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Open Source Companies on Their Own Two Feet

Lora Bentley

Sun Microsystems' $1 billion purchase of MySQL is "one of the most significant open source acquisitions ever," according to 451 Group's Raven Zachary, who is quoted in a story at CNNMoney.com. It surpasses the $675 million with which Linux distributor Red Hat snagged Cygnus Solutions in the late 1990s.

 

Sun's buy is one of several open source purchases in recent months, and regardless of whether the consolidation trend continues, Zachary says MySQL's big paycheck is a sign that open source as a business model is maturing:

Zachary says venture capitalists that began to load up on open-source companies earlier this decade now see their companies maturing enough to attract buyers. He says the trend could taper off as open-source investments slow.

 

But MySQL's [Kevin] Harvey says open-source companies are getting the customers and growth they need to attract buyers on their own -- making decisions without heavy influence from VC investors.
Yet another sign of growth for the business model? Alfresco and SugarCRM are working toward IPOs, the story says.


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