October 28, 2008

Shuttleworth: I will fund Canonical for 3-5 more years

No profits yet for Ubuntu but 'business model is sound'

By Chris Kanaracus, IDG News Service

Mark Shuttleworth , founder of Canonical, the commercial backer of the Ubuntu Linux operating system, may have to fund the company for three to five more years.

"We continue to require investment and I continue to be careful with my pennies in making those investments, but I consider this a good proposition," said the billionaire technologist. "Canonical is not cash-positive, but our offering is very attractive to those who want to pinch their pennies in the Linux space."

The poor economic climate could, in fact, drive business, Shuttleworth added.

Canonical, which makes money by providing services and support for its software, now has annual revenue in the "several million" dollar range, Shuttleworth said.

The company's lack of profits has not shaken Shuttleworth's belief in its business model. "We are entering a time when there's a real commoditisation of the desktop, so I don't think it would be possible to make a lot of money, or even any money, [selling the Linux] desktop," he said. "... The only way to build businesses around Linux is around services."

Shuttleworth was speaking ahead of the release this week of Ubuntu 8.10, which includes updates around 3G networks and virtualization.

Looking forward, Canonical expects Ubuntu's development will embrace three key trends, Shuttleworth said: Touch-based interactivity ("most devices will have a touch dimension within them"); 3-D imagery ("the lines between the 2-D desktop and 3-D gaming environment are going to blur"); and the integration of Web-like features with the desktop experience.

Newsletters

Our Daily & Weekly Newsletters highlight breaking news, vital issues, expert analysis and solutions to help you stay ahead of developments in the industry.