Canonical: Should Shuttleworth Sell Ubuntu Company?
Quick, name an operating system company that’s struggling to push beyond PCs into the smartphone and tablet markets? The obvious answer is Microsoft (MSFT) with Windows 8. But in the Linux and open source world, Canonical’s Ubuntu also applies. And if you look at the Ubuntu Edge smartphone crowdfunding effort, you may see that Canonical needs far more cash for its mobile push. The VAR Guy’s spin: It’s time for Ubuntu Founder Mark Shuttleworth to seek a buyer for his company.
Ubuntu Edge is Canonical’s forthcoming smartphone. It runs Ubuntu and Android, and becomes a full-blown PC when connected to a monitor, keyboard, etc. Canonical launched a $32 million crowdfunding campaign to get Ubuntu Edge off the ground. But the campaign has apparently stalled.
Staggering Sums
For Ubuntu Founder Mark Shuttleworth it’s time to take a hard look in the mirror while considering these numbers: Microsoft has spent $1 billion marketing Windows 8 and Surface tablets. Windows 8 generated mixed results and Surface RT triggered a nearly $900 million write off.
Those Microsoft numbers are massive. And they raise a huge question: Can Canonical really afford a seat in the high stakes smartphone and mobile game? Are the company’s pockets deep enough? Would $32 million — even if crowdfunding had succeeded — really be enough money? It’s difficult to say for sure, since Canonical is privately held and does not disclose its revenues or net income.
For most of its life, Ubuntu has been a darling in the Linux desktop market. And the company also has a good following on servers. But additional offerings like Ubuntu One (file sharing and storage) and Landscape (remote Ubuntu management) haven’t exactly set the world on fire.
And now comes the big mobile challenge. The VAR Guy suspects it will take hundreds of millions of dollars to make Edge a success. Shuttleworth is rich but does he want to keep opening his own wallet even wider? Or is it time for Canonical to find a new owner? Hmmm…
Is The VAR Guy crazy? Before you answer consider this reality: During Steve Jobs’ most desperate hour at Apple, he welcomed a $150 million investment from Microsoft.
Apple Fanboys lamented the move. But Jobs stabilized Apple and went on to give the world iPhones, iPads and iEverything Else.
Can Shuttleworth work some financial magic of his own at Canonical? And might it ultimately include an outside investor or a company sale? Hmmm….
At some point Ubuntu took the
At some point Ubuntu took the wrong path and that’s it. It was pretty much around the time when they decided brown isn’t the right color for a Desktop and went…. violet.
Soon there could be a demand for a solid and full free (as in freedom) Linux Distro because of the NSA spying Issue, but Canonical wont be a providing Party in this, they lost their users trust ages ago.
Many would disagree and see
Many would disagree and see Ubuntu’s change as a positive one for mobile adaptivity. Look where Gnome went. It’s currently off the tracks and trying to get back in the door by siding with Wayland.
I agree also. At this point
I agree also. At this point no matter what they do its game over. The HOLE ship from bow to stern has made and partaken in wrong decisions. As far as shuttleworth is concerned not much you can say, he was the CAPTAIN of this ship. There are other Very fine Debian based alternatives at the top of the support food chain.
I completely disagree, Ubuntu
I completely disagree, Ubuntu has always pushed the Linux desktop forward, haven’t Ubuntu offered Netbook Remix and Unity, what would have GNOME Shell been?
Sell what? It’s bleeding red
Sell what? It’s bleeding red ink everywhere…
You talking about
You talking about Microsoft…
Microsoft is not losing
Microsoft is not losing money. The company had a $4.97 billion profit in Q4 2013 (which ended in June). That profit arrived even with the $900 million Surface RT write off. Some Microsoft business units are struggling but how many Fortune 500 companies generate $5 billion in quarterly profits?
-jp
The Ubuntu Edge is an example
The Ubuntu Edge is an example of brilliant marketing, compared to that $1B budget you mention. Furthermore, Canonical would gain a passionate core community of 20k beta testers, app developers and ambassadors.
Let’s reconnect in six months
Let’s reconnect in six months to compare notes…
-jp
This really wasn’t about
This really wasn’t about selling Phones as much as it was about exposure. They could have easily received private funding.
If the Phone sells or not, the point was made that Canonical is a force in the market and a market for Linux Phones exist. And it was about exposure for Ubuntu as a Desktop OS.
They win either way. As far as selling? That’s kind of laughable to be honest.
