The Open Road

Read all 'open source' posts in The Open Road
December 22, 2009 3:37 PM PST

Red Hat's Q3 earnings defy gravity

by Matt Asay
  • 1 comment

Someone needs to let the folks in Raleigh know we're in a down economy still. While much of the tech market lingers in the doldrums, Red Hat announced another strong earnings report for its fiscal third quarter 2010.

Here are some of the headline numbers:

  1. Revenue of $194 million, an 18 percent increase year-over-year.
  2. Subscription revenue topped $164 million, up 21 percent year-over-year (and 85 percent of the company's revenue).
  3. Deferred revenue climbed 23 percent year-over-year to hit $619 million.
  4. All 25 accounts up for renewal in the quarter renewed, and at 120 percent of value.

Small wonder, then, that the company elected to repurchase 1.9 million shares of common stock for $52.3 million.

While Red Hat's revenue growth rate has been sliding for some time, as The 451 Group has detailed, Red Hat's prospects remain bright. Piper Jaffray, for example, recently highlighted a range of factors contributing to its "Overweight" rating on Red Hat's stock:

Recent conversations with 40 Red Hat industry contacts point to an improved operating environment, an ongoing acceleration in the pace of Unix-to-Linux migrations, and Q3 results essentially inline with plan. We continue to see longer term catalysts for outperformance based upon the recently introduced virtualization products (RHEV), upsell to the premium priced Advanced Platform, adoption of cloud computing, and broadening awareness of open source offerings

In my own conversations with Red Hat executives, it's clear that the company has plenty of headroom in both its JBoss business (8 of the top 25 deals in the quarter included a JBoss component, and Red Hat CFO Charlie Peters said that it continues to grow faster than Red Hat's core RHEL business), but particularly in its virtualization strategy. Virtualization is effectively a way for Red Hat to sell much more deeply into existing accounts. Much deeper.

But Red Hat is also seeing traction in its nascent cloud-computing initiative. In the third quarter, Red Hat saw a major movie studio building a private cloud with its technology in addition to NTT choosing Red Hat for its cloud infrastructure, plus the signing of a six-figure Red Hat Enterprise Linux-based cloud deal.

Clearly, there is gold in the Linux hills for Red Hat, gold that doesn't seem to be running out, especially as Red Hat improves its ability to get free-riders (CentOS and unpaid RHEL users) to pay, as it did this quarter with two sizable "free-to-paid" deals. The only negative in Red Hat's quarter seems to be a back-loading of revenue, meaning that more deals closed at the end of the quarter than normal.

But Peters said that cash flow for the year would come in at the high end of his former guidance, so things remain on track.

In light of Red Hat's strong performance in its core Linux business, it's somewhat strange to see Novell reorganizing to emphasize its proprietary products instead of hitting hard on its still-solid Linux business.

But perhaps there's only room for one Linux vendor in the data center. Based on the last several years of Red Hat performance, that vendor appears to be Red Hat.

December 22, 2009 12:37 PM PST

Canonical's opportunity to simplify Ubuntu

by Matt Asay
  • 12 comments

Ubuntu has led the Linux community's efforts to improve on form, not simply function, and thereby make the Linux experience as good or better than Mac OS X in terms of usability. Mark Shuttleworth, founder and CEO of Canonical, the company set up to shepherd development and commercialization of Ubuntu, is the heart of that effort.

Mark Shuttleworth, provocateur

(Credit: Matt Asay)
As announced on Thursday, however, Shuttleworth is resigning as Canonical CEO to focus on improving the Ubuntu user experience:

From March next year, I'll focus my Canonical energy on product design, partnerships and customers. Those are the areas that I enjoy most and also the areas where I can best shape the impact we have on open source and the technology market.

Is this good or bad for Ubuntu? And what about Canonical?

Canonical is reportedly doing $30 million per year in sales, and is working on some significant projects that may establish it as the de facto Linux distribution for Netbooks, if it isn't already. (Ubuntu is arguably the community choice for personal computers.)

Even so, Linux still has a long way to go to match the user experience of Mac OS X, or even Windows. Shuttleworth has given me a sneak peak of his vision for where Ubuntu can go from a UI perspective.

I was blown away. This is a man who "gets it."

