The VAR Guy

During a phone chat today, a Web developer asked The VAR Guy if the US financial crisis would send more corporate customers running out to buy low-cost open source solutions. The VAR Guy’s surprising answer: No. Here’s why.

As we approach next week’s LinuxWorld Expo, The VAR Guy was reminded of an age-old problem. During a meeting earlier this week in New Orleans, a solution provider told The VAR Guy he just didn’t understand how to profit from open source. Didn’t we put this issue to rest a long time ago? Perhaps not. Here are eight ways VARs can profit from Linux and Open Source.

The VAR Guy picked up the phone and dialed Sun Microsystems Inc.’s investor relations department. When the call went to voicemail, he left this message: “Are the rumors true? Is Sun seeking to replace CEO Jonathan Schwartz?” Here’s more on the rumor, and The VAR Guy’s depressing reaction to it.

The VAR Guy has a theory: Sure, thousands of Microsoft partners are seeking to host Exchange Server, Dynamics and SharePoint. But, our resident blogger believes, a good portion of the Software as a Service (SaaS) industry is going open source. First, Linux became popular for hosting applications. Now, open source applications like SugarCRM are increasingly shifting to the SaaS model.

In our “winner take all” society, The VAR Guy is starting to wonder: Can open source companies like Concursive, Compiere and EnterpriseDB ever escape from the shadows of their larger and more successful rivals (SugarCRM and MySQL)? Before you answer, consider these lessons.

The VAR Guy isn’t suggesting that open source companies will launch initial public offerings (IPOs) anytime soon. But a lengthy chat with an open source guru — call him Pele — got our resident blogger brainstorming a bit. Here are three open source companies that could test the IPO waters over the next couple of years.

PC makers and their customers continue to push back against Windows Vista. Software as a service (SaaS) and open source are giving Microsoft fits. Yet, it’s far too early to bury Microsoft. Here are seven reasons why the software giant’s empire won’t completely fall anytime soon.

Red Hat’s annual revenues now top $520 million, according to financial results released today, and the company is charting a course to $1 billion. Sounds wonderful. But there’s a bigger story here: Red Hat’s financial momentum will pave the way for more open source IPOs.

Seven years after Microsoft spent $1.1 billion to buy Great Plains Software, that acquisition is finally paying some major dividends. The latest example: Electronic Data Systems (EDS) has agreed to sell, service and support Microsoft Dynamics — the next generation of Great Plains’ software. EDS’s backing is the latest in a growing list of key endorsements for Dynamics.