Energy for the entrepreneur!

Since April 2006, date in which Openbravo published its source code, our team has traveled to the US in more than 5 different occasions. The last one was some days ago when we participated for our second consecutive year in Linux World San Francisco and won an award.

This short post is to share with you what I love from the US and more specifically from Silicon Valley. So here I go with the list:

• I love the entrepreneurial culture and how entrepreneurs are recognized by society. Success is obviously positively recognized and failure is not perceived as disaster in the professional careers of those starting up new businesses
  
• I love the large concentration of entrepreneurs that exists and specially the large pool of skilled software professionals ready to jump ships to new start-ups. Synergies between the corporate world and the university and research community are much more efficient
• I love the attitude that successful entrepreneurs have to help others, their practical advise that often give you to help you grow your business into a market leader and overall the rhythm of conversations when you talk business with them
  
• I love organizations that are ready to work with start-up companies both providing services (adapting their offering) and becoming your clients (being more exposed to start-up risks)
• I love the large number of VCs ready to invest in new breakthrough ideas taking an active role in shaping them.

Conclusion: If you are an entrepreneur go charge your batteries from time to time with energy shots from the Valley. It is worthwhile!

Openbravo on TV

Yes it happened Tuesday last week. The national TV of Spain broadcasted at 20:00 pm -prime time here- an interview with me and Ismael Ciordia our CTO and one of the three founders. The interview was part of a series of shows that talk about successful entrepreneurial ventures in Spain sponsored by Banesto and ICEX .
It is a short interview but it shows several things that I like:

1. It once again demonstrates how the dissemination works for an open source venture. Openbravo was picked because it illustrates the counterintuitive argument that giving away can result in profitable growth...and we obviously didn’t have to pay a single penny for the spot ;-). The full case is here.
   
2. We are presented as a success story in the country we started operations so I am happy that is not only foreign media such as RedHerring, SourceForge and international media that recognise our progress.
3. The case is focused on an area which in my opinion provides good lessons to many entrepreneurs: the important decisions that the founders of the company had to make to grow the company, including the recruiting a new external CEO (that is me) and other key executives. In my believe this is something that many founders hesitate to do, and results in a serious hindering of the growth potential of their projects. I must say that our founders acted wisely there (honestly, I really think so)
4. In the video you could see that there is good professional and at the same time friendly atmosphere among the team, which is a key requirement for a winning company ...
   
5. ... and last but not least, very good shots of our new release 2.3 which is about to be presented in LinuxWorld San Francisco. Some of these shots show the ERP running in Chinese thanks to our Chinese community which has done the localization.
   

For the ones that don’t speak Spanish, we’ll figure out how we can translate the video.

Openbravo launches “Pioneers” an innovative Partner Acquisition Campaign

One of the things that I really love about Openbravo is the team’s determination to redefine the rules on how ERP software is designed, developed and marketed in all areas. Over the next few days, we’ll be talking about the power of our next release (you can try our BETA version by downloading it here) and how we plan to continue innovating our Product area. In this post, I want to briefly talk about another important innovation that was introduced two weeks ago: the "Pioneers" campaign targeting potential partners who want to be the first to introduce Openbravo in their country.

Being the first Partner in a country not only means a clear first mover advantage, but also taking the responsibility to localize Openbravo to the specific territory. “Pioneers” is a campaign which targets the acquisition of a qualified partner in a country so that it can thus help serve the objectives of all of us: Community, Partners, and Openbravo as a company. So what do each of these parties gain?

• The Community gains a free published localization pack (developed by the Partner with Openbravo’s professional support).
• The Partner gains a once-in-a lifetime opportunity, as the first and only partner to get this offer, to benefit from all professional services required to build up its Openbravo practice. In addition, they naturally get a first mover business advantage plus the community recognition for being the first company to develop and publish the localization
• Openbravo as a company gains a new qualified partner and takes a giant step toward opening the future of ERPs in each country.

I started this post elevating our team’s determination to redefine the rules of this business. These are rules that are redefined thanks to all those who form the broad Openbravo community: people, companies, partners, and obviously in this case, our team in Sales.

Please keep sending your feedback, regardless of your relationship with us as a company. We’ll make sure that we channel it adequately to continue with the innovation wheel. If you want to become a Pioneering Partner please submit your application here. Thank you all.

