[Gloucs] Mandrake bankrupt

bjh gloucs at mailman.lug.org.uk
Thu Jan 16 22:38:00 2003


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Guy, I respect your views concerning the quality of the Mandrake =
product, and my comment concerning the marketing of "free" product was =
made as a general comment towards the so called dotcom revolution in =
general.

Following all the "hype" of recent years from a number of companies =
providing "free" services, the world economy is now littered with the =
sad remains of so many "star" performers of the international stage.

The fact of business life is that if you offer a "free product" which =
costs money to produce and promote, you have to have a balancing income =
(profit) generated from somewhere or something else, so that such profit =
can cover operational costs in order to, at the very least, "break even" =
for the company as a whole.

Looking at the Mandrake site ,and the company information, their own =
comments give a possible clue as to what has gone horribly wrong, =
namely,
"created by several young Linux enthusiasts in November 1998"
 - to -
"it has gone from 3 to 100 employees in 2 years".

Unfortunately people cost a lot of money as "employees" and profits need =
to be generated to pay for these huge operational costs.

Any restructuring acceptable to the French court-appointed Administrator =
is likely to require large job losses to reduce operating costs, which =
will, unfortunately reduce the companies ability to improve its product =
services and marketing as quickly as it has obviously done in the past.

The "hundreds of independent developers all around the world constantly =
improving the Linux-Mandrake product" will always help of course, but =
the chances of a lot of these people now switching to work on other =
companies products is probably quite high, and if this does happen will =
follow the normal business pattern in such situations=20

As I said in my response to John, lets hope they will be in a position =
to bring out Mandrake 9.1 and survive the difficult period that they =
will now go through with loss of customer confidence etc., following the =
Press release about their Administration.

Barrie Haycock

The full Mandrake site statements are as follows:

"Background
In November 1998, several young Linux enthusiasts met on the Internet =
and created MandrakeSoft. This start-up has since become an =
international reference in Open Source software and Linux with its =
Linux-Mandrake distribution.=20
MandrakeSoft's strategy is based on promoting Linux for users, from =
beginners to experts, from individuals to corporate users, by creating a =
comprehensive and customizable range of services developed around its =
Linux product line.

Dazzling development and success...

Several factors have contributed to the company's exceptional growth, as =
it has gone from 3 to more than 100 employees in 2 years: Fully =
respecting Linux philosophy, MandrakeSoft provides the source code for =
its distribution on our Web site (www.linux-mandrake.com). Hundreds of =
independent developers all around the world are constantly improving the =
Linux-Mandrake product, code-named Cooker, and helping make it one of =
the most simple, complete and powerful Linux solutions available. The =
company's business model based on leveraging rapid worldwide development =
makes Linux-Mandrake the most international Linux distribution: it is =
available in more than 40 languages. In addition, the company has =
offices in both France and the United States."=20


----- Original Message -----=20
From: "Guy Edwards" <guy_j_edwards@hotpop.com>
To: "MAILING LIST" <gloucs@mailman.lug.org.uk>
Sent: Thursday, January 16, 2003 6:36 PM
Subject: Re: [Gloucs] Mandrake bankrupt


