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The Way VCs Think About Open Source: Mostly Wrong (infoworld.com)
An anonymous reader writes: In an epic smack-down, Simon Phipps examines a recent article by some VCs with an apparently strong track record in open source startups and finds the way they see the world makes them plain wrong about Red Hat, OSI licenses, Apache and probably everything else they talk about.
With DTs and STDs
Even reading the article I'm not sure what they are referring to.
VCs who miss the point of open source shouldn't fund it
False, absolutely false. VCs view investing like a trip to the casino: bet on 20 longshots, hope to manage at least 1 of the 20 to a 100:1 win. Overall ROI: 500%
Fundamental understanding of the technology behind the business is not required - estimating its chances in the marketplace is.
Anybody who is seeking VC funding and also believes that the VCs will help them further some ideological agenda is either completely misguided, or attempting to further the ideological agenda that "greed is good."
Greedy VCs with no concept of open source fund open source so they can ignore principles of open source and make money? So, people who want to make money don't understand something set up to be given away for free?
Don't get me wrong, the article is interesting in that it's refuting an article written by some VCs without a clue ... but that VCs don't have a clue about open source doesn't surprise me.
I pretty much expect the VCs and MBAs to be clueless on this topic, because they can't reconcile "free" with the need to leverage synergies and monetize shit.
Lost at C:>. Found at C.
Nod politely, cash the checks, and move on. That is the correct response to idiots with a lot of money looking to talk about stuff they don't know anything about.
Some licenses allow anyone to create derivative works that build on the original product, while others reserve that right only for the owners of the original product.
Its pretty clear they're referring to the ability to make commercial works, not downstream OS projects.
Those biases seem to arise from an outdated view of the market for open source software. Students of history know that pioneers of new markets are able to command profit margins approaching 100 percent as long as they can behave as monopolists. As their markets becomes subject to fair competition, margins fall. Expecting 90 percent margins is probably not realistic, yet the authors clearly do:
He seems to be ignoring his own point from the next paragraph, most VC ventures fail. In order for them to see high returns they need the huge home run, if a business bunts into first and barely covers the investment they're still in the hole for the other 5 ventures that failed
If they are still willing to invest in your business that you are able to make successful because of that, who cares what they think? What they may believe about Open Source, after all, does not change what it actually is.
File under 'M' for 'Manic ranting'
These guys didn't get rich by not knowing their ass from a hole in the ground. They got rich by using knowledge to strategically build on investment. I don't believe for a second that the misinformation spread around about Apache, RedHat, and OSI policy in general represents naivety; it represents protectionism. As long as people like for example, my non-tech-savvy relatives think that these assholes know more about the Open Source Initiative than I do, than my ethics and expertise, along with that of thousands of other Free/Libre Software advocates like me, will consistently be devalued by business. Saying these VCs are just unaware of the damage this misinformation does is like suggesting Apple and other Silicon Valley companies like them enter into no-poaching agreements on accident.
VC's consistently make massive profits, proving to those that matter, themselves, that they are absolutely correct.
Simon is a penniless hack, proving he's not nearly as smart as he thinks he is.
VC firms are business firms with little understanding of the scientific or the technical. In other words, they are herds of PHBs that simply smell money like sharks smell blood.
I thought Nadia, here, did a bang up job about what is wrong in the open source world, here. https://medium.com/@nayafia/ho...
I pretty much expect the VCs and MBAs to be clueless on this topic
Then you yourself are pretty much clueless on the topic of VCs and MBAs. For example 1/3 or more of MBA are coming from a technical background, scientist or engineer. When the topic of open source comes up in an MBA classroom there is no shortage of software developers to explain what it is and why it is useful.
An MBA program is not a finance/accounting program. It is an overview of all the major parts of an organization. Finance and accounting are just two of many topics covered. The point of an MBA is to let you see how the other departments in your company/organization look at things. So that you, for example an engineer, can understand the marketing, strategy, accounting, etc perspectives so that you can factor in their needs and perhaps more importantly be more **persuasive** when communicating technical needs and realities to these people. In short, the engineers get what they want more often when they can understand and communicate more effectively with the non-engineers. That is the reality of an MBA program today.