3 success factors and 3 things to avoid when building an open source business

On June 7th Stephen Walli invited me through his blog to list three success factors and three things to avoid when building businesses using open source software. This is coming from a challenge initiated by Mikko Puhakka that tagged three people to jump in (one of them was Stephen) and there is already a good number of opinions being posted through this interesting pyramid (e.g, Marten Mickos, Javier Soltero, …). So here I go:

My three success factors for open source projects are listed as follows:

1. A great product at least equivalent to successful proprietary competition

• Very obvious point but a must that becomes a "killer" aspect when combined with open source. A great product generates positive word of mouth from its users which is directly amplified through the natural dissemination mechanisms of open source.

2. Active and relevant community

• Mandatory to properly leverage the two most critical aspects that open source enables from a business standpoint of view:
• Facilitate the development of quality software
• Facilitate the Sales & Distribution of software

3. Solid business plan executed by a great team of professionals

• The business plan of any successful open source vendor should be build leveraging a mix of low touch-high velocity products & services sold arround the core open source product. An excellent team of professionals is the key ingredient to define, build and maintain the right business.

My three things to avoid:

1. Unbalanced leadership

• A great product is developed by excellent product engineers. A great business is developed by a team of professionals with the right balance between technology and business skills. Typical business issues that should be well thought are: h2 build a leading brand in a world full of proprietary software?, h2 accelerate community growth and foster dissemination?, h2 acquire, develop and maintain best in class partners when starting up?, ...

2. Mismanagement of company growth

• Open source by definition is international as of day one since software is available in the internet. If things go well … demand is much larger than the capacity of the start-ups behind the product to serve it. A well thought offering helps you grow your company without compromising quality service levels.

3. Unclear/ unfair policies that confuse your community on what is for free and what is offered at a fee

• I love Marten Mickos presentation @ OSBC this year which said “Success in open source requires you to serve: 1) Those who spend time to save money and 2) Those who spend money to save time”. This is only achieved by being very clear, fair and open with your company policies.
  

People I have tagged to continue the challenge (I exclude the ones that have already been tagged by others such as Marten, Matt, Javier,…):

• Fabrizio Capobianco (Funambol's CEO, open source guru, great entrepreneur and another European in the Valley)
  
• Peter Fenton (One of the most experience Venture Capitalists in the space from Benchmark Capital, who has a very distinct opinion about the real drivers behind Open Source businesses)
• And last but not least … Josep Mitjà (Openbravo’s COO and Open Solutions Alliance Board member … sorry Josep but lately you are not posting messages in your blog and the world needs food for thought!)

A great first year!

