[plug] Mandrake on the rocks?

Michael Hunt michael.j.hunt at usa.net
Sat Jan 18 00:07:13 WST 2003


On Fri, 2003-01-17 at 16:36, Derek Fountain wrote:

> > I'm no Linux company financial expert, but, from what I have seen, Red
> > Hat has manged to make its profit by supplemental services, for which it
> > charges, eg, the fee-based RHN subscription service, the training
> > courses (which are not available in Perth, eg, the RHCT course), and
> > other such services, and, also, from expensive add-ons, eg, the RH
> > server software packages, etc.
> >
> > That is what I have read, anyway.
> 
> Basically right. Most of the money comes from supplying services to big 
> companies who want their Linux servers etc. maintained and looked after, and 
> who sometimes offer sponsored free software work. RHL are the IBM of Linux. 
> The point is there's only room for one or two of those. Mandrake never got a 
> reputation as a server OS supplier, only desktop. AFAICS they never had a 
> convincing way of making money from their efforts.

The problem with Mandrake is simply that the sins of past management are
having an effect on the profitability of the company today. The way they
are making money today is not helping them to cover there current and
past obligations hence the reason for filling for this 'interim'
bankruptcy.

They basically had the following options as I see it :-

1. Disolve the company. Result lots of unhappy shareholders, investors,
customers and community. Really this is a last option only as far as
management are concerned (as I read it IMHO) and I say kudos to anyonme
who wants to hang in during the tough times and try and make a thing
work. To often in our world people just turn away when the going gets
tough and use the opportunity to belittle the project, company,
individual etc.

2. Try and get some Venture Capital. Pretty difficult during this time
of economic downturn and after the dot.com bust. Mandrakes actions show
that this was not a possibility.

3. Declare Chapter 11 (or french equivalent) and try and renogitiate
debts, restructure, do whatever is neccessary to get back on track.

How you as an individual respond is entirely up to you. If you have
recieved direct benefit from Mandrake in the past you may want to put
your money where your mouth is. Others may consider that it is not
worthwhile flogging a dead horse. Only time will tell what becomes of
Mandrake. However one thing is certain, as open source (free) software
Mandrake will be around and available as long as people want it.
Mandrake will be developed as long as people want it. Mandrake will be
supported as long as people want it. And none of this requires that
Mandrake as a company still be around.

Michael Hunt



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