When do I get my money back? How can I screw over the founders to make more money?
"Startup: A Silicon Valley Adventure" by Jerry Kaplan is great book on how his pen-based computer company got screwed over by the VC's, Microsoft, Apple and IBM.
http://www.amazon.com/gp/product/B00L0M749M
Those guys wouldn't be the first ones to be surprised when people uses their open-sourced product in ways they never intended for releasing it under a license they didn't understand.
Yet even those of us who think we understand FLOSS don't know how it will work out in the long term or even if it is viable at all, at least in its current shape. It's a whole new economic model made possible by a radically new technology, and it combines some ideas from extreme communism (radical lack of proprietary control) with some ideas from extreme capitalism (radical competition and meritocracy). I say, let's those guys fund it so we can figure it out with real-world examples, instead of killing it because of a fear for the unknown.
Singularity: a belief in the "God" idea with the "demiurge" relation inverted.
MBA = An EXTREMELY STRIPPED DOWN Business Adminstration degree is what it is. I know - I have one in a Bachelors of Science (not mere MBA) coupled with comp. sci. to go with it in other degree work.
How short is it? Way short. Way, WAY short in fact. It's cursory as hell (equivalent imo, to a 2 yr. AS MAYBE @ most/best in straight Business degrees).
The actual full degree has come in handy for my career as a software engineer/programmer-analyst though exactly the way you say.
It allowed me to interact and communcate with personnel in most every facet of business over a nearly 2.5 decade long career in the art & science of computing. I was able to understand their departmental needs specifically a lot better than my colleagues minus the business background in accounting, finance, marketing, even extending into areas like logistics and more.
Due to that background, I OFTEN found it easier to make analogies they'd understand (vs. computer jargon) for them because of this.
For MIS/IT/IS work, I'd almost make it mandatory (and it IS the background companies seek in it too largely for about a decade++ now in fact).
For me, it parlayed into a fairly fun career for me and nicest part is, there was always work (even now though I'm largely retired working only part time for Fortune 100/500's on contract or consulting when the project's easy enough & interesting ONLY - running a small business on the side with it).
APK
P.S.=> Nobody "does business" EXACTLY the same in their internal methods & systems alone is why. Always work because of it... apk
The TechCrunch article referenced has a related article link to Where The Free Software Movement Went Wrong, which has the following nugget from a writer discussing the difference between Free Software and Open Source Software:
Morozov writes that the difference between the two is that free software emphasizes users and that open source emphasizes developers. But I would submit that free software is also primarily interested in developers as well, in that the freedoms it emphasizes are ones that matter to developers, but very little to the rest of us. That’s where the movement went wrong.
and then goes on to say
try telling graphic designers that they should use GIMP instead of Photoshop because they can study the code, modify it and release their own version. Or try telling a data analyst why they should use Libre Office instead of Excel, or a musician why they should use Ardour instead of Logic. See how far you get.
Where I think that goes wrong is one of educating the users, specifically that even if they can't code themselves, Free Software helps them by preventing lock-in. As an example, a friend has a bunch of stuff she worked on years ago, in Appleworks format. While there are still a few programs that can read that format (including Pages), they don't implement everything, fonts are different, pagination is different, etc. If Appleworks had been Free, and the fonts Free, it's much more likely that there would be programs and fonts that could perfectly reproduce what she originally had, and she wouldn't be relying on continuing support from any one source. Alternatively, if MacOS and the Mac ROM had been Free, she'd be able to LEGALLY fire up an emulator to run the original version of Appleworks. Even if she herself hadn't stashed away source code, it's almost certain that someone would have, and what she had wouldn't be locked away behind proprietary walls.
It's bad enough we have hardware obsolescence, we shouldn't have unnecessary software obsolescence when it's so easy to prevent (the entire source code to the Mac ROM and OS and all the development tools would be a tiny blip on any current storage device, I can transfer the entire hard drive of my first computer (Lisa, 10MB) in a couple seconds to almost anywhere in the world; the cache files for this page are probably larger than a MacPlus ROM image plus an early Mac boot diskette).
