Posts Tagged ‘OEM’

2008

Wednesday, January 2nd, 2008

2007 was a challenging year during which we made major progress:

  • We went through a new capital injection in the company. It was a complex and long process, but it went smoothly. In the process, we gained a new major shareholder with an important stake in the company: Occam Capital is now seriously involved and our reference shareholder. Many of our major shareholders also participated in the round.
  • We acquired Linbox, a French free software publisher with excellent technology and references. We have now properly integrated the Linbox team: we created a Corporate Business Unit, which includes Linbox and the Mandriva employees working on the French corporate market. We have defined a road map for Pulse 2.0, convergence between the original Mandriva Pulse product and LRS, Linbox Rescue Server. The first installments planned in this road map have been delivered and are being deployed on customer sites. We have won several new major customers with this technology: we are for instance deploying the system for a French customer who will use it to manage 90,000 desktops, and we’re very proud of this deal.
  • 2007 was the year when the first low cost computers finally made it to the market, focusing on emerging countries. The OLPC is on the verge of making a real impact on the market, the Intel Classmate made an interesting debut, and the Asus Eee is a slick and interesting machine. We put a strong focus on OEM agreements in emerging markets and saw results in countries such as Brazil, Argentina or Nigeria, through agreements with companies such as HP, Positivo, Qbex and Intel.
  • We drastically changed our traditional Linux distribution business: the product line was simplified, a strong focus was put on our free products (Mandriva Linux One and Mandriva Linux Free) and on their easy download, prices were drastically reduced, Mandriva Club membership became free, we invested a lot in improving our relationship with the community and our contributors and a complete new web site was put in place. We got a globally warm response to all these changes.
  • We kept our policy of investing heavily in technology: for instance, Metisse was introduced and is now a standard part of our distro, through a partnership with the University of Paris XI which keeps investing into the technology. We were a key player in putting together a Free Software technology cluster in the Paris Region, part of the “Pôle de compétitivité Systematicâ€?.
  • We kept developing our network of partners: we added countries such as Turkey, South Korea, and Lithuania. We are happy to see the success met by some of our partners in Russia, Poland, South Korea and Nigeria for instance.

Our numbers for the last quarter of 2007 will show signs of improvements and will confirm the validity of our new strategy.

We will pursue these efforts in 2008:

  • On the corporate side, we plan to confirm the positive results of the Pulse product by continuing to deliver on the product roadmap, by gaining new customers, and by starting to push the product internationally in Brazil and through our partner network.
  • On the low cost computer market, we believe OLPC, Classmate and Asus Eee were just the precursors: in 2008, we will see more exciting machines, many of them in preparation right now. Linux will play a key role in there and we intend to be very active on this market. We will accelerate our effort, benefit from the continued growth of that market and should be able to announce in Q1 a major partnership in that space signed in 2007.
  • On the community side, we will increase our openness, listen to the community, strengthen our relationship, improve and consolidate the free Club.
  • We will keep investing in innovation: we expect to see new funding for cooperative project, such as, for instance, Deskolo, an R&D project focused on ecological management of large IT infrastructure.

So I look forward to a great 2008 year and I wish all our friends, customers, contributors, partners and users a very happy new year.

Mozilla 24

Monday, September 17th, 2007

Last Saturday I participated in Mozilla24 a cyber and physical event organized by the Mozilla foundation. The overall event took place in France, Japan, Thailand and the US. The panel discussion I was in was only (I assume for time zone reasons) in France, Japan and Thailand.

In France, it was held at ENST (a Telecommunication Engineering School in Paris), in a rather ugly auditorium (like most auditoriums of French engineering schools). It seemed from the pictures on the screen that they had found similarly ugly places in Japan and Thailand. Which means the glitter was in the technology rather than in the setting.

The technology was indeed impressive: good and clear communication around the globe, possible interaction between the sites and good quality sound and video. On the other hand, there were lots of people busy pulling wires and frantically typing on keyboards, so I assume there was a lot of work behind the seemingly effortless exercise.

Participants in France were OpenOffice.org (Charles Schulz), Wikimedia (Pierre Beaudoin), Mozilla Europe (Tristan Nitot) and Mandriva (yours truly).

Tristan was his usual mix of fun, kindness and smart and told us some cute stories on the beginning of Mozilla in France, when life was tough (it is much better now). He had given each presenter a list of questions to answer and to my surprise everyone followed the scenario he had provided.

In my presentation, I explained the three key words which drive our strategy: simple, innovative and open. Simple as in “take technology to the masses by making it simple�, innovative as “include innovations in the distro to take them mainstream� and open as in “open source, free software and open standards�. Then I went to our focus on bringing Linux to emerging markets via OEM relationships, as we are doing today for instance in Brazil and Argentina.

