Author Topic: Venture Capital funding for the development of Open-Source projects  (Read 13476 times)

saborion2

  • Hero Member
  • *****
  • Posts: 548
    • View Profile
    • Orion Resources International
For the Attention of: "kimhav, Global Moderator: I recalled we were having some discussions in one of these threads with regards to Methods of Financing for the OS/2 World Foundation (given that there is a saying that there are nothing like free lunches...  ;D); the Bounties et cetera et cetera; and, while we are on the subject matter as stated above Re: "XML Parsing"  :) - I now make reference again to what might have obtained within the Linux communities in the past; and, among others, were their abilitities to obtain Venture Capital funding for the development of Open-Source projects. The thinking/question here is what about the possibilities of the OS/2 Communities making approaches to the Venture Capitalists in similar ways (with respect to OS/2 Project Development, Enhancements... ;D) to those of the Linux Communities. I hope you find the attached link informative and interesting:

Re: "Software"

"Open source companies grab VC cash"

"The 451 Group reports investments in open source companies during the first quarter outpaced previous year".

http://www.networkworld.com/news/2008/040208-open-source-venture-capital.html?netht=rn_040308&nladname=040308dailynewsamal

Kindest regards.

 
« Last Edit: 2008.04.04, 01:08:39 by saborion2 »

kimhav

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 990
    • View Profile
    • My Blog!
As intriguing as this sound the question is if we really can find an incentive for venture capitalist by being able to present a valid business case that we can work around. And the biggest issue we have that IBM won't support us - why should VC then do? I know that this really came kind of not that positive; but we need business case to get this kind of stunt to work.

RobertM

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 2034
    • View Profile
    • A.I.BuiltPC - using OS/2 Warp Server & eComStation for Custom Web and Database Solutions
Perhaps... if there was a product associated with OS/2 that fit such a scenario, where support contracts could bring in revenue - such as how (IIRC) the MySQL team operates.

But of course, that would also be contingent on proving the company had (or could obtain) a sufficient (and sufficiently trained, sufficiently available) support staff to make such a scenario plausible.

At least, that is one way I can think of that such a scenario could work - I am sure there are others.

I would also expect it would be more palatable in scenarios where the underlying OS was either "not known" or "not interacted with" or "not cared about" such as the scenario we are in where we use eCS as a web based software server and the end users (our customers) never see it and never interact with the boxes. On an interesting side note, we found a person who runs a company in upstate NY (I live in "downstate" on Long Island) who is pretty insistent on using OS/2 and eCS for such solutions as well... which may generate both of us - and Serenity - quite a few more licenses. but anyway, I bring that up, because in such solutions, there is no "OS/2 stigma" to overcome - which I am sure would also make such projects more palatable as well.
|
|
Kirk's 5 Year Mission Continues at:
Star Trek New Voyages
|
|


Fahrvenugen

  • Full Member
  • ***
  • Posts: 203
    • View Profile
I tend to agree.

One of the biggest issues that I've seen in a lot of the efforts to try and either get OS/2 or parts of OS/2 open sourced, and some of the efforts to try and increase the number of current applications available, is the lack of a strong *business case* or *business argument* for why this would be a good idea.  If anyone is going to pour money into OS/2 development, there needs to be a  good set of reasons for it, and a good understanding of how this can bring revenue and generate a positive profit.

As far as that goes, anything where the OS is transparent, and really makes little difference, is an area that could potentially be leveraged.  But, there would still need to be a strong business case.  In many of these types of areas, people and groups are already using OSes like Linux and BSD for little or no cost, with the benefit of being able to draw on the enhancements that the larger user and developer communities put into those OSes.


saborion2

  • Hero Member
  • *****
  • Posts: 548
    • View Profile
    • Orion Resources International
Thank you "kimhav" for the response and thoughtfulness in moving the discussion to a separate thread.  :) You said in part; "And the biggest issue we have that IBM won't support us - why should VC then do? I know that this really came kind of not that positive; but we need business case to get this kind of stunt to work". Incidentally, I came across another article; and, here is the title and the link below:

"VCs prepping for a souring economy"

http://www.news.com/8301-10784_3-9909675-7.html?tag=bl

Having come from the banking industry a few thoughts come readily to mind and perhaps the mandate should be given by the membership for the OS/2 World Foundation to undertake discussions with Venture Capitalists... for the specific purposes of promoting promising projects that may be identified in the OS/2 World  Bounty System.

I will also endeavor to find out additional details from contacts persons from within the "venture capital practice" here in North America.

Best regards.

