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Date:      Thu, 5 Apr 2001 00:46:33 -0700
From:      "Ted Mittelstaedt" <tedm@toybox.placo.com>
To:        "David Xu" <bsddiy@21cn.com>, <freebsd-questions@FreeBSD.ORG>
Subject:   RE: BSDi Acquired by Embedded Computing Firm Wind River
Message-ID:  <002901c0bda4$88ae89c0$1401a8c0@tedm.placo.com>
In-Reply-To: <101731842.20010405084557@21cn.com>

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I think that the acquisition will both help and also do a
certain amount of damage to the BSD movement.

It will help in that the embedded systems market has turned
into one of these markets that is a cash cow in the high
tech industry.  Further, embedded systems are nowhere near
as political, because most of the time the end users cannot
determine what operating system is being used to power their
device just by looking at it.  Thus, you don't have people like
Microsoft spending millions of dollars to try to pressure 
manufacturers of radios, TV's microwaves and such to use their
shoddy operating system.

Certainly, it's very important to have a rich commercial
sugar daddy using your product, because as PC hardware continues
to increase in complexity, someone has to fund development
of device drivers and things such as that which can sometimes
require a lot of business muscle to convince manufacturers to
hand over programming specs.

But, I think that there's going to be some perceptual damage.
BSDi was the flagship commercial BSD company, and the fact
that the flagship BSD company was backed into a financial
corner and forced to sell itself, is deeply embarassing.  Note
that the press release explicitly states that financial details
won't be disclosed.  There's a reason for this - and until those
details are published (if ever) most people are going to 
conclude that it's because the sale price was very low.  Thus,
the valuation of BSD as a commercial OS is very low too.

Note that BSDi has had no qualms about publishing investor
dollar amounts in the past, and you can't have it both ways.
Either your company has a policy of never, ever, disclosing
(in which case you won't even be publically traded) or you
disclose everything, you can't have it both ways and retain
credibility.

There are going to be a lot of observers that are going to conclude
that BSD failed in a bid to become a commercial general purpose OS,
and that the future is Linux on the desktop.  It's not surprising
that slapped all over the face of the BSDi website is the
statement that the new iXsystems will be concentrating on server
development.  They are playing the same card I played when I
wrote my book - we all know that from a marketing perspective the
idea that FreeBSD is going to be a significant desktop presence is
a joke, Linux took that away.  So, the only other avenue to stay
in the game is to go the other direction and focus on server
development.  Espically since really good servers sacrifice a lot of
stuff you need on a desktop, and vis-versa, a strong case can be
made that since Linux is concentrating on the desktop, they are
by default abrogating the server market.  Microsoft has shown the
world the folly of attempting to make a one-size-fits-all operating
system that can work as both a server and a desktop, you end up
sacrificing so much that the resultant product cannot do either job
well.

The big danger of doing the server focus thing, though, is that you
can end up being marginalized.  Look at what's going on with the
commercial UNIX's like Solaris and others.  Every year those OS's
get higher, and higher, and higher end.  It's getting very difficult
to buy a Sun product these days that will work out-of-the-box as a
small to medium business server, and still be cost-effective.  As a result,
Sun is rapidly turning into a company that sells 20 servers a year
that each cost 100 million dollars.  While this makes some impressive
sales figures, one day you wake up and find that the 20 customers that
were buying 100 million dollar servers have all stopped doing it, and
you end up like Cray did, you go out of business.

Ted Mittelstaedt                      tedm@toybox.placo.com
Author of:          The FreeBSD Corporate Networker's Guide
Book website:         http://www.freebsd-corp-net-guide.com


>-----Original Message-----
>From: owner-freebsd-questions@FreeBSD.ORG
>[mailto:owner-freebsd-questions@FreeBSD.ORG]On Behalf Of David Xu
>Sent: Wednesday, April 04, 2001 5:46 PM
>To: freebsd-questions@FreeBSD.ORG
>Subject: BSDi Acquired by Embedded Computing Firm Wind River
>
>
>Hello All,
>
>I know BSDi and FreeBSD have some very important relation.
>according news letter, Wind River has interest in making
>proprietary closed software.
>just want to know, will the acquisition hurt FreeBSD?
>
>-- 
>Best regards,
>David Xu
>
>
>
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