How many VCs would invest in service industry? Not many, say plumber services or architectural offices get VC for their core activities. Software services have traditionally had relatively higher project failure rate so the risk is also higher. The VCs are looking to scale up of the business so that they may collect their exit reward at IPO. Complex professional services scale up much too slowly for the typical dot.com VCs. Also the VC naturally sees the software as IP which potentially increases the exit reward and open source approach as giving away this IP for free for the product companies. Typical venture capital is simply the wrong type of funding for OSS, for the OSS brings people and corporations together for mutual interest, while a VC wants the OSS product to dominate the market.
Look at their success ratios!
Subjects says it all.
Would you expect your bookie to understand open source?
No?
Then why would you expect your loan shark to understand open source?
Money is like fertilizer. Distributed evenly, it promotes growth. Concentrated in visible piles it smells bad, causes disease, and pollutes the environment.
If VCs haven't figured this out yet, you're wasting your time expecting them to understand anything more complicated.
This is exactly right and the "open source community" needs to understand this or they will get nowhere. Even if the MS support is poor (and I assure you, it's generally terrible, even enterprise "platinum"), *nothing at all* or "go ask someone one a message board" is a complete non-starter.
I wouldn't say at all costs, however...
While they can be charming and sound great in negotiations, do your homework before getting in bed with one. Vulture capitalists is a perfect name for some of them, the last one wanted terms that would make a loan shark jealous.
Be careful when working with them.
MBA = An EXTREMELY STRIPPED DOWN Business Adminstration degree is what it is. I know - I have one in a Bachelors of Science (not mere MBA) coupled with comp. sci. to go with it in other degree work.
A typical MBA program has 18 business classes. A typical undergraduate program has 24 business classes. Comparing the undergraduate and MBA coursework at my old university shows very similar core classes and electives. The core classes are damn near identical. The elective classes are similar but the undergraduate program has a few more highly specialized classes (ex taxation, micromarketing, business of healthcare, etc), the MBA program has more entrepreneurship related electives.
The BA and MBA programs are not that different. The BA seems to include some more low level stuff, which makes sense given that the BA graduates will typically have no work experience in the field. Unlike the MBA graduates who will typically have some experience in the field and possible some leadership experience as well.
... that Viet Cong thought much about open source.
See subject: For a national championship winning Lacrosse team @ LeMoyne too where I got that B.S. Business Administration major & MIS minor - how about you?
I later went to a local community college to go STRAIGHT Comp. Sci. & that was for the 2 yr. Associate degree which I am presently 94/120 cr. hours into a Bachelors degree in CS as well chipping away @ it over time (why I bother I don't know - I worked as a programmer-analyst/software-engineer 1994-2008 professionally which means more than degrees)... again, how about you??
APK
P.S.=> You trolls are pitiful - I have no reason to lie here as I have everything to gain by telling the truth... apk
See subject: He went for an MBA (is a Colonel in the armed forces now in Washington DC) & I helped him study a few times & KNOW the difference in courses (as I myself have a Bachelors of Science in Business Administration + MIS minor from my 1st of 2 degrees, 2nd was @ a local community college later for STRAIGHT Computer Science (which I took way, Way, WAY more than the ordinary required course load of languages in, allowing me transferrable credits towards a Bachelors of Science in CS, 94/120 credits into it now as I write this in fact chipping away @ it over time - though WHY I bother is sometimes something I think about - after all: I worked as a software-engineer/programmer-analyst from 1994-2008 professionally)
APK
P.S.=> There IS a difference between MBA & full bore Business Administration degrees... I know 1st hand, not needing the former when I already have the latter (& instead went for a cheaper cost route to more CS ontop of my MIS minor in that business degree by going straight Computer Science to enhance my know-how in it)... apk
Look I know as I've described to others what the courseload is for the BS in Business Admin (with MIS minor here) - I have it & helped my brother during his MBA - it was less work for the MBA by QUITE a lot, which you describe yourself no less (30++% difference).
