Tuesday, April 04, 2006

An Open-Source Lightning Rod

Marc Fleury has taken JBoss to the top, but he has alienated many along the way

One weekend back in December, Marc Fleury was hunched over his computer, absorbed in writing a fervent, almost preachy and completely self-serving blog about why IBM (IBM ) and BEA Systems Inc. (BEAS ) will never be able to best his tiny but growing open-source company, JBoss Inc. His 6-year-old daughter walked up to him and asked: "Daddy, why are you still working on a Sunday? Is IBM still after you?" He laughed and replied: "Yes, darling...but now a whole industry is ganging up on us."

That's life in the Fleury household. The entrepreneur's favorite movie is The Matrix because, like its protagonist, Neo, he has long fancied himself working a boring day job and then saving the world at night. Fleury's company, JBoss, is a key player in the booming open-source movement that's shaking up every software company from Microsoft (MSFT ) to Oracle (ORCL ) to IBM, forcing them all to change their strategies or to collaborate with younger, faster-moving competitors that develop "open" software, distribute it freely on the Net, and make money by providing support and training for it. When JBoss took in venture capital in 2004, it was valued at $200 million, and those close to the company say Fleury and his family own nearly 50%.

PROFIT MOTIVE
But while Fleury, like Neo, is something of a cult figure, few people in the old or new software world want to think of him as their savior. Brash, outspoken, and frequently insulting, Fleury has clawed his way to the top of the open-source pile over the past six years. Part of the dislike arises because he's a threat. Even though JBoss brings in only $50 million a year in revenues, at most, from providing training, support, and maintenance services to its users, it has siphoned off some hundreds of millions in market value from the likes of BEA Systems and IBM by giving away free software.

Meanwhile, some open-source companies are put off by what they say is Fleury's money-grubbing, controlling style. It's out of keeping, they say, with the cooperative, do-it-for-the-greater-good ethos of the open-source movement. Stuart F. Cohen, head of Open Source Development Labs Inc. (OSDL), a nonprofit group that advocates for the development of Linux, the open-source operating system, remembers the first time he met Fleury. He had been invited to Atlanta to be on a panel at a JBoss customer event, and Fleury kept asking when he was going to take OSDL public. "To him, everyone is out to make money," he says. "That's not what this idea is really all about." Even competitors from the traditional software world criticize Fleury for having what they say is a cynical profit motive. "Marc Fleury has really exploited the open-source hype for his own personal financial gain," says one. Fleury's reply: "That's like someone telling the rapper 50 Cent he's not street enough."

If Fleury is focused on making money, perhaps that's because he spent a few frustrating years in Silicon Valley making none. His ambitions were nearly crushed in 2001 when he and his wife, Nathalie, and their young daughter left Silicon Valley penniless after he had spent years trying to build a software hosting company called Telkel. He was disillusioned and sick of playing the Silicon Valley game: putting together a business plan and shopping it around to "snooty" venture capitalists.

So he moved into his in-laws' house in Atlanta and focused on contributing to an open-source project that he and others had started in 1999, JBoss. All he wanted to do, he told his wife, was write code for free all day long. "She told me I was stupid," he says, and gave him a year to make $70,000 or else get a job. Then companies downloading JBoss software started asking him for training and support -- and offering to pay. A year later, Fleury had made more than $100,000.

DEMANDING PERSONALITY
He's worth a lot more now, to the dismay of his critics. Some investors have even refused to invest in JBoss because of Fleury's style. "It's a strength and a weakness," says David R. Skok, a partner at Matrix and the company's biggest outside investor. "Because he's so disliked, it creates incredible controversy and incredible press. I think he knows that, and kind of plays that up." His personality may have played a part in what insiders say was an offer from Oracle Corp. earlier this year that fell apart. Oracle is said to have valued the small company at nearly $500 million -- a big endorsement of open source that had entrepreneurs and venture capitalists licking their chops along with JBoss employees, who own a large chunk of its stock.

Neither Fleury nor Oracle will comment on what happened, but insiders say the deal died because of Fleury's demands about what his role would be at the combined company. With Oracle paying such a premium, the deal was going to be integrated its way, not his. Fleury will say only this: "One of the conditions of me selling to anyone is we remain whole and I remain the boss."