Dear friends,
This last year at Openbravo has been an extremely exciting and at the same time a very encouraging experience.
It seems like only yesterday that we were releasing our code on SourceForge and hoping that there would be a receptive audience of people interested in helping us to build the world’s best open source ERP solution. Just one year later, the sheer volume of interest, support and success we’ve enjoyed has been amazing.
After publishing our source code in April 2006, Openbravo rapidly became one of the key open source ERP reference solutions, with consistent top rankings in every major metric of activity compared to all other software projects published on SourceForge. Since Openbravo passed the 100,000 downloads mark on New Year’s Eve 2006, download rates have continued to grow. We are now opening our second office, in Barcelona and have continued to expand our team with excellent professionals experienced in handling the growing international demand and opportunities that exist for Openbravo.
In September 2006 we officially launched our Partner Support Unit by unveiling our Friendly Partner Program. Distinguishing Openbravo from other start-ups in the space, this program allowed us to build a network of 20 partners with whom we have been expanding our services while fine tuning support processes and acquiring further partners to help scale up our offering. The confidence that Openbravo gained through working with our first partners and the constant help and feedback we received was crucial in guiding the design of our latest program and we very much appreciate every effort and continued support.
In April 2007, having successfully closed our initial friendly partner phase, we launched an unprecedented, breakthrough Partner Program. This new program, which I invite you all to review, incorporates some extremely innovative services that contribute in creating a secure and powerful network of international partners. Today, thanks to this program, we are able to attract best-in-class partners from all over the world. They rely on our expertise to extend our successes to a large array of end customers of all different sizes and from a variety of sectors.
These successes have not gone unnoticed. We’ve been discussed in magazines such as Fortune, CIO Magazine, and Enterprise Open Source Magazine. We were also invited to join the Open Solutions Alliance (OSA) as a founding member alongside companies we very much respect, including JasperSoft, CentricCRM, Talend, SpikeSource and Hyperic. We are extremely positive about the work being developed there to foster interoperability among different open solutions, and proud that our COO Josep Mitjà has now been invited to act as OSA Board Member. Other leading open source gurus and companies have also helped us in our plans, and it would be unfair not to mention the help we have received from them (you know who you are ;-) ). Thank you so much!
We’ve been fortunate enough to work with some fantastic developers and be assisted by a wonderful group of employees and friends. The success of the Openbravo project on SourceForge has been built upon through the creation of the Openbravo Wiki, while the demand to use and develop Openbravo worldwide has led to localisation projects for over 20 different countries. As requests have come in for features like PostgreSQL support and a web services interface, the incredible talents of the developers and supporters of Openbravo have continued to meet and exceed our goals.
While we are proud of our successes, we’re even more excited about the future. Forthcoming developments including a thrilling new web interface, revised focused ERP functionalities and interfaces to the other leading open source projects are being created right now and will be released over the next few months. In addition we are working on the next generation platform architecture of Openbravo, code-named Openbravo Green. You can see our progress and goals for Openbravo Green on our publicly-available roadmap. Making our roadmap public is just one of the ways that we aim to show how transparent and shared our vision is. We truly believe in open source development, and that a web-based open source ERP solution can not only match the proprietary solutions available, but surpass them and create a solution that redefines ERP software in the process. The only way to make our goals happen is through the continued hard work of many, many people. For those who have helped us with that hard work and invested their trust, time and effort in us, please accept our sincerest thanks.
For those of you now joining our broad community, we wish you a warm welcome and thank you for joining and opening ERP’s future!

The boring bits are a SAP's strength

Last week, while still in Cannes, I read an article about SAP’s point of view on the impact of open source in ERPs. Henning Kagermann, SAP’s current CEO, declared in Computer Business Review that “Open Source is an option for operating systems and databases but not at the business application level”. This point of view does not surprise me since it is not a new statement coming from a top software executive. In the past, important executives such as Bill Gates and Steve Ballmer also disregarded the Open Source opportunity/ threat in the operating system world. But … you know … what really strikes me is the main rationale that Henning was using to support his point of view. He argumented that Open Source successful projects are those where developers like to work for “fun” and literally said “I have never seen anyone who likes doing that (referring to altering applications to cater for legal or regulatory changes such as Sarbanes-Oxley or Basel II). That is not fun. There is no choice. The boring bits are a strength of SAP” .
I am really astonished … Can we imply that SAP’s strengths against open source competitors are only built upon boring pieces?. Does Henning see open source competitors failing on their purpose because there is no fun on building ERPs?. If that was the name of the game … and you are working at SAP … please tell your boss that our growing community encompassing now more than 50 employees and more than hundreds of individuals working for IT companies around the world is really having “fun”!!!!. But please tell him that we are not having fun for the sake of fun. And here it comes the true reason why open source will make it in the world of ERPs: Fun for the sake of building Openbravo, the leading open source ERP Company in the space. At the end experience tells us that everything that can be built on open source, is finally built on open source (see other similar projects that are building business applications successfully with open source @ the Open Solutions Alliance )".

Anyway … I am convinced that we will see Henning in the future adapting its pitch as many others (read Gates and Ballmer) have done it. Don’t you think?

Red Herring Top 100 Europe

Next Sunday I will be travelling to France on behalf of Openbravo to accept the “Top 100” award, presented by Red Herring. I am extremely satisfied with the award since it not only recognizes the work and results achieved so far; but also it points out to what I truly believe is one of the most differential elements that we have as a Company: the capacity to innovate! Opening ERP’s future and becoming the leading ERP in the space is a huge project requiring innovation toward building a solid and thorough business approach. And guess what … Openbravo guarantees this continuous innovation with one of the most professional teams that I have ever had. Allow me to celebrate with a big open applause or better yet, a big open bravo for our team. Guys … let’s make it happen!!!