Even so, he and the Ubuntu community still have a ways to go to match Microsoft or Apple in user experience, and certainly in market share. To get there, Ubuntu needs Canonical, and Canonical needs Shuttleworth fixated on improving Ubuntu's user experience.

When I asked what his resignation as CEO means for Ubuntu, and his involvement with it, Shuttleworth responded:

I don't expect to be less visible, just have stronger management for the business units.

As reported by CNET and as reported on Canonical's corporate blog, Jane Silber, currently Canonical's COO, will replace Shuttleworth as CEO. A search for a new COO will commence in the first few months of 2010.

This, I believe, is an opportunity for Canonical to tighten its focus. While Shuttleworth suggests that Silber's appointment "doesn't mark a change of direction," perhaps it should. With over 300 employees and products that span mobile, Netbooks and other personal computers, cloud computing, enterprise servers, and more, Canonical has its fingers in a lot of pots.

It's possible that the operations-minded Silber may channel Ubuntu's ambition into a few products where Ubuntu can dominate.

When I asked her for comment, Silber indicated that the move is more evolutionary than revolutionary:

This move should not be read as a precursor to a paring back in markets or as a dramatic shift in strategy. We continue to be committed to making Ubuntu the best possible platform, and to ensuring that Canonical provides high quality engineering, online and professional services to Ubuntu partners and customers worldwide....

I will still bring an operations discipline to company, but I will assume more responsibility and authority for the overall performance of the company including, I expect, greater participation in executive level sales and business development.

That involvement--i.e., working with customers and hearing them demand focus and discipline--may well prod Silber to instigate the changes she initially has disavowed.

Red Hat is instructive. Though many of us would like to see it broaden its focus, the company remains rooted in the enterprise server and middleware markets. Canonical, in my view, should take a lesson from Red Hat and channel some of its energy into fewer markets, markets where it can thrive.

Regardless of what happens, stay tuned to see how Shuttleworth's design aesthetic, now set to overdrive, can impact the cozy duopolies in "desktop" (Apple and Microsoft), servers (Red Hat and Microsoft), and more. With more time to focus on what customers and partners want, Canonical and Ubuntu may be set to take a more commanding position in the market.

December 22, 2009 7:46 AM PST

Google--not necessarily 'more open than thou'

by Matt Asay
  • 9 comments

Can you find the openness in Google Search?

Google is perhaps the world's largest open-source company. That does not, however, make it the most open. Not even if Google says it's so.

The company is fond of believing itself different. And perhaps it is. For all of its stumbles over privacy concerns, it's still the company that insists it will "not be evil." I give its executives the benefit of the doubt that it really does want to be open, as revealed in a blog published Monday by Senior Vice President Jonathan Rosenberg.

But the irony of Google's position is that it's very open...until it needs to make a buck. Or a billion of them. At that point it's just as closed as its competitors. Perhaps more so.

Rosenberg doesn't shy away from the inconsistency, arguing that Google is closed when it's for its customers' own good:

While we are committed to opening the code for our developer tools, not all Google products are open source. Our goal is to keep the Internet open, which promotes choice and competition and keeps users and developers from getting locked in. In many cases, most notably our search and ads products, opening up the code would not contribute to these goals and would actually hurt users. The search and advertising markets are already highly competitive with very low switching costs, so users and advertisers already have plenty of choice and are not locked in. Not to mention the fact that opening up these systems would allow people to "game" our algorithms to manipulate search and ads quality rankings, reducing our quality for everyone.

Am I the only one that just had Napoleon of "Animal Farm" flash through their minds while reading that statement? Some animals are more equal than others, and some companies know better than others when to keep code closed.

It's not that Rosenberg is wrong. It's just that his embarrassment at admitting Google likes the revenue that results from closed systems ties his arguments up in knots, as Gartner's Brian Prentice highlights:

I don't think Rosenberg is making any attempt to mislead. I think he's thinking out loud and trying to reconcile the paradox he's created for himself--that open systems win even though Google's success is so clearly the result of being strategically closed.

Prentice adds further color:

The truth is that closed systems still win. Open systems, practically speaking, are basically good for making others lose.

The art of business in the 21st century is figuring out how to open up your suppliers' and competitors' business while keeping yours tightly sealed. And in that endeavor Google has proven highly successful.

From Red Hat to Facebook, from Google to Microsoft, from MySQL to Oracle, the same lesson applies: openness is exceptional for creating developer interest, lead generation, and many other things, but some element of proprietary still pays the bills. The big ones, anyway.