APK
P.S.=> I know all about the MBA requirements. My brother is a Colonel in the military in Washington DC, & came out of Syracuse University for his undergrad work, worked as a military officer first (mustang too, came from 'grunts' 1st THEN became an officer - very proud of him for it too), then in the Corporate world for HONEYWELL as a plant manager & moved on for that MBA for more... now he is TRYING to cut costs on military spending in DC (he's great @ math is why)... apk
See subject: It is a LARGE margin & suddenly when what YOU yourself describe is used against you it's now "irrelevant"? Please, lol... go away. You're defeating yourself.
APK
P.S.=> Not only can I speak of Business degrees (having one myself, a FULL one no less up to Bachelors level) but I also can of CS & DATASTRUCTURES is one of the VERY BEST MOST INFORMATIVE COURSES IN THE CURRICULUM - & as far as BOTH Business (where I've been in accounting, marketing, finance professionally as well as managment in my time on this earth, 1/2 century++) earlier on for me (80's right after that degree for a 7 yr. period) but I also RUN MY OWN SUCCESSFUL BUSINESS for a decade now doing well (my money works for me, NOT the other way around as I used to have to as a "wageslave") AND Computer Science (where even with a 2++ yr. degree only & the MIS minor from Bachelor's in Business major) I've accomplished QUITE A LOT for someone MINUS a masters or PhD in the art & science of computing (one of my biggest regrets? Not having gone on for masters OR PhD level in CS actually - you learn new things that give you more "power" thru knowledge others spent LIFETIMES on so we can stop "reinventing wheels" wasting time, using proven techniques instead)... apk
See subject & WHAT HAVE YOU EVER DONE I CAN SEE WITH YOUR ALLEGED 30++ YRS. OF SOFTWARE DEVELOPMENT?
I can put this out IMMEDIATELY in my favor" APK Hosts File Engine 9.0++ SR-4 32/64-bit:
http://www.start64.com/index.p...
HOW ABOUT YOU? That's only 1 of many I can LITERALLY EVIDENCE... can you??
Somehow?
Despite your "big talk", I think you can't show a DAMN thing & anyone can talk like you have!
HOWEVER:
I'll reserve FINAL judgement & give you a chance to back up your BIG words!
(& I've got FAR more Business Acumen under my belt than you do in the degree alone AND experience in the field around in on numerous levels + A BUSINESS OF MY OWN THAT'S SUCCESSFUL FOR A DECADE NOW!)
APK
P.S.=> You TRIED KNOCKING DATASTRUCTURES - big mistake that - it's one of the BEST COURSES A CS MAJOR TAKES (most informative) & that leads me to HONESTLY BELIEVE you're FULL OF IT, but you have a chance to redeem yourself above - go for it!
ANYONE CAN TALK - can you back up your BIG talk I wonder? We'll see... apk
"Seriously, that is another pissing contest you will lose" - by perpenso (1613749) on Sunday February 14, 2016 @12:35PM (#51506309)
"Also such childish arguments just make you seem insecure and desperate." - by perpenso (1613749) on Sunday February 14, 2016 @12:35PM (#51506309)
LMAO!
* You're the BIG TALKER - now back it up "perpenso" (fake name online using wannabe)...
APK
P.S.=> FACT: You haven't done a DAMN THING since you don't even HAVE the credentials you claim, whereas I do & it's easy to prove (I can point to where I went to school easily by athletic records alone if need be & I have actual PROGRAMS USERS HERE ON /. LIKE, want quotes of that too? ASK - I won't "hide" or evade things like YOU DO)
Man - proof's your evasion bullshitter - I can SAFELY say that now since I gave you a FAIR CHANCE TO BACK YOURSELF UP & YOU'RE EVADING IT - KNOW HOW MANY "WANNABE" BULLSHIT ARTISTS I've cut to shreds like YOU before? TONS... apk
"Seriously, that is another pissing contest you will lose" - by perpenso (1613749) on Sunday February 14, 2016 @12:35PM (#51506309)
SAME QUESTION REPEATED: WHAT HAVE YOU DONE I CAN SEE WITH YOUR ALLEGED 30++ YRS. OF SOFTWARE DEVELOPMENT?
