Another round of changes at Mandriva
[Posted March 15, 2006 by corbet]
Back in July, 1998, LWN received
a message from
Gaël Duval announcing the first Linux-Mandrake release. This new
distribution was a reworked version of the Red Hat 5.1 GPL release with
KDE 1.0 (then not well supported by Red Hat) integrated. It was
intended to be an easy to use, desktop-oriented distribution.
Linux-Mandrake was also a classic case of an itch being scratched:
Gaël put together the distribution he wished he had, released it onto
the net, and immediately departed on vacation. The response he found on
his return was rather beyond his expectations.
Shortly thereafter, MandrakeSoft was founded in an attempt to build a
business around Linux-Mandrake. The story since then has been a series of
ups and downs.
The Linux bubble hit MandrakeSoft harder than many
other companies; when the bottom fell out, MandrakeSoft found itself with a
heavy load of expenses, an externally-imposed management team which had
little interest in community or the Mandrake distribution, and a rapidly
shrinking bank account. After going into bankruptcy, dumping the managers,
and refocusing on its real customers, MandrakeSoft actually managed to turn
a small profit. Last year, MandrakeSoft acquired Conectiva and renamed
itself Mandriva.
On March 7, the company released its
first quarter results, which clearly show that Mandriva is not, yet,
out of the woods. These results are, as described by the report,
"disappointing." Mandriva is no longer making a profit; instead, the
company shows a €590,000 loss. Revenue is nearly flat from one year
ago, despite the acquisition of Conectiva in the mean time.
So why is Mandriva hurting again? The report gives a number of reasons,
including "slower than expected" revenue from OEM contracts, fewer retail
sales, money spent on execution of large enterprise accounts, and higher
marketing costs. The drop in retail sales is blamed on the spread of
broadband Internet connections, which may be partially true. But the
availability of other desktop-friendly, free distributions has also grown,
and some of those alternatives are quite good. If Mandriva wants to
continue to sell individual boxes with Linux disks, it needs to offer
something which is clearly better. Mandriva's recent releases have not
been that much better.
Mandriva is responding to these results in a number of ways. Cost cutting
will be a necessary part of that response. From the report, it seems that
Mandriva is engaging in some belated reduction of redundancies caused by
the Conectiva acquisition. Unfortunately, it seems that engineering is one
place where the company feels over-staffed at the moment, so a number of
developers have been let go. So Mandriva's participation in community
development, already much reduced from its early years, will shrink again.
The company has also laid off Gaël Duval, the person who got the whole
thing started. Jacques Le Marois, another founder of MandrakeSoft, is also
on the way out. This company, it seems, is now completely disconnected from
its origins.
The report notes that "enterprise services" saw a big increase over the
quarter, to the point that they account for 42% of total sales. So
"enterprise" appears to be the company's direction for the future. To that
end, Mandriva has been working on an administrative tool called "Pulse"
which, it is said, will be released in the near future. There is a new
distribution for individuals in the works; it will be called "Mandriva
One." But this distribution almost looks like an afterthought.
The enterprise market may be where the money is, but there is some
competition there too. As Mandriva aims for the corporate clients, it will
be running up against Red Hat and Novell, and, to an extent, against the
corporate services offered by companies like IBM, HP, and others. Mandriva
looks like a bit of an underdog in that crowd. Underdogs can be
successful, but their life is not always easy. In response to pressures
from this market, Mandriva seems likely to move further away from its
community roots. It is telling, in that regard, that Mandriva's reports no
longer mention the Mandriva
Club, which was once an important part of the company's business.
Mandriva moved away from its community roots once before, and things did
not go particularly well. One can only hope that the prospects are better
this time around.
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