No exceptions.

Google is a fantastic company that groks the strategic benefits of openness better than most, and certainly better than its lumbering counterpart in Redmond.

But it's not exceptional in understanding open on-ramps and closed exits. Other important businesses like IBM have been leveraging such principles for years (even before Hewlett-Packard's Martin Fink explained the strategy in "The Business and Economics of Linux and Open Source").

Google isn't original with the business strategy. It's just better at it than most. It's open...until closed takes over to pay the bills.

Follow me on Twitter @mjasay.

December 21, 2009 5:43 AM PST

Is it Ballmer's fault?

by Matt Asay
  • 150 comments

Microsoft is in significant disarray, fettered by its destkop dominance as the world goes mobile. Would this have happened anyway, or is Microsoft CEO Steve Ballmer to blame?

Developers! Developers. Developers? Developers!?!?

Ballmer, after all, knows how to sing to developers, but he doesn't really speak their language. Former Microsoft CEO and co-founder Bill Gates did. Now, more than ever, Microsoft needs to get in front of developers but finds itself playing catch-up.

Gates announced his resignation back in 2006 and formally discarded his full-time Microsoft duties in 2008. But it has been a long time since Gates' hand was full time on the steering wheel.

That's a problem for the world's largest software company. It was Gates who saw the threat (and opportunity) the Internet posed for Microsoft--drafting his excellent "The Internet Tidal Wave" (PDF) memo in 1995--and alerting his troops to an array of threats that saved Microsoft from ruin...while helping it to ruin many others on its path to billions in profits.

Gates oversaw Microsoft's early, largely successful forays onto the Web. Ballmer has shepherded Microsoft to vanishing mobile market share (now just 7.9 percent of the market), a hesitant tiptoe into software as a service, and a general sense of retreat in emerging markets.

Hence, while former Microsoftie Don Dodge talks up his new employer, Google, with its food perks and 401(k), it's really the company's vision that has him jazzed:

Google has made three big bets on the future of computing; Chrome (browser), Google Apps (cloud), and Android (mobile). The trends are pretty clear. All the exciting new applications are running in the browser, with application code in the cloud, and the cell phone as the platform....2010 will be the year that enterprises of all sizes start their transition to Gmail and Google Apps, and take their first steps towards the vision of the future.

Dodge couldn't sell this sort of vision at Microsoft.

Microsoft has been playing catch-up for many years, but at least did so successfully under Gates. With Ballmer, there's a sense that Microsoft is always a half-decade too late on critical initiatives like search, open source, and mobile.

So is the problem Ballmer, or is Microsoft simply doomed, blinded by its own success with personal computers--a blindness that no CEO could overcome?

I hate to ascribe so much importance to any one person, but just as Steve Jobs is the soul of Apple and its revolutionary leader, so, too, was Gates the heart and mind of Microsoft. He understood developers, and they rewarded his belief in them by making Microsoft the world's largest software company.

Microsoft is the poorer for Gates' departure.

Even as I type this, Google keeps moving into the future while gouging Microsoft's past. TechCrunch is reporting that Google is acquiring DocVerse, which enables people to collaborate on Microsoft's Office documents. Microsoft is under siege.

This is just the beginning.

Developers are coding for Google projects, Twitter, and other new-style Web applications. Morgan Stanley is predicting the mobile market will be twice the size of the "desktop" market. Will Google someday dwarf Microsoft in size and influence?

Unless Ballmer can discover his recessive developer gene, the answer my well be yes.

Update at 2:10 AM Pacific on Tuesday: Newsweek predicts the ouster of Ballmer in 2010, but ZDNet's Mary Jo Foley cautions "not so fast."

Follow me on Twitter @mjasay.

December 19, 2009 1:10 PM PST

Hungary votes for open standards

by Matt Asay
  • 3 comments

Many governments, particularly those in developing nations, are increasingly legislating preferences for open-source software. A much smarter approach may be that recently adopted by Hungary, however, which has mandated the use of open standards.

Hungary's flag

Smarter, because for all the noise about open-source mandates in places like Latin America, I've been hearing from contacts in these markets that government IT workers have continued to use the software they prefer, not the software mandated by legislation.