I had a question on fighting Microsoft in emerging markets. This is a good question: we indeed met them recently when they offered $3 licenses to a prospect we were talking to in an emerging market country (more on this soon)! I had another question on the multiplicity of distros: 5 years from now, will there still be many distros? Our vision is we should see convergence on the lower layers of the distro, i.e., the core components and the added value of a specific distro should move up in the software stack.

Mandriva’s business model

Friday, April 6th, 2007

I am often asked about the Mandriva business model. So here is a quick summary of the key points:

  1. we’re open source
  2. we’re a product company
  3. we’re publicly traded
  4. we address both the consumer market and the corporate market
  5. we address the consumer market through multiple channels
  6. we have a network of partner/distributors
  7. we address the corporate market through direct sales
  8. we are international

Being open source means:

  • Every software product we develop and distribute is under GPL (including Pulse for instance).
  • We receive contributions and we deeply appreciate the help of all of those who help us develop the distro.
  • We provide two free (as in free beer) versions of Mandriva Linux together with their free maintenance: Mandriva Free, which does not include any proprietary components, and Mandriva One, which includes some proprietary drivers. These ship at the same time as the commercial versions of the product and are available for download from public mirrors.

We devote an important part of our expenses (about 30%) to the development of products. These include Linux distributions and tools to manage them. We also invest in advanced r&d projects to develop technology, some of which is integrated in our products.

We are listed on the Euronext Marché Libre. This means we publish quarterly results and we have to follow the rules and regulations from the AMF (French equivalent of the SEC).

We address both the consumer market and the corporate market. Today, we do roughly 55% of our revenue in corporate and 45% in consumer. We believe this double focus makes sense because there are both marketing and engineering synergies between those two segments.

  • Marketing, because our image in the consumer world helps us when we address a corporate customer.
  • Engineering, because the core of the product is common to both consumer and corporate products.

This does not mean that one funds the other: we believe each business should be profitable by itself.

We address the consumer market through three channels (in order of importance)

  1. e-commerce channel includes our web store, Mandriva Store, which sells essentially boxes and downloads, and the Mandriva Club which operates by subscriptions
  2. OEM agreements are established with hardware vendors such as HP or Positivo who ship and sell PCs with Mandriva pre-loaded in various geographies
  3. Retail stores resell our boxes

Our consumer products are Mandriva Free, One, Discovery, Powerpack, Powerpack+ and Flash. As a service, we provide web support through our MandrivaExpert platform.

Our network of franchisees has about 25 members. Some of them have been with us for quite a while (such as our Czech and Polish friends), but we have recently grown this network aggressively. These distributors execute a strategy adapted to their local situation: they customize products, chose specific channels, and provide associated services.

We address the corporate market through direct sales and in partnership with service companies. Our key products are Corporate Server, Corporate Desktop and Pulse, our tele-distribution tool. Our services are consulting, support, maintenance and training, and we have teams dedicated to each one of these tasks. Work for a large organization typically consists in customizing a distro, helping the customer deploy it, providing tools to manage it and maintaining it and supporting it over time.

We operate worldwide: our consumer business spans 150 countries, our corporate business is more focused on France and Brazil, with some activities in other countries such as the US.

We keep questioning that model. It has evolved over time as we’ve questionned it and we’ve listened to suggestions. It will keep evolving. Except for our core value of being an open source product company.

Invictus Firewall

Friday, October 6th, 2006

Invictus Firewall

We’ll be shipping Mandriva Linux 2007 with an extra security feature we’re very proud of: Invictus Firewall.

Invictus is latin for unconquered and the title of a famous poem by William Ernest Henley. Invictus Firewall is a redundant firewall. Drakinvictus is the wizard that will help you to configure it, in your language when available. That’s as Mandrivian as it gets.

Samir Bellabes came to me and said “Alex, I just added some sweetness to the kernel”. Samir took the ct_sync capabilities of Netfilter, that allow syncing conntrack and expect tables between the two firewalls, and the virtual IP address sharing allowed by ucarp from OpenBSD. All in all, if the master fails, the slave knows when and how to replace it, instantly. Dead simple, simple genius.

Sam is a networking and security wizard. Rumours say he’s on the right spot to know what you need to protect your network. Colleagues say his help is valuable when designing protocols to communicate with certain employees from the communication agency across the street. Anyway, here’s a diagram of what your network could look like with Invictus Firewall (click on the image to enlarge it):

Invictus Firewall diagram
So there’s the kernel trick by Sam, and there’s also Blino’s user interface. A Mandriva wizard as you love them.
DrakInvictus
Invictus Firewall is of course licensed under the General Public License. We’re making it available in Mandriva Linux Powerpack+ 2007: once you’re running the system simply launch drakinvictus to configure it.
Our Small and Medium Business clients can now safeguard their network’s first and last protection from the wild world of the Internet — the firewall — and benefit from our technical support.If you’ll be using any other flavour of Mandriva Linux 2007, you’ll be able to install drakinvictus with urpmi or the brand new rpmdrake2.For 2007, we wish you to remain unconquered.