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View Full Version : Is Canonical's business model sustainable?



foxy123
June 14th, 2005, 06:14 PM
Well, I do not want to pry into their business, but I wonder how they are going to sustain their business. If they fail, Ubuntu may lose its edge, and I get used to it.

I can understand Fedora or SuSE or even Mandriva as well as some community projects, but cannot make any sence of Canonical so far. What do they do to earn money?

Burgundavia
June 14th, 2005, 06:30 PM
Canonical has a very murky business model. I suspect that they are going to get contracts to maintain Ubuntu.

That being said, Mark Shuttleworth is personally wealthy, and doesn't really need to turn a profit anytime soon.

Corey

ubuntu_demon
June 14th, 2005, 06:31 PM
Well, I do not want to pry into their business, but I wonder how they are going to sustain their business. If they fail, Ubuntu may lose its edge, and I get used to it.

I can understand Fedora or SuSE or even Mandriva as well as some community projects, but cannot make any sence of Canonical so far. What do they do to earn money?


Canonical's business model is to provide technical support and professional services related to Ubuntu


see also

http://www.ubuntulinux.org/support/supportoptions/marketplace

and also :

http://www.ubuntulinux.org/support/supportoptions/paidsupport

And my opinion on this (without knowing more than this) :

Mark Shuttleworth (the man who went to space as a vacation trip) wants to do something back for the world and especially South Africa. He doesn't mind if he doesn't make profit for a couple of years. He also wants schools to have an easy,good and free OS. See : http://www.edubuntu.org

I think what Mark Shuttleworth started with Ubuntu is great!

Check also the next episode of lugradio (25 june) .. they will cover an event at which Mark Shuttleworth will speak.

http://www.lugradio.org/

Sat 25th June 2005 : 11am - 5pm @ The Terrace Bar, Molineux Stadium, Wolverhampton, UK

http://www.lugradio.org/live/2005/

desdinova
June 14th, 2005, 06:32 PM
Its a business model that works quite well as a lot of companies thrive on selling support - its often called the Razor model. Lots of IT companies thrive on support contracts.

Give away the razor's for nothing, but sell the blades

Xian
June 14th, 2005, 06:42 PM
Give away the razor's for nothing, but sell the blades
Heh. I was just about to ask where that came from. :)

skoal
June 14th, 2005, 07:02 PM
Who says you need to sell "services" to remain profitable. As the user base grows and word travels, marketing the Ubuntu trademark alone will reap rewards. I don't know if advertising will ever be considered on these forums, but, I for one welcome my new google ad banner overlord!

\\//_

Gtaylor
June 14th, 2005, 07:15 PM
Debian is completely non-commercial and it does pretty well. I'm not sure how they do it but if they can, then one would reason it's not impossible for us to do the same (with the added benefit of doing some commercial stuff).

jdodson
June 14th, 2005, 07:21 PM
I read in a interview with Mark about his opinion of Ubuntus profitability. He said something to the effect of "Whether it turns out to be philanthropic or a good business move remains to be seen." I think we are all waiting for time to tell. :)

jeremy
June 15th, 2005, 06:21 AM
Its a business model that works quite well as a lot of companies thrive on selling support - its often called the Razor model. Lots of IT companies thrive on support contracts.

Give away the razor's for nothing, but sell the blades
Give away the printer, and sell the ink!

bored2k
June 15th, 2005, 06:25 AM
Give away the printer, and sell the ink!
Printers aren't cheap lol. Razors are (though I've never shaved). :-P

tread
June 15th, 2005, 06:59 AM
though I've never shaved

Ah, so that is your photo on the side of your post :)

bored2k
June 15th, 2005, 07:06 AM
Ah, so that is your photo on the side of your post :)
LoL its starting to get annoying --/me looks like Kurosaki Isshin (http://www.animenfo.com/anime/character/display.php?id=5862&n=gdlnrg&t=kurosaki_isshin)

Back to sustainability !

In M.Shuttleworth's last /. interview, he said they were planning on selling their services instead of the distro (razor model indeed), I wonder what companies have requested Canonical's service.

tread
June 15th, 2005, 07:11 AM
HP is planning to sell laptops in Europe with Free Dos .. the laptops will be completely Ubuntu compatible. They will not install Linux on them, but will offer customers the choice of OS, recommending Ubuntu and Canonical for support.

ltmon
June 15th, 2005, 08:11 AM
HP is planning to sell laptops in Europe with Free Dos .. the laptops will be completely Ubuntu compatible. They will not install Linux on them, but will offer customers the choice of OS, recommending Ubuntu and Canonical for support.

Does anyone know why they won't just preinstall Ubuntu? Is there some kind of horrible Microsoft business deal that prevents them, or another reason?

L.

poofyhairguy
June 15th, 2005, 08:19 AM
Does anyone know why they won't just preinstall Ubuntu? Is there some kind of horrible Microsoft business deal that prevents them, or another reason?

L.

That plus they don't want someone buying what is basically an OEM laptop asking for Ubuntu support.

poofyhairguy
June 15th, 2005, 08:20 AM
I can understand Fedora or SuSE or even Mandriva as well as some community projects, but cannot make any sence of Canonical so far. What do they do to earn money?

This:

http://www.ubuntulinux.org/support/supportoptions/paidsupport

nocturn
June 15th, 2005, 08:27 AM
Debian is completely non-commercial and it does pretty well. I'm not sure how they do it but if they can, then one would reason it's not impossible for us to do the same (with the added benefit of doing some commercial stuff).

Just one point, Debian is an organization, not a company. They are not focusing on making money (unlike Mandrake, SuSE, etc). The best comparison is the red cross or unicef.

trivialpackets
June 15th, 2005, 07:33 PM
Printers aren't cheap lol. Razors are (though I've never shaved). :-P
The one's that are given away are, trust me, I know. It's my job :)