And smarter, because it focuses on creating real competition in government IT, which arguably is a much better way to keep vendors honest and citizens empowered than an open-source license. If you can have both, even better, but the right place to start government policy is in the realm of standards.

The Open Standards Alliance proposed and lobbied for the change to Act LX of 2009 on electronic public services within Hungarian law. The goal? To "promote the spread of monopoly-free markets that foster the development of interchangeable and interoperable products," thereby opening up the market to "broad competition."

It's a laudable goal, and arguably much better than those efforts to mandate a particular licensing approach to software, which could result in adoption of software that doesn't work as well as its proprietary peers.

I like the way the Open Standards Alliance describes it:

Any device using a standard plug can be connected to the electric power supply by means of a wall socket. Connecting a television set or a refrigerator to the mains does not require the expertise of an electrician. And if the refrigerator is unplugged and a television plugged in instead, the television will work, too.

Similarly, the two types of portal set out by Hungarian legislation (the administrative portal and the client portal serving individual users) will function as statutory standard 'sockets' in intercommunication between computers.

In other words, the law isn't picking winners. It's not deciding between open-source and proprietary software. It's actively fostering competition between open and closed systems.

The devil is in the details, of course, but the approach is promising. There are still questions to be answered, e.g., will Microsoft file formats like .docx be considered open standards? Some suggest the answer is yes.

Does this degrade the value of the legislation?

On a related note, it's also very possible that "open standard" may be redefined, as Glyn Moody points out may be happening with the European Interoperability Framework, to include not-so-open standards.

Even so, it's good to see a government focused on the interconnections between software, rather than the licenses thereof. As we increasingly see with open source in cloud computing, licenses matter little for ensuring openness. Standards, however, continue to have a big role to play.

December 18, 2009 6:35 AM PST

Third phase of open source: customer participation

by Matt Asay
  • Post a comment

BUENOS AIRES--Open source has successfully navigated its first two phases of development and adoption. We're now entering the third, and possibly final, phase: the time when consumers of open-source software also become producers.

Can enterprise IT make the leap?

Enterprise IT to give open source a piece of its mind

Billions of dollars in IT investment are at stake. Perhaps even more importantly, billions of lines of code could be, too. While significant software products are written for sale, arguably much more software is written by enterprise IT to run businesses as diverse as Safeway stores and Barclays banks.

Unlocking and distributing the value of that enterprise IT, developed to run behind the firewall, is the next big step for open source.

As Red Hat's general manager for Latin America, Julian Somodi, and Red Hat's Latin America marketing director, Martin D'Elia, speculated on Thursday at a lunch meeting here in Buenos Aires, open source's greatest value is unlocked when one moves from being a mere consumer of open-source software to also being a co-producer of such software.

It's a message Red Hat CEO Jim Whitehurst has been sounding for the past two years, and it may finally be catching on.

Today, enterprise IT is adopting and using open source on a grand scale. Gartner finds that 85 percent of enterprises are using open source today. (My hunch? The other 15 percent are, too, but the CIOs surveyed simply didn't know.)

The percentage contributing back? I've seen no data on this, but my personal, anecdotal evidence suggests that few enterprises contribute back to open-source projects, for a variety of reasons. Legal is probably the biggest, as enterprise IT weighs the risk of exposing itself to potential lawsuits from faulty or IP-infringing code.

This concern would appear more intractable had the vendor community not already navigated it in the second phase of open-source development. Vendors had the same concerns that plague enterprise IT today, and ultimately discovered that the value of open-source participation trumps its risk.

As a sign that we're coming to the close of this second phase, even laggards like SAP have announced significant progress in their open-source development efforts.

The same benefits that attracted SAP et al. will propel enterprise IT into this third and final phase of open-source participation, too.

Which benefits?

For starters, open-source software development offers a quicker path to resolution of bugs, a recent analysis finds.

It also enables finer-grained control and customization, as the French army has discovered with Mozilla Thunderbird, the customizations of which can be shared so as to offload the burden of supporting the code.

It might well be, as Gartner's Brian Prentice argues, that ultimately only vendors care about open source. But I think this view only rings true if enterprise IT remains blinded to the big benefits that derive from open-source participation, rather than mere consumption.

