systems management

Sep 24 2008

Systems management, what will happen when the VCs want their money ?

Tarus is happy not to have VC's on his back. He doesn't want to be responsible for turning a 15 Milj investment into a 150 Milj cashout. Others chose to go that way.

Back when he wrote the article the chances were small that he already knew that Qlusters was going to be shut down with still sooo much money in the bank, but the VC's wanted it back.

So how do open source companies plan on making those tenfold roi reality.
Apart from selling out to a bigger company I think thats a very difficult task.
Especially when you keep in mind how to manage both the Open Source community and your customers. The figures he mentions that VC's require surely start pushing vendors into violating Fabrizio Capobianco rules.

Now the story changes when indeed you cn go to a model where you are selling a large scalable service to your customers, even with microsized payments it becomes a possibility, but that's a totally different business model from what e.g. the Open source systems management shops are doing .

So will the Zenoss, Hyperics or the Groundworks of this world survive the demands of their VC

Luckily these projects are Open Source, so when the company dissapears, the project can continue, and grow even better. Like openQRM did