Looks like Mandrake is in trouble too

[Keith Antoine]

This from their latest news letter...........

FLASH: The Future of Mandrake Linux.

Today we are on the verge of releasing Mandrake Linux 8.2. This latest 
version of our flagship product introduces many new features such as 
an encrypted filesystem, automatic detection of "hot-plug" devices, 
refined & polished graphical user interfaces, and much more that will 
be detailed in the official announcement. Judging by the response of 
beta testers, we're certain that 8.2 will be a fantastic release which 
will be quickly adopted by Linux users everywhere.

Even though all of us here at MandrakeSoft are excited about the 
upcoming release, we've also been distracted by financial concerns. 
Despite continuous good reviews in the press; despite having millions 
of users throughout the world; despite producing an award-winning Linux 
distribution that is a solid competitor to both UNIX and Window$, the 
Mandrake Linux distribution's short-term future is in jeopardy due to a 
simple factor: money.

As a company, we make our revenue by selling packaged versions of the 
distribution and by delivering services such as consulting, training,
etc. -- but our development costs and community-based services are not
yet covered by income. It is estimated that we will "break even" by the
end of 2002, but it is unlikely that MandrakeSoft can remain unchanged
during these next few months without drastically cutting costs unless
additional revenue is generated quickly.

The issue that we are discussing concerns the short-term future only. 
Since mid-year of 2001, our service and product activities have 
increased dramatically -- enhanced by the growing confidence of several 
distinguished companies. Since MandrakeSoft's revenue continues to grow 
and the company remains on target to become profitable at the end of 
2002, it would be a real loss and a great disservice to the huge 
community of users for us to cut positions to meet short-term goals 
when the future looks so bright.

The company's long term prospect are very good, but we are still paying 
for the "sins" of the previous management. Even when the company 
becomes profitable, it is important that users have a loud voice to
remind management and investors that the "community" has been -- and
should always remain -- a crucial part of MandrakeSoft's success. As
we've said before, a company that is mostly controlled by business
people & investors would be drastically different than if controlled by
its users.
-- 
Keith Antoine (GANDALF) aka 'skippy'
18 Arkana St, The Gap, Queensland 4061 Australia PH:61733002161
Retired Geriatric, Sometime Electronics Engineer, Knowall, Brain in storage