« Last Edit: 2008.04.04, 04:14:54 by saborion2 »

RobertM

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 2034
    • View Profile
    • A.I.BuiltPC - using OS/2 Warp Server & eComStation for Custom Web and Database Solutions
Thank you "kimhav" for the response and thoughtfulness in moving the discussion to a separate thread.  :) You said in part; "And the biggest issue we have that IBM won't support us - why should VC then do? I know that this really came kind of not that positive; but we need business case to get this kind of stunt to work".
(emphasis mine)

Chicken or the egg? No matter how you look at it...
|
|
Kirk's 5 Year Mission Continues at:
Star Trek New Voyages
|
|


saborion2

  • Hero Member
  • *****
  • Posts: 548
    • View Profile
    • Orion Resources International
Hi there from "GOTHAM CITY" RobertM; Re: "Chicken or the egg? No matter how you look at it..." Hmmm...... how can we be sure that what is wrapped up in the package (within the context of the U.S. Housing situation; and, in the context of the recently agreed "MSOOXML Standards" :( by the International Organization for Standardization (ISO) ) :o  :(  is not a "soccer ball" instead of an "egg".  ;D . I believe that following the abandonment of the OS/2 Child by IBM... the banks in the U.S moved/transitioned to the Windows environment from that of of a previously dominant OS/2 one while in one particular bank in Brazil the transition was towards the Linux environment therefore it would be a good thing if if any "prospective business model" being spoken of can mirror a "one - two - punch" combination (OS/2 and a compelling Business Application) to regain market share in the U.S. Capital Markets Space. (re: the Housing Markets...) ::) ;D ::)
« Last Edit: 2008.04.04, 05:09:03 by saborion2 »

RobertM

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 2034
    • View Profile
    • A.I.BuiltPC - using OS/2 Warp Server & eComStation for Custom Web and Database Solutions
Hi saborion2,

I think how you plan it should be approached is not an issue... I was referring to how to entice venture capitalists - or developers and a support team to create a viable scenario - as a "chicken/egg" scenario.

With the money (VCs) available, it would be much easier to entice open source efforts, which would of course entice more money towards the project...

...but in order to do that, we need the money and business model... but we are unlikely to get that without the projects, a good developer base that can work full time on it, a good support team to work full time to generate services related income, etc - which requires the VC's (who most likely will not be interested unless the rest is in place)... thus requiring the developers and support personnel... which requires the VC's (who most likely will not be interested unless the rest is in place).

Thus, my "chicken/egg" scenario...  ;)

We need to figure out a way of getting the chicken or the egg - without already having the other.  :-\
|
|
Kirk's 5 Year Mission Continues at:
Star Trek New Voyages
|
|


kimhav

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 990
    • View Profile
    • My Blog!
Question remains if we have any companies that we could build proper case around; if not it's going to be hard to sell this kind of project.

miturbide

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 1154
    • View Profile
    • OS2World
Crazy Example 1:

- Go to Wincor-Nixdorf, Diebold and NCR. Show them that Windows on ATMs had bring them more problems than  before.

Since they already have an investment on OS/2 apps for their ATMs, give them a business case to support an Open Source OS/2 project, so they can have their own OS for ATMs.....

:?
Martín Itúrbide
OS2World.com NewsMaster
Open Source Advocate

Skype - martiniturbide
Google Talk - martiniturbide@gmail.com

saborion2

  • Hero Member
  • *****
  • Posts: 548
    • View Profile
    • Orion Resources International
Crazy Example 1:

- Go to Wincor-Nixdorf, Diebold and NCR. Show them that Windows on ATMs had bring them more problems than  before.

Since they already have an investment on OS/2 apps for their ATMs, give them a business case to support an Open Source OS/2 project, so they can have their own OS for ATMs.....

:?

Crazy Example 2:

Let the OS/2 community propose to the U. S. Financial Markets (banking....) how eCommerce Applications running on an enhanced (Modular Version) of the all but abandoned OS/2 Operating System can bring "innovative thinking" to the economies all around the world.  ;D ::) ;D

Surely, if countries can spend billions and trillions of dollars in fighting wars...; then, most certainly they can afford a few millions to give their citizens a better standard of living.  ;D ;D ;D
 
« Last Edit: 2008.04.10, 19:27:35 by saborion2 »

saborion2

  • Hero Member
  • *****
  • Posts: 548
    • View Profile
    • Orion Resources International
Hi saborion2,

I think how you plan it should be approached is not an issue... I was referring to how to entice venture capitalists - or developers and a support team to create a viable scenario - as a "chicken/egg" scenario.

With the money (VCs) available, it would be much easier to entice open source efforts, which would of course entice more money towards the project...

...but in order to do that, we need the money and business model... but we are unlikely to get that without the projects, a good developer base that can work full time on it, a good support team to work full time to generate services related income, etc - which requires the VC's (who most likely will not be interested unless the rest is in place)... thus requiring the developers and support personnel... which requires the VC's (who most likely will not be interested unless the rest is in place).

Thus, my "chicken/egg" scenario...  ;)

We need to figure out a way of getting the chicken or the egg - without already having the other.  :-\

Hi RobertM,

Yours is a very good observation; but, here is a real scenario for your consideration from;

Quote
...but in order to do that, we need the money and business model... but we are unlikely to get that without the projects, a good developer base that can work full time on it, a good support team to work full time to generate services related income, etc - which requires the VC's (who most likely will not be interested unless the rest is in place)... thus requiring the developers and support personnel... which requires the VC's (who most likely will not be interested unless the rest is in place).