> Actually John, the words are "bankruptcy protection" (I'm a bit tetchy
> about my fav. distro :-) not "Mandrake Bankrupt".
>=20
> It's supposed to give them a breather to be able to restructure and =
sort
> themselves out.
>=20
> Also note that this wasn't the result of selling free software, more
> down to the hiring of a corrupt/inept management team. er.. allegedly
> (he adds, thinking of the online mailing list archives).=20
>=20
>=20
> On Thu, 2003-01-16 at 12:33, john mckeown wrote:
> > Mandrake have filed for bankruptcy to defend
> > themselves against the continuing heavy drain
> > from penalty clauses incurred some years ago=20
> > in E-Learning ventures before the dot.com crash
> >=20
> > =
http://www.mandrakesoft.com/company/press/briefs?n=3D/mandrakesoft/news/2=
405
> > http://slashdot.org/articles/03/01/15/1727240.shtml?tid=3D147
> >=20
> > _______________________________________________
> > gloucs mailing list
> > gloucs@mailman.lug.org.uk
> > http://mailman.lug.org.uk/mailman/listinfo/gloucs
>=20
>=20
>=20
>=20
> _______________________________________________
> gloucs mailing list
> gloucs@mailman.lug.org.uk
> http://mailman.lug.org.uk/mailman/listinfo/gloucs
> 
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<BODY>
<DIV><FONT face=3DArial size=3D2>Guy, I respect your views concerning =
the quality of=20
the Mandrake product, and my comment concerning the marketing of "free" =
product=20
was made&nbsp;as a&nbsp;general comment towards the so called dotcom =
revolution=20
in general.<BR></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Following all the "hype" of recent =
years from a=20
number of companies providing "free" services, the world economy is now =
littered=20
with the sad remains of so many "star" performers of the international=20
stage.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>The fact of business life is that if =
you offer a=20
"free product" which costs money to produce and promote, you have to =
have a=20
balancing income (profit) generated from somewhere or something else, so =
that=20
such profit can cover operational costs in order to, at the very least, =
"break=20
even" for the company as a whole.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Looking at the Mandrake site ,and the =
company=20
information, their own comments&nbsp;give a possible clue as to what has =
gone=20
horribly wrong, namely,<BR><STRONG>"created by several young Linux =
enthusiasts=20
in November 1998"</STRONG></FONT></DIV>
<DIV><FONT face=3DArial size=3D2><STRONG>&nbsp;- to -<BR>"it has gone =
from 3 to 100=20
employees in 2 years".</STRONG></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Unfortunately people cost a lot of =
money as=20
"employees" and profits need to be generated to pay for these huge =
operational=20
costs.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Any restructuring acceptable to the =
French=20
court-appointed Administrator is likely to require large job losses to =
reduce=20
operating costs, which will, unfortunately reduce the companies ability =
to=20
improve its product services and marketing as quickly as it has =
obviously done=20
in the past.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>The "hundreds of independent developers =
all around=20
the world&nbsp;constantly improving the Linux-Mandrake product" will =
always help=20
of course, but the chances of a lot of these people now switching to =
work on=20
other companies products is probably quite high, and if this does happen =
will=20
follow the normal business pattern in such situations&nbsp;</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>As I said in my response to John, lets =
hope they=20
will be in a position to bring out Mandrake 9.1 and survive the =
difficult period=20
that they will now go through with loss of customer confidence etc., =
following=20
the Press release about their Administration.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Barrie Haycock</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial color=3D#800000 size=3D2>The full Mandrake site =
statements are=20
as follows:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2><STRONG></STRONG></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2><STRONG>"Background<BR>In November =
1998, several=20
young Linux enthusiasts met on the Internet and created =
MandrakeSoft.</STRONG>=20
This start-up has since become an international reference in Open Source =

software and Linux with its Linux-Mandrake distribution. =
<BR>MandrakeSoft's=20
strategy is based on promoting Linux for users, from beginners to =
experts, from=20
individuals to corporate users, by creating a comprehensive and =
customizable=20
range of services developed around its Linux product =
line.<BR></FONT><BR><FONT=20
face=3DArial size=3D2><STRONG>Dazzling development and=20
success...</STRONG></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Several factors have contributed to the =
company's=20
exceptional growth, as <STRONG>it has gone from 3 to more than 100 =
employees in=20
2 years</STRONG>: Fully respecting Linux philosophy, =
<STRONG>MandrakeSoft=20
provides the source code for its distribution on our Web site</STRONG>=20
(</FONT><A href=3D"http://www.linux-mandrake.com"><FONT face=3DArial=20
size=3D2>www.linux-mandrake.com</FONT></A><FONT face=3DArial size=3D2>). =
Hundreds of=20
independent developers all around the world are constantly improving the =