Fleury owns up to the reputation that he has developed. Sitting in an unkempt office in a flashy Atlanta building, he downs a giant cup of coffee before dribbling Visine into red-rimmed eyes. He spits sunflower seeds in a cup as he talks about why people hate him. The old software world? They're jealous. Open-source zealots? "They probably hate me at night because they didn't have the cojones to go out and do [what I've done]."

Of course, no one says you have to be a nice guy to make it in software -- just ask people who have worked for Microsoft's Bill Gates or Oracle's Lawrence J. Ellison, whom Fleury names as personal heroes. And although Fleury didn't write the most salient parts of JBoss code and wasn't the one to fine-tune the business model, JBoss probably wouldn't be where it is without him. As much as he is despised outside the company, its executives and developers describe him as the visionary who holds JBoss together. "The public face of Marc is very abrasive, but inside the company, he really cares a lot about what you have to say," says Sacha Labourey, JBoss's chief technology officer and one of its first employees.

Fleury has hired some of the best contributors to the open-source project, who work for him remotely from around the world. He fancies himself a sort of record label managing "rock stars." He has always wanted to be a hotshot programmer himself. During his first tech job at Sun Microsystems Inc. (SUNW ) in France, the company kept trying to push him into sales or middle management, and he insisted on software development. When he came to Silicon Valley with Sun in 1997, he continued to be frustrated when he couldn't break into its elite programming teams.

Now, as an employer of elite programmers, he gives them the freedom to take months on projects of their choosing. He rewards them with "genius grants" when they do something particularly innovative. "Managing superstars is one of the things I can do," he says. As Fleury talked to BusinessWeek, he was planning a surprise birthday bash for one of his "geniuses." The details: "We are going to get this horrible stretch limo and go out to dinner and [the clubs]."

A few weeks ago, Fleury's daughter had another question for him: "Daddy, is JBoss still going to be around when I'm big?" She's not the only one wondering about that. Red Hat (RHAT ), Novell, and Oracle are all said to be interested in the company. But quietly, several industry watchers say the cocksure Fleury blew his chance. Aside from Red Hat, there are few businesses that have proved they can scale up using the free-software model. Red Hat's steep earnings multiple, which tops 80, along with the $500 million that venture capitalists pumped into startups last year have some worried about an open-source bubble that may be nearing its limit.

If Fleury is kicking himself, he's certainly not doing it publicly. He and his investors say they're focused on getting ready for an initial public offering, which will come "sooner rather than later," according to Chief Operating Officer Rob Bearden. "They'll be rich," Fleury boldly says of investors and employees. "I'll create a generation of open-source millionaires, and I'm damn proud of that."

source:http://www.businessweek.com/magazine/content/06_15/b3979095.htm?campaign_id=rss_magzn

New "Dark" Freenet Available for Testing

The Freenet Project has just released the first alpha version of the much anticipated Freenet 0.7 branch. This is a major departure from past approaches to peer-to-peer network design, embracing a 'scalable darknet' architecture, where security is increased by allowing users to limit which other peers their peer will communicate with directly, rather than the typical 'promiscuous' approach of classic P2P networks. This means that not only does Freenet aim to prevent others from finding out what you are doing with Freenet, it makes it extremely difficult for them to even know that you are running a Freenet node at all. This is not the first P2P application to use this approach, other examples include Waste, however those networks are limited to just a few users, while Freenet can scale up almost indefinitely. The new version also includes support for NAT hole-punching, and has an API for third-party tool development. As always, the Freenet team are asking that people support the development of the software by donating."

source:http://yro.slashdot.org/yro/06/04/04/0148224.shtml

Microsoft to acquire ProClarity

Microsoft announced Monday that it plans to acquire business analytics software developer ProClarity, a third party Microsoft developer, ProClarity to increase its presence in the business intelligence market. Proclarity has business analytics that work with such Microsoft products as SQL Server 2005, Microsoft Office Business Scorecard Manager 2005 and Microsoft Office Excel. Microsoft's Office productivity suite and server products, such as its SharePoint portal software, are expected to feature business intelligence and collaboration capabilities.