“since Canonical is privately
“since Canonical is privately held and does not disclose its revenues or net income”
Canonical is a UK limited company and its accounts are therefore open to anyone with two minutes of time and a single British Pound to spare (see http://www.companieshouse.gov.uk/).
For the accounting period ended December 2012 its turnover was $56m on which it showed a net loss of $10m.
I love the way bloggers and
I love the way bloggers and journos have been hoodwinked into believing that Canonical’s accounts are private. The best kept secret in open source software just got let out of the bag..
Fair point. We’ll give the
Fair point. We’ll give the data a look.
-jp
I wouldn’t compare Microsoft
I wouldn’t compare Microsoft to Canonical as they are vastly different. One area is open-source, another is Microsoft’s mobile stormy climate and yet another Microsoft is on the nose due to NSA and other dislikes people have associated with the company.
Canonical is just starting to gel. It’s creating its culture and people like it. Mark could be the next Steve Jobs if he pulls off professionalism and unique ideas. It’s coming together in the mind of customers, but can it hold out.
Canonical does need cash. They could remedy this dilemma by floating onto the stock market, but they would then have to tailor toward income producing works.
Canonical and an IPO? Not
Canonical and an IPO? Not sure the company has the right financial growth history and a path to profits that would attract IPO audience.
-jp
I hope that Canonical DOES
I hope that Canonical DOES sell Ubuntu but then again…. it isn’t worth anything….. they might aswell give up and give Ubuntu to the community under it’s branding….. maybe somebody else can do something with it to actually “improve” it
i don’t see why HP and Dell
i don’t see why HP and Dell don’t get a little behind Linux Desktop. I mean how long are they going to sit back and let Microsoft drive them off to oblivion. Windows 8 has been a real disaster for these companies that still make a large part of their revenue from desktop and laptop machines. So why don’t they hedge their bets a little bit – invest a few ten’s of millions into making a real linux desktop. Not much to loose and everything to gain with such a small investment.
Microsoft seems poised to
Microsoft seems poised to invest heavily in Dell, if Dell goes private. Also, HP has invested heavily in Chrome OS and Android as the hedge…
-jp
IPO. I’ve been waiting for
IPO. I’ve been waiting for years to invest in Canonical. I’ll bet that there are many like me. Which is why I’ve been waiting for years to invest in Canonical.
I think Canonical need to
I think Canonical need to make their minds up about what they want to be. Do they want to be like Red Hat and SuSE and sell services with a free OS thrown in or do they want to be like Apple. Selling bespoke hardware with tight bespoke software integration.
Canonical are too small to be playing in all these different areas. They need to pick one to focus on and get really good at it to grow as a company.
Yes. Its the best thing to do
Yes. Its the best thing to do at this point to get rid of the shuttleworth virus! Then and only then can Ubuntu and its community begin to heal.
Let’s not call Shuttleworth a
Let’s not call Shuttleworth a virus. While his leadership has caused some controversy over the years, Shuttleworth also has done a lot right for the free software movement and for Linux on the desktop. He succeeded where many entrepreneurs failed…
-jp
If Ubuntu are to get closer
If Ubuntu are to get closer to a ‘Steve Jobs Point’, they will need to make sure their products work seamlessly with fluidity while offering something different.
Although they may not get the $32 million they require, what they are advertising is bold, unique and opens up technology to a new way of thinking. Or at least give the opportunity of providing the output for something that people have wanted.
At this current moment in time, selling off Ubuntu would be a mistake, especially since they are showing innovation in a world where desktop and mobile technology is becoming stagnant.
Canonical suffers from the
Canonical suffers from the NIH syndrome. Moving the company to the US might change things
I am sure mark is right. I
I am sure mark is right. I cant wait to buy an ubuntu phone. It is the future of computing, I have 0 doubt.
Hi Neuro1985 and Anonymous
Hi Neuro1985 and Anonymous (times two): I’m starting to turn my attention to Ubuntu 13.10. Hoping that is a landmark release that restores some of the buzz about Canonical’s core code. Edge still seems like a long-shot to me.
-jp
I think instead of going for
I think instead of going for a high end smart phone which would have to compete directly with the iPhone, why not make a dirt cheap smart phone for emerging markets i.e. India, Russia, Brazil, China, etc. I think even big companies in the developed world would like to supply employees with something like this as long as it is functional, secure and has half decent durability. This is what I thought was the vision of Canonical?