Likewise Software — an open source specialist that helps VARs integrate Linux, Unix and Mac systems with Active Directory — expects to double its revenue in 2010, according to CEO Barry Crist (pictured). Here’s the scoop and some analysis.
According to a Jan. 4, 2010 blog post from Crist, Likewise “capped 2009 with over 100% sales growth … for our fourth consecutive year. I’m forecasting at least 100% growth for Likewise in 2010.”
Alas, Crist didn’t mention a channel partner strategy in his blog post. But Likewise is certainly committed to its partner program — which landed on The VAR Guy’s Open Source 50 list in 2009.
Key Moves
Likewise was among the first companies to join the Open Source Channel Alliance in April 2009. Red Hat and Synnex launched the alliance as part of an effort to promote open source options to more than 15,000 Synnex resellers. (Come to think of it: The VAR Guy needs to check in to see how the alliance is performing…)
Meanwhile, Likewise also has a partnership with Avanade — the enterprise IT consulting firm launched by Accenture and Microsoft in 2000. Accenture is now Avanade’s majority owner, though Avanade’s Microsoft technology focus remains intense.
Likewise is privately held so it’s difficult to nail down exactly how well the company is performing. Still, CEO Crist says sales have exceed expenses as of Q2 in 2009. And yes, Likewise will continue to “invest heavily in Likewise Open. Our current monetization model is working very effectively and we will continue this approach in 2010 and beyond.”
The VAR Guy is intrigued. Especially since Likewise’s success signals an ongoing enterprise commitment toward mixed environments (Windows, Mac, Unix, Linux) tied together by Active Directory.
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100% growth based on what? Until you find out and report on what they are growing from, it is pretty useless to regurgitate vendor babble of doubling each year. Year 1 could have been something like $250k, then $500k for their second, then $1 million for their third and then $2 million for their fourth. Somehow $2 million in revenue in the 5th year of a company after VCs put in nearly $30 million is the the opposite of woo hoo and not worthy of a blog post from the normal great content we get from the VAR Guy …
Anonymous: You raise a fair point. The VAR Guy should have pointed out that a small revenue base could be involved. Our resident blogger will keep your timely constructive criticism in mind as he pursues future blog entries.
-TVG
Call it a virtual conversation between The VAR Guy and Likewise CEO Barry Crist. After Crist read the blog post above, he wrote a bit about Likewise’s channel strategy.
-TVG
Dear Var Guy,
Anonymous’ analysis is wildly incorrect; perhaps he should step out of the shadows and have a public debate. Our growth, prior to 2009, was greatly in excess of 100% but it is a truism that growth slows as you get bigger. Despite the economic climate we exceeded our plan in 2009, grew sales by over 100%, recorded three of our largest quarters ever, and got cash-flow-positive. What’s not to like. Our venture investors (Ignition, Trinity, and Intel) are ecstatic which isn’t what I’ve heard about some of our venture funded competitors. I’ll quote a public statement made last April by John Conners of Ignition and the former Microsoft CFO, “”Likewise really stands out in the current economic climate in terms of growth, balance sheet, and team. They are on a tear with a disruptive business model, strong partnerships, and a clear road to profitability.”
Barry: The VAR Guy appreciates you weighing in… Two quick thoughts…
1. I think “Anonymous” raised a valid point: TheVARguy.com should have at least mentioned Likewise might be building off a small revenue base.
2. 100% growth is still impressive. Period. And The VAR Guy appreciates you adding some color commentary/background. John Conners’ statement is particularly eye-opening.
Keep The VAR Guy posted on Likewise’s progress, especially within the channel.
-TVG