The business intelligence market is an industry to watch, said Bruce Richardson of AMR Research. Companies that face restrained budgets are more willing to pay for technology that aids them in making better business decisions using their installed software applications. "This acquisition advances our (business intelligence) strategy and our ability to deliver performance management applications to customers," Jeff Raikes, Microsoft business division president, said in a statement.

source:http://news.com.com/2110-1012_3-6057068.html?part=rss&tag=6057068&subj=news


Microsoft Providing Virtual Server Free

In an effort to gain a market majority over VMware Microsoft announced it is giving Virtual Server away for free, additionally they will provide customer support for Linux. In a related move VMware have opened their partition file format to the community, aggressive and suprising moves in the virtualisation market."

America's war on the web



IMAGINE a world where wars are fought over the internet; where TV broadcasts and newspaper reports are designed by the military to confuse the population; and where a foreign armed power can shut down your computer, phone, radio or TV at will.

In 2006, we are just about to enter such a world. This is the age of information warfare, and details of how this new military doctrine will affect everyone on the planet are contained in a report, entitled The Information Operations Roadmap, commissioned and approved by US secretary of defence Donald Rumsfeld and seen by the Sunday Herald.

The Pentagon has already signed off $383 million to force through the document’s recommendations by 2009. Military and intelligence sources in the US talk of “a revolution in the concept of warfare”. The report orders three new developments in America’s approach to warfare:

lFirstly, the Pentagon says it will wage war against the internet in order to dominate the realm of communications, prevent digital attacks on the US and its allies, and to have the upper hand when launching cyber-attacks against enemies.

lSecondly, psychological military operations, known as psyops, will be at the heart of future military action. Psyops involve using any media – from newspapers, books and posters to the internet, music, Blackberrys and personal digital assistants (PDAs) – to put out black propaganda to assist government and military strategy. Psyops involve the dissemination of lies and fake stories and releasing information to wrong-foot the enemy.

lThirdly, the US wants to take control of the Earth’s electromagnetic spectrum, allowing US war planners to dominate mobile phones, PDAs, the web, radio, TV and other forms of modern communication. That could see entire countries denied access to telecommunications at the flick of a switch by America.

Freedom of speech advocates are horrified at this new doctrine, but military planners and members of the intelligence community embrace the idea as a necessary development in modern combat.

Human rights lawyer John Scott, who chairs the Scottish Centre for Human Rights, said: “This is an unwelcome but natural development of what we have seen. I find what is said in this document to be frightening, and it needs serious parliamentary scrutiny.”

Crispin Black – who has worked for the Joint Intelligence Committee, and has been an Army lieutenant colonel, a military intelligence officer, a member of the Defence Intelligence Staff and a Cabinet Office intelligence analyst who briefed Number 10 – said he broadly supported the report as it tallied with the Pentagon’s over-arching vision for “full spectrum dominance” in all military matters.

“I’m all for taking down al-Qaeda websites. Shutting down enemy propaganda is a reasonable course of action. Al-Qaeda is very good at [information warfare on the internet], so we need to catch up. The US needs to lift its game,” he said.

This revolution in information warfare is merely an extension of the politics of the “neoconservative” Bush White House. Even before getting into power, key players in Team Bush were planning total military and political domination of the globe. In September 2000, the now notorious document Rebuilding America’s Defences – written by the Project for the New American Century (PNAC), a think-tank staffed by some of the Bush presidency’s leading lights – said that America needed a “blueprint for maintaining US global pre-eminence, precluding the rise of a great power-rival, and shaping the international security order in line with American principles and interests”.

The PNAC was founded by Dick Cheney, the vice-president; Donald Rumsfeld, the defence secretary; Bush’s younger brother, Jeb; Paul Wolfowitz, once Rumsfeld’s deputy and now head of the World Bank; and Lewis Libby, Cheney’s former chief of staff, now indicted for perjury in America.

Rebuilding America’s Defences also spoke of taking control of the internet. A heavily censored version of the document was released under Freedom of Information legislation to the National Security Archive at George Washington University in the US.

