The Future of Software: Why Open Source is the Safe Bet Larry M. Augustin
[email protected] Director Appcelerator, Compiere, DeviceVM, DotNetNuke, Fonality, Hyperic, Linux Foundation, Medsphere, Pentaho, SugarCRM Investor/Advisor Dasient, Eloqua, Funambol, Mindtouch, MuleSource, SpringSource OpenOpen SourceSource isis thethe SafeSafe BetBet ¾ 1980: No One Ever Got Fired for Buying IBM ¾ 1990: No One Ever Got Fired for Buying Microsoft ¾ Today: No One Ever Got Fired for Buying Open Source ¾ Open Source is the safe choice: z New investment continues in open source z Businesses are adopting Open Source z Leaner budgets favor Open Source Investment in Open Source VentureVenture FundingFunding toto OpenOpen SourceSource 600.00 60 500.00 50 400.00 40 300.00 30 200.00 20 100.00 10 0.00 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 US$ Raised (MM) Number of Deals Source: The451 Group MoneyMoney FlowFlow IntoInto OpenOpen SourceSource ¾ 2008: the second best year in history for open source funding z US$458.8MM invested in Open Source companies z Q1 saw a record $203.75MM to Open Source ¾ $330MM/year average since 2000 ¾ $2.95B raised by open source startups since 2000 thru 2008 ¾ Significant deals in Q4: z JasperSoft’s $12.5m z Open-Xchange’s $9m z New Relic’s $6m z Lucid Imagination $6m ¾ Series A deals (5) made up more than half of Q4 deals: z DotNetNuke z Lucid Imagination z Cloudera HealthyHealthy OpenOpen SourceSource M&AM&A Year Deal Value Notable Deals Volume 2008 28 US$1.57B Sun-MySQL, Nokia-Trolltech, Red Hat-Qumranet, Cisco-PostPath