Business models

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Being pirated will double your sales

We know it's true, now it's been scientifically proven. (At least pending an independent study for confirmation?) When a book gets onto p2p networks, there is a sales peak, not a decline:

Brian O'Leary, founder of publishing consultancy Magellan Media, measured the impact of peer-to-peer piracy on titles published by the US house O'Reilly for 71 weeks. At today's Tools of Change conference in Frankfurt, the first in Europe, he revealed that while non-pirated books (both print and e-books) showed a "trending decline" after an initial sales peak, the sample titles saw a second peak at the onset of piracy. From week 19, which is on average when titles began to be pirated, to week 23, which was the average second peak, sales rose 90%.

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Comments on "Hacking Business Models" by Monty and Zak

As mentioned previously, Monty Widenius is starting his new company based on some interesting premises. With Zak Greant they have co-authored a pamflet where they outline a blueprint for Open Source companies. In many ways this could be considered the "Dogme 95" of Open Source businesses:-)

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It seems January and February were just completely taken up by customer engagements. I don't know if it is due to the recession or what, but we who are selling MySQL are just very busy right now. Towards the end of February I finally got on top of my life again, and on the bright side, I took almost a full week off from work, just to get even with all the overtime I accumulated.

This is old news now, but I still want to make a note of these historical events for my own blog too. If you're like yawn... then don't read it. OTOH, seems like I'm in good company commenting on this this week :-)

So some weeks ago we were hit by the surprising news that Mårten will leave Sun, just a few days after Monty had decided to do so too.

Let's make some comments in ORDER BY DESC chronological order.

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Commercial open source business strategies in 2009 and beyond

I realized I don't often do what bloggers often do, link to other bloggers. But this Matthew Asletts post is really good, I seem to agree with it and it touches the same issues I just wrote a mini-trilogy about, namely the evolution of future Open Source business models. Of course, Matthew should know he analyzes Open Source companies for a living, I'm just a guy with one book.

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The Open Sourcing of Symbian by Nokia

I was sitting in a train in the middle of rainy Ireland when I received a mail that Nokia has bought Symbian and is releasing it as Open Source. I didn't believe a word of it. But the web was full of news about it, so it was true. This is an amazing turn of events that I didn't anticipate at all. (You may or may not know that in my previous job I was heavily involved with Symbian programming. Ironically, one reason I left just 6 months ago is that I wanted to work in an Open Source environment :-)

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The MySQL model

(This blog entry was written and co-posted together with my friend and the CEO of Warp Networks and EBox Platform, Ignacio Correas. Copyright notice: Please note that pictures embedded in the story by Ignacio are certainly not Creative Commons licensed anything.)

Dolphin Ignacio: I have always considered MySQL as the best model for open source companies. Their approach to the market, the execution of different business models, their relation with the community or the way their work internally as a virtual organization have shown an innovative and successful example of how an IT company in the 21st century can be managed.

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Sun - MySQL Tour comes to Helsinki Open Tuesday on May 6th

I'm hosting a MySQL Tour event in Helsinki, probably this is the last stop on the tour so it will end in the same city where MySQL got started. If you are nearby, please pop in!


MySQL Tour visits Open Tuesday in Helsinki May 6th

This winter we haven't had as many Open Tuesday meetings as we had last year,
but we will finish off the season with meeting Sun and MySQL on May 6th at
18:00, in the usual place Club Ahjo, Bulevardi 4, Helsinki.

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Scale to everywhere

MySQL being acquired by Sun has of course put a lot of focus on the success of MySQL so far, but it is also interesting to think what success will mean as part of Sun too. In this light a recent interview of MÃ¥rten by Business Review Online about the acquisition was inspiring. (As words from MÃ¥rten usually are!)

"It's a marathon, not a sprint," he said. "If a 15-year-old downloads MySQL now, when do we get our money? In about 15 years' time when he is head of IT at a company and he loves MySQL. But in many cases it will happen sooner than that."

"In open source we say fail fast, scale fast. Many web 2.0 ideas will fail, but when Google or Facebook [two of MySQL's biggest customers] get it right they suddenly need to scale like crazy," Mickos said. "Open source is the only model where they can scale fast on exactly the same code base; it's the same product. All of the [commercial] database players have free versions, but when you need to scale you need a slightly different version [of the database]."

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