While not every company will have a great experience all of the time (witness, for example, the problems Farelogix had developing community around its open-source travel management point-of-sale tool), enough enterprises are experimenting that to suggest the third-phase train is leaving the station for good:

JP Morgan Chase led the way by open-sourcing its AMQP project. The Chicago Mercantile Exchange has also jumped into the fray with Linux. Reuters has its OpenCalais project, a project that is even being used here at CNET.

And so on. It's happening. It's real. And for those enterprises that jump into this third phase of open-source participation, the benefits promise to be palpable.

December 18, 2009 6:07 AM PST

An integrated Atlassian thanks to OpenSocial (Q&A)

by Matt Asay
  • 2 comments

Atlassian is one of those curiosities within the open-source world: like Apple, Atlassian doesn't tend to release its software as open source. But as with Apple, the open-source world loves to use its software.

Jay Simons, Atlassian

(Credit: Atlassian)

From JIRA to Confluence and just about everything in between, Atlassian's software is broadly deployed within open source. Intriguingly, Atlassian turned back to that open-source community to integrate its own applications using OpenSocial, as I learned in an interview with Jay Simons, Atlassian's vice president of marketing.

Many people tend to think of OpenSocial as a way for Web sites like LinkedIn to share data with the Web, but Atlassian chose to use it to unify its applications behind the firewall. Why?
Simons: Roughly a year ago, Atlassian took a hard look at improving the integration between our eight products and upgrading the dashboard implementation of Jira, our popular issue tracker. Jira had a decent dashboard, and portlets based on our own technology that customers--and often some of our own engineers on different teams--sometimes struggled to use.

We had a choice: stick with what we have (slightly dated, but solid portlet technology), but make it bigger and better (engineers love this one, usually), or go open.

Asking seven independent teams to learn Jira's clunky portlet stack so they could integrate their products with Jira wasn't a popular option internally, and didn't really buy us much, so we intrinsically preferred the open option. There have been a few different standards for portlets over the years--JSR-168 and WSRP the most well known--but they all felt long-in-the-tooth. And then we took a close look at OpenSocial.

Many initially heard about OpenSocial a couple years ago, when it was billed as a Facebook killer--a shot fired by Google, echoed by the dozens of other consumer social networks scrambling to catch up to Facebook.

OpenSocial defines two concepts--an API for defining and working with social data (profiles, attributes, relationships) and specification for gadgets. OpenSocial's fundamental promise was interoperability--write an application once and host it in multiple social networks. Sound familiar? That's what we wanted to do with our own products.

A year later, and we've shipped OpenSocial in the guts of both Jira, our issue tracker, and Confluence, our enterprise wiki, thanks in large part to Apache Shindig, an open-source reference implementation of the OpenSocial container. Both Jira and Confluence are now OpenSocial gadget containers and producers, and the rest of our portfolio produce gadgets these two products can consume.

The benefits to Atlassian should be clear, but the benefits to our customers are also immediate: display build activity from the Bamboo build server, search results from the Confluence wiki, and recent commits to the SVN through Fisheye on a Jira dashboard that organizes that information alongside the issues and tasks related to an individual project. Everything a development team needs on a single page.

So OpenSocial wasn't a way for you to connect Jira with LinkedIn (or kill Facebook, for that matter)? What are the top-three reasons for choosing OpenSocial instead of some alternative integration technology?
Simons: One, it's open. OpenSocial's openness means it is consistently benefiting from the contributions of the community. Dozens of companies now are starting to work with it, from Atlassian to Google, and the spec is evolving quickly. Gadgets are an important ongoing part of Google's strategy across several products, so our customers benefit from Google's investments and innovations, as well as our own.

Two, easier for developers to grok. Writing portlets for Jira was an art form. Gadgets are far more pervasive, and the technology underpinning them--HTML and XML over HTTP--is the linqua franca of the Web. OpenSocial meant our products were immediately more accessible to more developers.

Three, instant interoperability. We not only got interoperability within our own portfolio, but with other OpenSocial gadget containers, like iGoogle and Gmail, and with hundreds of other OpenSocial gadgets, from Box.net to Remember The Milk.

What's next for OpenSocial?
Simons: The OpenSocial community is quite active. The Apache Shindig project is also quite active. The OpenSocial specification 1.0 (it's on v0.9 currently) should be released in January 2010.

What originated as a technology for consumer social networks, is quickly gaining traction amongst enterprise software vendors, and enterprises. We've created a site to explain how we use it, and hopefully we'll see more enterprises use it well beyond the consumer Web for which it was originally envisioned.