Linux-Mandrake product, code-named Cooker, and helping make it one of =
the most=20
simple, complete and powerful Linux solutions available. The company's =
business=20
model based on leveraging rapid worldwide development makes =
Linux-Mandrake the=20
most international Linux distribution: it is available in more than 40=20
languages. In addition, the company has offices in both France and the =
United=20
States." </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>----- Original Message ----- </FONT>
<DIV><FONT face=3DArial size=3D2>From: "Guy Edwards" &lt;</FONT><A=20
href=3D"mailto:guy_j_edwards@hotpop.com"><FONT face=3DArial=20
size=3D2>guy_j_edwards@hotpop.com</FONT></A><FONT face=3DArial=20
size=3D2>&gt;</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>To: "MAILING LIST" &lt;</FONT><A=20
href=3D"mailto:gloucs@mailman.lug.org.uk"><FONT face=3DArial=20
size=3D2>gloucs@mailman.lug.org.uk</FONT></A><FONT face=3DArial=20
size=3D2>&gt;</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Sent: Thursday, January 16, 2003 6:36=20
PM</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Subject: Re: [Gloucs] Mandrake=20
bankrupt</FONT></DIV></DIV>
<DIV><FONT face=3DArial><BR><FONT size=3D2></FONT></FONT></DIV><FONT =
face=3DArial=20
size=3D2>&gt; Actually John, the words are "bankruptcy protection" (I'm =
a bit=20
tetchy<BR>&gt; about my fav. distro :-) not "Mandrake Bankrupt".<BR>&gt; =

<BR>&gt; It's supposed to give them a breather to be able to restructure =
and=20
sort<BR>&gt; themselves out.<BR>&gt; <BR>&gt; Also note that this wasn't =
the=20
result of selling free software, more<BR>&gt; down to the hiring of a=20
corrupt/inept management team. er.. allegedly<BR>&gt; (he adds, thinking =
of the=20
online mailing list archives). <BR>&gt; <BR>&gt; <BR>&gt; On Thu, =
2003-01-16 at=20
12:33, john mckeown wrote:<BR>&gt; &gt; Mandrake have filed for =
bankruptcy to=20
defend<BR>&gt; &gt; themselves against the continuing heavy =
drain<BR>&gt; &gt;=20
from penalty clauses incurred some years ago <BR>&gt; &gt; in E-Learning =

ventures before the dot.com crash<BR>&gt; &gt; <BR>&gt; &gt; </FONT><A=20
href=3D"http://www.mandrakesoft.com/company/press/briefs?n=3D/mandrakesof=
t/news/2405"><FONT=20
face=3DArial=20
size=3D2>http://www.mandrakesoft.com/company/press/briefs?n=3D/mandrakeso=
ft/news/2405</FONT></A><BR><FONT=20
face=3DArial size=3D2>&gt; &gt; </FONT><A=20
href=3D"http://slashdot.org/articles/03/01/15/1727240.shtml?tid=3D147"><F=
ONT=20
face=3DArial=20
size=3D2>http://slashdot.org/articles/03/01/15/1727240.shtml?tid=3D147</F=
ONT></A><BR><FONT=20
face=3DArial size=3D2>&gt; &gt; <BR>&gt; &gt;=20
_______________________________________________<BR>&gt; &gt; gloucs =
mailing=20
list<BR>&gt; &gt; </FONT><A =
href=3D"mailto:gloucs@mailman.lug.org.uk"><FONT=20
face=3DArial size=3D2>gloucs@mailman.lug.org.uk</FONT></A><BR><FONT =
face=3DArial=20
size=3D2>&gt; &gt; </FONT><A=20
href=3D"http://mailman.lug.org.uk/mailman/listinfo/gloucs"><FONT =
face=3DArial=20
size=3D2>http://mailman.lug.org.uk/mailman/listinfo/gloucs</FONT></A><BR>=
<FONT=20
face=3DArial size=3D2>&gt; <BR>&gt; <BR>&gt; <BR>&gt; <BR>&gt;=20
_______________________________________________<BR>&gt; gloucs mailing=20
list<BR>&gt; </FONT><A href=3D"mailto:gloucs@mailman.lug.org.uk"><FONT =
face=3DArial=20
size=3D2>gloucs@mailman.lug.org.uk</FONT></A><BR><FONT face=3DArial =
size=3D2>&gt;=20
</FONT><A =
href=3D"http://mailman.lug.org.uk/mailman/listinfo/gloucs"><FONT=20
face=3DArial=20
size=3D2>http://mailman.lug.org.uk/mailman/listinfo/gloucs</FONT></A><BR>=
<FONT=20
face=3DArial size=3D2>&gt; </FONT></BODY></HTML>

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