Since current operations like the ones being undertaken by an institution such as The Multilateral Investment Fund

( http://www.iadb.org/mif/We_fund.cfm?language=English&parid=2 )

satisfies the identification requirement/aspect of the funding source (VC's...); then, from what you have said it appears that the things/conditions that are really needed are as follows:

Quote
good developer base that can work full time on it, a good support team to work full time to generate services related income, etc

Here is a challenge for you RobertM: Are you ready to lead the "team of developers".  ;D ;D ;D

« Last Edit: 2008.04.11, 02:52:38 by saborion2 »

RobertM

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 2034
    • View Profile
    • A.I.BuiltPC - using OS/2 Warp Server & eComStation for Custom Web and Database Solutions
Crazy Example 1:

- Go to Wincor-Nixdorf, Diebold and NCR. Show them that Windows on ATMs had bring them more problems than  before.

Since they already have an investment on OS/2 apps for their ATMs, give them a business case to support an Open Source OS/2 project, so they can have their own OS for ATMs.....

:?

Heck, even showing them that funding continued development of a closed source OS/2 would be beneficial.

We (the OS/2 and eCS community) are and have been the recipients of various fixes and updates to OS/2 largely because of such things. An IBM client (who refuses to or has not yet migrated off OS/2), through their support contract or on a pay as needed basis, engages IBM to fix or update various components in OS/2 or write needed drivers.

Thus, I think such a method could still be beneficial to the eCS community with the right parameters in mind by such a company - such as an updated (64 bit anyone?) kernel and continued driver support - which we (via Serenity) would then benefit from.

Note: I am not saying it would be the best solution (I'd rather the right people had access to the source to update it on (our) own). But it is a feasible solution in ensuring that OS/2 runs, takes advantage of, and will continue to run on the newest hardware. It is a start...



The problem still arises, in how to convince such companies that such a strategy is beneficial. I am sure convincing them that they would have avoided such headaches by sticking with OS/2 is the easy part.

I am not so sure that convincing them to stick with (or switch back to) OS/2, when they'd need a company willing to support such a large infrastructure, would be nearly as easy.

And though I would love to volunteer for such, mine and my bro's company is a mere 2 people (he and I) and some outside contractors on an as-needed basis. And sadly, we are talking about needing a company that can do such support, installations, setups and maintenance on a nationwide (pick your country) - or even global scale. Including writing new third-party software that will run on the ATMs with all the neat "bells and whistles" - which while possible, will require OS/2 programmers on a level that we seem to be lacking.


« Last Edit: 2008.04.11, 04:32:26 by RobertM »
|
|
Kirk's 5 Year Mission Continues at:
Star Trek New Voyages
|
|


RobertM

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 2034
    • View Profile
    • A.I.BuiltPC - using OS/2 Warp Server & eComStation for Custom Web and Database Solutions
Hi saborion2,

I think how you plan it should be approached is not an issue... I was referring to how to entice venture capitalists - or developers and a support team to create a viable scenario - as a "chicken/egg" scenario....

Hi RobertM,

Yours is a very good observation; but, here is a real scenario for your consideration from;

Quote
...but in order to do that, we need the money and business model... but we are unlikely to get that without the projects, a good developer base that can work full time on it, a good support team to work full time to generate services related income, etc - which requires the VC's (who most likely will not be interested unless the rest is in place)... thus requiring the developers and support personnel... which requires the VC's (who most likely will not be interested unless the rest is in place).

Since current operations like the ones being undertaken by an institution such as The Multilateral Investment Fund

( http://www.iadb.org/mif/We_fund.cfm?language=English&parid=2 )

satisfies the identification requirement/aspect of the funding source (VC's...); ...


All but the viability of backing a product with a speculative future (ie: IBM has abandoned it, and there thus needs to be a LOT of work done to replace the pieces of the OS that IBM will not (or can not) open source).

...then, from what you have said it appears that the things/conditions that are really needed are as follows:
Quote
good developer base that can work full time on it, a good support team to work full time to generate services related income, etc

Here is a challenge for you RobertM: Are you ready to lead the "team of developers".  ;D ;D ;D

Sure! I know enough about programming to be dangerous... so I would be the best choice...

...well, if we were talking about writing Windows Vista perhaps - but someone beat me to that position and Vista has been released...  ;D  ;)

-Robert
|
|
Kirk's 5 Year Mission Continues at:
Star Trek New Voyages
|
|


saborion2

  • Hero Member
  • *****
  • Posts: 548
    • View Profile
    • Orion Resources International
Quote
Sure! I know enough about programming to be dangerous... so I would be the best choice...

...well, if we were talking about writing Windows Vista perhaps - but someone beat me to that position and Vista has been released...  Grin  Wink

-Robert

From the below attached video it would appear that someone has already"beaten you - again to it"... by establishing a partnership with the Inter-American Development Bank (IDB):

http://www.iadb.org/am/2008/videos.cfm#

Perhaps, you can still have that opportunity to play in the "games" via COMFETAR LIVE;D ;) ;D

Let us know what are your strategic and tactical game plans for participating in the games against those "dudes" from the Redmond Campus who are already burning up the tracks. 8)