Very Briefly This Morning


  • Mercora 2.0 is ready for download
  • Citations Shoot-Out: Bloglines Citations is winning RSS live search war.
  • Martin Tobias is getting rid of these guys: “AlwaysOn and anything ‘new’ Red Herring (Never found anything new here and very high signal to noise ratio).
  • Silicon Beat: Kleiner Perkins Caufield & Byers, has teamed up with Sevin Rosen Funds to invest $6 million in XenSource which is offering an open source virtualization technology. Founders include the leader of the Xen project, Ian Pratt of the University of Cambridge. Sigh… Yet another open source start-up… has anyone turned a profit so far on this open source thing.
  • TechDirt: Google is getting set to launch the Mini-Google-in-a-box. Google has offered a search appliance for a while, which gets good reviews, but clearly has not been a very large part of their business. Err … how does $50 million a year sound to you?
  • MobileTracker: Nokia announced layoffs from its research and development division. Jobs will be lost all over the world but Germany and Finland will see the bulk of nearly 500 layoffs. Nokia plans to bring R&D expenditure down to 9%-10% of net sales by the end of 2006. R&D added up to 13% of net sales in 2003. Okay in case you were wondering… why… its because GSM business has peaked and all these folks were doing GSM related work. Now its time for Nokia to focus on WCDMA/UMTS stuff.


Om Malik

Yup… that’s a clear sign that some things are not working. however i think nokia is trying to tweak its business model and is a company in transition so to speak. R&D i think is a good thing. Look at Qualcomm and TI – they never cut R&D but everything else is fair game for slashing

Jesse Kopelman

Is reducing R&D ever a good idea? That it is too high a percentage of your revenue says to me that your sales and marketing need work, not that you are spending too much on R&D . . .

Max Niederhofern

“…has anyone turned a profit so far on this open source thing.”

MySQL seems to be doing well with the dual license strategy. LJ could be termed a “profit” in terms of return on investment. Some of the enterprise app companies developing their products on seem to be doing alright.

I think the answer hinges on what you think is “open source”… GNU GPL? Then no, no one’s making any money from that.

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