Hi everyone, I am forwarding the today's issue of the "Red Eye", which is a mailing list of the Venture Capital magazine "Red Herring". Since it deals with the business side of Linux, I thought this might be of interest to some of you. The most important point is the quote at the very end: >And how does Mr. Twickler think Linux will fare in the next >year? "When you consider the number of companies dedicated >to Linux and how many public companies existed six months >ago compared with how many will be around six months from >now, it's going to be huge," he said. "There is just going >to be such a large amount of capital applied to making Linux >commercially viable." Ayal >From: The Red Eye <[EMAIL PROTECTED]> >Reply-To: [EMAIL PROTECTED] >To: "Ayal Sharon" <[EMAIL PROTECTED]> >Subject: Betting the farm on Linux - Red Herring Red Eye, 1/6/2000 >Date: 13 Jan 2000 05:47:26 -0000 > > >BETTING THE FARM ON LINUX > >Well, the millennium has begun, and while the stock market >seems to be in the middle of a massive correction, I would >still say that all is well in the technology business world. >As this is the beginning of a year that is sure to be filled >with new products, new business models, and new innovation, >we thought it would be timely to talk with the head of a >company that embraces all three: Bruce Twickler, president >and CEO of Andover.net (Nasdaq: ANDN), the largest Linux and >open-source community network. > >Linux is poised to gain even more momentum in 2000, as shown >by the number of Linux initial public offerings that hit the >market in the last six months of 1999, as well as the >numerous investments large hardware companies have made in >this space. Mr. Twickler, a true proponent of the >open-source movement, took his company public on December 9 >using W.R. Hambrecht's unique OpenIPO model. Enabling its >community of users to be a part of the IPO was a successful >endeavor for Andover.net, as well as for W.R. Hambrecht. It >proved that giving retail investors access to the market at >the early stages is not only equitable and fair, but can >also be extremely profitable. > >Read on to see Mr. Twickler's perspective on OpenIPO and his >plans for his company's future. As always, we look forward >to your feedback. > >-- Tony Perkins <[EMAIL PROTECTED]> > > >PREVIOUS RED EYE >* Taking the brightest and the best. > http://www.redherring.com/insider/1999/1223/news-redeye.html > >------------------------------------------------------------ > >LINUX CONTAGION > >SAN FRANCISCO, CALIFORNIA -- When Bruce Twickler began >shopping his company around to different investment banks >early last year, he kept hearing the same response: "Yeah, >it's interesting. Let's raise your private round and take >you public next year." But Mr. Twickler knew that Linux >fever was catching in 1999, and he needed to get his company >out there before the market became saturated. So he took his >offering to W.R. Hambrecht, the maverick investment bank >that's attempting to turn the IPO process on its head with >its innovative OpenIPO model. What Mr. Twickler discovered >was that Hambrecht already had three research analysts >covering Linux, and they got his reasoning for wanting to go >public sooner rather than later -- in fact, they wanted to >accelerate the process. > >* W.R. Hambrecht invites all to its Salon.com IPO. > http://www.redherring.com/insider/1999/0617/inv-salon.html > >* Viva Las Vegas! Linux goes mainstream. > http://www.redherring.com/insider/1999/1119/news-comdexmood.html > >"Hambrecht really understood the market, and that provided >us with many benefits," said Mr. Twickler. "We wouldn't have >been put on top of other investment banks' programs." > >As well, Mr. Twickler was really impressed with the research >support Hambrecht has provided (and will continue to >provide). "There is no comparable overall market view >anywhere that has as comprehensive and insightful a view of >what Linux is all about," said Mr. Twickler. "In terms of >understanding the market and where we're going, as well as >our goals and objectives, they will provide us with the best >coverage." > >OPEN SESAME >But beyond Hambrecht's clear understanding of Linux, to Mr. >Twickler the most attractive feature of the OpenIPO process >was the ability to involve the open-source community in the >offering -- it was the only way to give his loyal audience >an opportunity to buy into something they had essentially >created. What Andover.net is all about is an aggregated >network of Linux and open-source sites for hard-core >developers, programmers, and anyone else interested in this >fledging movement. > >* The Red Eye goes Dutch with Bill Hambrecht. > http://www.redherring.com/insider/1999/1216/news-redeye.html > >In 1996, when his software company was earning less money >than his first Web site (www.davecentral.com, a shareware >archive), Mr. Twickler decided to rededicate his resources >from software development tools to building a community of >Web sites for Linux, a movement he thought had some legs. >Since that time Andover.net has built a network of 14 sites, >acquiring some but building most. And the results are rather >impressive. The company claims to receive more than 2 >million page views monthly, and visitors to its sites spend >an average of eight hours per month on them. By comparison, >most visitors to Amazon.com (Nasdaq: AMZN) spend 12 minutes >a month on the site. > >EXPANSION PLANS >Moving forward, the company plans to build out its >advertising strategy as well as it e-commerce and corporate >service revenue models. This includes expanding the >offerings available on its Thinkgeek Web site, launched in >October. As well, the company plans to create a corporate >service portal staffed by Linux support representatives. > >And how does Mr. Twickler think Linux will fare in the next >year? "When you consider the number of companies dedicated >to Linux and how many public companies existed six months >ago compared with how many will be around six months from >now, it's going to be huge," he said. "There is just going >to be such a large amount of capital applied to making Linux >commercially viable." > >That's good to hear from the guy who's betting the farm on >Linux. Now we'll just have to wait and see what happens. > >------------------------------------------------------------ > >Mark your calendars for Red Herring events! > >Venture Market South - February 29-March 1, 2000 Ð Atlanta GA >Venture 2000 - April 30-May 2, 2000 - Lake Tahoe CA >Venture Market Europe - May 31-June 1, 2000 - London, UK >Herring on Hollywood - August 1-2, 2000 - Los Angeles CA >Venture Market East - September 26-27, 2000 - Cambridge MA >NDA 2000 - October 29-31, 2000 - Carlsbad CA > >http://www.redherring.com/events/ > >------------------------------------------------------------ > >The Internet Bubble: Inside the overvalued world of >high-tech stocks and what you need to know to avoid the >coming shakeout. > >This insider book by Anthony B. Perkins & Michael C. Perkins >and published by Harperbusiness is on bookshelves now. > >Red Eye readers may order The Internet Bubble at a 30 >percent discount through Barnesandnoble.com: >http://shop.barnesandnoble.com/booksearch/isbnInquiry.asp?mscssid=FA7PG5G68VS12JM60017QJ1W7MR97NR7&sourceid=00003726640210192565&bfdate=07%2D28%2D1999+18%3A24%3A55&pcount=0&srefer=&isbn=0066640008 > >The book is also available at a 30 percent discount through >Amazon.com: >http://www.amazon.com/exec/obidos/ASIN/0066640008/qid=933014298/sr=1-2/002-8041654-2311246 > >------------------------------------------------------------ > >Get a FREE issue of RED HERRING magazine! > >Try a RISK-FREE issue and stay on the cutting edge of >technology. If you decide to subscribe, you'll pay only $29 >for a total of 12 issues and SAVE 52 percent off the cover price! >New subscribers only, please. > > https://www.redherring.com/service/circ/subs_WB.html > >------------------------------------------------------------ > >COMMENTS? >Please send your comments to Nicole Sperling, a regular >contributor to the Red Eye, at [EMAIL PROTECTED] > >------------------------------------------------------------ > >To unsubscribe or change the way you receive The Red Eye, >go to: > >http://www.redherring.com/mail > >You may also unsubscribe by replying to this email with the >word "unsubscribe" in the SUBJECT field of your reply. > >------------------------------------------------------------ > > (c) Red Herring Communications > >------------------------------------------------------------ > >This copy delivered to ([EMAIL PROTECTED]). ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com ================================================================= To unsubscribe, send mail to [EMAIL PROTECTED] with the word "unsubscribe" in the message body, e.g., run the command echo unsubscribe | mail [EMAIL PROTECTED]