The more the merrier.

December 17, 2009 7:02 AM PST

Could the Google train hurt Firefox?

by Matt Asay
  • 33 comments

Despite all the handwringing about Microsoft's market clout in the European browser war, the real threat to Firefox may be Google, not Microsoft. Even as Microsoft's browser market share deflates to 64.36 percent, Google has upped its game with its increasingly extensible Chrome browser.

Chrome to crash the IE/Firefox party

For those of us who cling to Mozilla Firefox because of its library of excellent add-ons and extensions, suddenly we have another viable, open-source choice.

Internet Explorer remains a viable threat to Firefox due to Microsoft's heft in operating systems, which helps to create enough inertia that most Windows users who start with IE simply never discover that they have browser alternatives.

But while IE plays catch-up to Firefox in sheer extendability and third-party innovation, the real contender could well be Google Chrome, which marries open source with a strong developer/extension story and bests just about everyone in performance.

I love Firefox, but mostly because I love the third-party innovation that Firefox enables. Add-ons like ForecastFox (in-browser weather updates), AdBlock Plus (blocking ads), and so on make my browsing experience awesome.

Such add-ons, however, tax the resources of my MacBook Pro. Considerably.

As I type this, I have 15 tabs open and have 22 add-ons installed. As a result, Firefox is eating up roughly 30 percent of my CPU, even beating resource hog Java.

(Credit: Matt Asay)

That's a lot of juice to power my browser, even when considering that most of my work is done within the browser (from common browsing to Zimbra e-mail to Google search to...you name it).

According to TechCrunch, development of add-ons for Google Chrome is much easier than it is for Firefox, and those add-ons apparently no longer constrain Chrome's performance in the same way that Firefox add-ons do for Firefox.

If true, then Mozilla needs to be doing a lot more than simply opening up a Firefox add-on marketplace in 2010, as The Register reports it will. Instead, Firefox should be heads down on improving browser performance.

A marketplace makes sense for enriching the Firefox developer community and, hopefully, diversifying Mozilla's revenue sources so that it's not so heavily dependent on Google.

But given that Google Chrome's improved extensibility is aiming squarely at Firefox, Mozilla has more than a monetary problem. It has a serious competitive threat looming, one that will only be won by significantly improving performance while maintaining its excellent track record with developers.

I'm confident that the Firefox team can do it. I'm equally confident that it must. Yes, Mozilla marshals a more diverse and robust open-source community around Firefox than Google does for Chrome. But users arguably won't care.

The Google train is coming, and it's not going to stop...not even for a longtime ally like Firefox.

Follow me on Twitter @mjasay.

December 16, 2009 7:39 AM PST

Microsoft crippled by its antitrust past

by Matt Asay
  • 50 comments

Once a monopolist, always a monopolist? Not in Microsoft's case. While no one will accuse Microsoft of being a forlorn Tiny Tim, it's also no longer the Ebeneezer Scrooge that it once was. In fact, Microsoft seems haunted by the ghost of monopolies past, to the point that it has lost its ability to fight on equal terms for new markets.

Look at the markets the U.S. government sought to open by suing Microsoft for monopolistic practices. Microsoft's market share in media players, Windows, etc. remains largely unaffected by the government lawsuits.

I miss the smell of monopoly in the morning

Where Microsoft has lost market share (as in Web browsers and mobile), the competition hasn't relied on consent decrees and the like to win. Firefox wins because of its community development and distribution. Apple's iPhone and Google Android are trouncing Windows Mobile because they significantly change the rules of engagement for mobile while providing a better experience.

Government, in other words, probably solved little. But what it did was create a culture of caution within Microsoft that stultifies its ability and desire to compete. (We should note that just today, the European Commission formally ended its browser-focused antitrust pursuit of Microsoft, following concessions by Redmond.)

Microsoft's competitors, like Google, thrive in the wake of this fear, uncertainty, and doubt that plagues Microsoft. Ironically, competitors like Google do many of the same things that got Microsoft into hot water with the U.S. Justice Department.

Google et al. are free to compete. Microsoft is not.

Granted, this constricted freedom may be more psychological than real. As a journalist friend said to me on Tuesday, "Everybody thought Microsoft laughed off the antitrust thing. But I think it really did take the wind out of their competitive sails."

