A breakout year for Open Source businesses

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I was talking to Chetan Puttagunta yesterday, and we both agreed that 2018 has been an incredible year for Open Source businesses so far. (Chetan helped lead NEA’s investment in Acquia, but is also an investor in Mulesoft, MongoDB and Elastic.)

Between a series of acquisitions and IPOs, Open Source companies have shown incredible financial returns this year. Just look at this year-to-date list:

Company
Acquirer
Date
Value
WP Engine
Silverlake (P/E)
January 2018
$250 million
CoreOS
RedHat
January 2018
$250 million
Mulesoft
Saleforce
May 2018
$6,5 billion
Magento
Adobe
June 2018
$1,7 billion
GitHub
Microsoft
June 2018
$7,5 billion
Suse
EQT partners
July 2018
$2,5 billion
Elastic
IPO
September 2018
$4,9 billion
For me, the success of Open Source companies is not a surprise. In 2016, I explained how open source crossed the chasm in 2016, and predicted that proprietary software giants would soon need to incorporate Open Source into their own offerings to remain competitive:

The FUD-era where proprietary software giants campaigned aggressively against open source and cloud computing by sowing fear, uncertainty and doubt is over. Ironically, those same critics are now scrambling to paint themselves as committed to open source and cloud architectures.

Adobe’s acquisition of Magento, Microsoft’s acquisition of GitHub or SalesForce’s acquisition of Mulesoft endorse this prediction. The FUD around Open Source businesses is officially over.
Source: Dries Buytaert www.buytaert.net

Posted on October 12, 2018 in Adobe, cloud computing, Drupal 8 Development, Drupal Developer, Expert Drupal Development, Magento, Microsoft, The, Web Design Services

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