu.com/MarketingTeam/News). Maybe someone needs to update Google's index :-)
Everyone here knows that Linux has the technical goods to take on Windows. But the cheerleading is missing. Where are the ads (with or without Jerry Seinfeld) and the glossy brochures at Best Buy?
So yes, Ubuntu being sustainable is a step in the right direction.
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FairSoftware.net -- jobs for geeks by geeks
That's what will kill Microsoft (and why I believe Ubuntu has become one of the top distros). Everytime I hear about Microsoft management story, it seems to be an exercise in bureacracy.
But what will hurt Microsoft is the day Quicken or Photoshop have Wine 1.xx on their system requirements, next to XP/Vista/Etc. I'm too cynical to think they'll come out with native Linux version, but eventually they'll want to tap into the 10 million+ users of Ubuntu and other Linuxes, if nothing else but to stop their competition from taking hold.
At this point, there isn't much reason to not be OS agnostic for those type of programs.
They are close to the $30 Million dollar mark! Hooray!
Okay... is that gross sales? Net profit? Payroll? My guess is gross sales, but the summary doesn't say. Without that other piece of information, this summary makes ZERO sense (and you can put any unit you want after ZERO).
Hey, guys, my car goes from 0 to 120 in 3! That makes about as much sense as the summary.
See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
MSFT reported revenue of $60.4 billion dollars for 2008. That comes out to about $165.5 million per day.
There are reasons why Microsoft may or may not feel threatened by things like Linux. Maybe netbooks. But I doubt a $30M company scares them much. In fact, I'd say they're much more worried about RedHat than Canonical - not because of their size, but because RH and Microsoft do really compete in the server market. How many Linux notebooks has Dell sold so far? Even by the lowered standards of Vista there's simply no comparison there.
Web2.0: I love when people Flickr my cuil and digg my boingboing until my google is reddit and I start to yahoo
And that's the problem -- people think a product or service has to make tons of $$ to be successful. Something like Ubuntu subverts our capitalist assumptions, because it actually gets cheaper the better it gets, and the more people who use it. Supply and demand work differently.
From that alone, you can tell he reads slashdot.
The second best quote from TFA:
Kudos on reaching the self-sustainable mark Mr. Shuttleworth! Let's hope you really do make the world a better, more free, place.
Gentlemen! You can't fight in here, this is the war room!
Numbers are totally irrelevant, or at least their magnitude is. The point is that Canonical is self-sustaining. Last time I checked, Mr Shuttleworth did not need the cash to mend his shoes, he wanted to make something that was good.
When Canonical becomes self-sustaining, he will have accomplished that goal. This means development will be funded, marketing efforts will be ongoing, and with luck, people will make money.
This means that if you like and use Ubuntu, it will be there in the future. I do for both, so this is very good.
The more money it makes, given their structure, the more development and marketing they will be able to do. I don't know the financial structure of Canonical, but I doubt the people with a piece of it are more interested in money than changing the world. That likely means the people who own it will dump the majority of anything over the $30M back into the distro.
If you see what they did with $30M, imagine what an extra $10M can do?
This is a good thing.
-Charlie