I do, too. In fact, a few years ago a friend and I set out to start a business delivering Microsoft Office-like functionality to mobile phones, which we ultimately abandoned. We didn't worry about Microsoft suing us for patent or copyright infringement. My friend had successfully sued Microsoft for anticompetitive practices in the Caldera litigation. We knew Microsoft's hands were tied by its antitrust settlement.

Microsoft is not the same company it once was. It's under siege, and seemingly incapable of responding. I think we're the poorer for it.

No, this isn't a paean to Microsoft monopolies. Rather, it's a plea for a Microsoft that competes vigorously to win.

Not one that repents in sackcloth and ashes for the "sin" of competing with open source. Not one that is continuously constrained by various antitrust authorities even as it erodes market share for the products in question.

I don't want a monopoly. I understand the important competitive principles that Mozilla and others are fighting for in the ongoing browser/etc. wars.

But I want a competitor again. Microsoft has lost its fight. This should concern us.

It should bother us because companies like Google need to be kept on their toes. It should nag at us because Microsoft writes great software that is comparatively easy to use, and we need its influence on the market.

I hardly use Microsoft software, preferring Apple and Google and open source. But I'd still like Microsoft's influence on the market, and not as a milquetoast competitor too afraid of antitrust shadows to thrash a competitor. Man up, Microsoft.

December 15, 2009 12:15 PM PST

Microsoft apologizes to Drupal community...for competing

by Matt Asay
  • 14 comments

This post was updated at 2:30 p.m. PST in light of Microsoft's apology, which confirmed the anti-Drupal ads.

Microsoft has launched an advertising campaign against Drupal, an open-source Web publishing system, to promote its WebsiteSpark program. Some will see this as a devious plot on Microsoft's part to crush open source beneath its monopolistic feet.

But here's a more rational explanation: Microsoft competes with Drupal. This is what competitors do: compete.

Here's what Microsoft is accused of doing:

The other day I was checking Listology.com for the Drupal website list. But what attracted me more on the page was the small Google adsense block with the title "Forget Drupal and get:"...

Oops, here is an advertisement against drupal on a very page that lists all drupal websites. But the biggest surprise was that the advertisement was from none other than Microsoft. Clicking the advertisement takes you directly to the page of Microsoft's new product - Webspark, on Microsoft.com.

The horror! The horror!

Microsoft's WebsiteSpark program is designed to make it easy for Web developers to work with Microsoft technologies like .Net. It's hard to find anything nefarious in this, but some see Microsoft's alleged attempts to steer Drupal developers to WebsiteSpark as evidence that Microsoft is more worried about Drupal than it is Google, since it's using Google AdWords to place the ads.

As for Microsoft, no sooner had the community reared its incensed head than Microsoft's Mark Brown dashed out an apology:

I want to offer my sincerest apology for this. I have contacted Google and we are working on having this ad pulled as soon as possible. In addition we are working internally to ensure this doesn't happen again.

Really? For what? Having a business? For competing in the same way the Drupal community does?

This is silly. Microsoft is simply using the advertising channel open to it on the Listology Web site, trying to nudge developers its way. Acquia, the company set up by Drupal's founder to commercialize Drupal adoption, is doing the same thing.

Both are simply advertising where they hope to have a significant return on advertising dollars spent. It's called business. It's not personal.

It's the very same reason that Acquia advertises on Joomla.org, a competing open-source Web publishing system, as Joomla leader Elin Waring notes.

Take off the hair shirt, Microsoft. It doesn't become you.

After all, Microsoft is also promoting Drupal in Google searches:

A Jekyll and Hyde moment for Microsoft? Not really. The Web Platform team, of which Mark Brown is part, undoubtedly wants Drupal developers building on Windows.

But guess what? The WebsiteSpark team wants such developers building on Microsoft's Web technologies. It's a big company with different teams and different priorities.

In other words, it's nothing about which to be concerned. In fact, I'd worry more if Microsoft were doing the kumbaya thing with every open-source project, forgetting its fiduciary duty to compete vigorously...including against open-source competitors.

There is no free lunch with open source and there is no free pass for open source. We're grown-up boys and girls. We can compete. As for you, Microsoft, stop pandering to the hurt feelings of open-source developers who should know better.

advertisement

About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

Add this feed to your online news reader

The Open Road topics

Most Discussed