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Open source startups: Don't try to be Red Hat

InfoWorld - Simon Phipps - VCs are realizing the next billion-dollar software company won't make money from software, but from what open source enables it to deliver

If you were a VC, you'd be looking for a way to turn your millions into billions. If you had only ever made money by betting on proprietary corporations, you would probably conclude that open source was a poor way to win big.

If, like Andreessen Horowitz VC and former XenSource CEO Peter Levine, your work on an open source platform had made you rich, you might conclude that open source had a role to play, but could never make you as rich as Oracle and probably not even as rich as Red Hat has become through its once-in-a-lifetime exploitation of the Linux and GNU commons. Indeed, that's the conclusion Levine reached in an article for TechCrunch this week.