Let's SEE it "big talker" - or is it more "OPEN SORES" thieving others code calling it "YOURS" or "patching" others MESSES @ most/best? Hmmm??
Why hide?
"Also such childish arguments just make you seem insecure and desperate." - by perpenso (1613749) on Sunday February 14, 2016 @12:35PM (#51506309)
LMAO!
* You're the BIG TALKER - now back it up "perpenso" (fake name online using wannabe)...
APK
P.S.=> FACT: You haven't done a DAMN THING since you don't even HAVE the credentials you claim, whereas I do & it's easy to prove (I can point to where I went to school easily by athletic records alone if need be & I have actual PROGRAMS USERS HERE ON /. LIKE, want quotes of that too? ASK - I won't "hide" or evade things like YOU DO)
Man - proof's your evasion bullshitter - I can SAFELY say that now since I gave you a FAIR CHANCE TO BACK YOURSELF UP & YOU'RE EVADING IT - KNOW HOW MANY "WANNABE" BULLSHIT ARTISTS I've cut to shreds like YOU before? TONS... apk
" that is another pissing contest you will lose. Also such childish arguments just make you seem insecure and desperate." - by perpenso (1613749) on Sunday February 14, 2016 @12:35PM (#51506309)
See subject & answer it - back it up vs. this "perpenso":
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Windows NT Magazine (now Windows IT Pro) April 1997 "BACK OFFICE PERFORMANCE" issue, page 61
(&, for work done for EEC Systems/SuperSpeed.com on PAID CONTRACT (writing portions of their SuperCache program increasing its performance by up to 40% via my work) albeit, for their SuperDisk & HOW TO APPLY IT, took them to a finalist position @ MS Tech Ed, two years in a row 2000-2002, in its HARDEST CATEGORY: SQLServer Performance Enhancement).
WINDOWS MAGAZINE, 1997, "Top Freeware & Shareware of the Year" issue page 210, #1/first entry in fact (my work is there)
PC-WELT FEB 1998 - page 84, again, my work is featured there
WINDOWS MAGAZINE, WINTER 1998 - page 92, insert section, MUST HAVE WARES, my work is again, there
PC-WELT FEB 1999 - page 83, again, my work is featured there
CHIP Magazine 7/99 - page 100, my work is there
GERMAN PC BOOK, Data Becker publisher "PC Aufrusten und Repairen" 2000, where my work is contained in it
HOT SHAREWARE Numero 46 issue, pg. 54 (PC ware mag from Spain), 2001 my work is there, first one featured, yet again!
Also, a British PC Mag in 2002 for many utilities I wrote, saw it @ BORDERS BOOKS but didn't buy it... by that point, I had moved onto other areas in this field besides coding only...
Being paid for an article that made me money over @ PCPitstop in 2008 http://pcpitstop.com/news/winn... for writing up a guide that has people showing NO VIRUSES/SPYWARES & other screwups, via following its point, such as THRONKA sees here -> http://www.xtremepccentral.com...
It's also been myself helping out the folks at the UltraDefrag64 project (a 64-bit defragger for Windows), in showing them code for how to do Process Priority Control @ the GUI usermode/ring 3/rpl 3 level in their program (good one too), & being credited for it by their lead dev & his team... see here -> http://ultradefrag.sourceforge... or here http://sourceforge.net/tracker...
Which ended up fixing a "bug" for them later, here -> http://sourceforge.net/p/ultra... via its implementation (partially, NOT fully yet as I outline it & use in my applications such as this one -> http://www.start64.com/index.p...
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* FROM a SMALL & ONLY PARTIAL list of my favorites of mine over time... see subject - answer it, "perpenso"...
APK
P.S.=> That's in addition to this that /. users actually like & USE (I have it quoted to back it - want that too? Ask):
APK Hosts File Engine 9.0++ SR-4 32/64-bit:
http://www.start64.com/index.p...
... apk