The report admits the US is vulnerable to electronic warfare. “Networks are growing faster than we can defend them,” the report notes. “The sophistication and capability of … nation states to degrade system and network operations are rapidly increasing.”

T he report says the US military’s first priority is that the “department [of defence] must be prepared to ‘fight the net’”. The internet is seen in much the same way as an enemy state by the Pentagon because of the way it can be used to propagandise, organise and mount electronic attacks on crucial US targets. Under the heading “offensive cyber operations”, two pages outlining possible operations are blacked out.

Next, the Pentagon focuses on electronic warfare, saying it must be elevated to the heart of US military war planning. It will “provide maximum control of the electromagnetic spectrum, denying, degrading, disrupting or destroying the full spectrum of communications equipment … it is increasingly important that our forces dominate the electromagnetic spectrum with attack capabilities”. Put simply, this means US forces having the power to knock out any or all forms of telecommunications on the planet.

After electronic warfare, the US war planners turn their attention to psychological operations: “Military forces must be better prepared to use psyops in support of military operations.” The State Department, which carries out US diplomatic functions, is known to be worried that the rise of such operations could undermine American diplomacy if uncovered by foreign states. Other examples of information war listed in the report include the creation of “Truth Squads” to provide public information when negative publicity, such as the Abu Ghraib torture scandal, hits US operations, and the establishment of “Humanitarian Road Shows”, which will talk up American support for democracy and freedom.

The Pentagon also wants to target a “broader set of select foreign media and audiences”, with $161m set aside to help place pro-US articles in overseas media.

source:http://www.sundayherald.com/54975


Software Freedom Law Center Launches Conservancy

Software Freedom Conservancy Offers Nonprofit Umbrella to Free and Open Source Projects

NEW YORK, April 3 /PRNewswire/ -- The Software Freedom Law Center (SFLC), provider of pro-bono legal services to protect and advance Free and Open Source Software (FOSS), today announced it has established the Software Freedom Conservancy to provide free financial and administrative services for a collection of FOSS projects through a single entity.

"The mission of the Conservancy is to provide free and open source software developers with all of the benefits of being a tax-exempt corporate entity without having to do any of the work of setting up and maintaining such an entity," said Dan Ravicher, legal director for the Software Freedom Law Center and one of the initial directors of the Conservancy. "Letting projects pass off the mundane administrative burdens placed on those wishing to benefit from nonprofit status is a significant way to keep developers focused on what they do best -- writing software."

The Software Freedom Conservancy (http://conservancy.softwarefreedom.org/ ) will be a fiscal sponsor for FOSS projects by providing free financial and administrative services to its members. It will provide individual developers protection from personal liability for their projects and will seek to provide participating projects with tax-exempt status, allowing them to receive tax deductible donations. The Conservancy will file a single tax return that covers each of the member's projects and will handle other corporate and tax related issues on behalf of its members. In addition, the Conservancy can hold project assets and manage them at the discretion of the project, which removes another fiscal burden from developers who are focused on software innovation.

"We understand the importance of having our legal, financial and administration houses in order, but our focus and energy needs to be on our code," said Alexandre Julliard, The Wine Project, one of the Conservancy's initial members. "The Software Freedom Conservancy gives us the opportunity to join with fellow community projects to gain needed legal and fiscal protections in a market where disruptive technologies such as open source software sometimes generate aggressive actions from other market participants."

Other initial members of the Conservancy include SurveyOS, BusyBox and uClibc. For more information about the Conservancy and how to become a member, please visit http://conservancy.softwarefreedom.org/ .

About The Software Freedom Law Center

The Software Freedom Law Center -- directed by Eben Moglen, one of the world's leading experts on copyright law as applied to software -- provides legal representation and other law-related services to protect and advance Free and Open Source Software. The Law Center is dedicated to assisting nonprofit open source developers and projects. The Conservancy is an example of how the Center is working to address the needs of FOSS projects that are playing significant roles in the software market. For criteria on eligibility and to apply for assistance from SFLC, please visit the website at www.softwarefreedom.org.

source:http://biz.yahoo.com/prnews/060403/sfm105.html



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