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Idea #9206: Canonical should leverage Ubuntu to become profitable

Written by jhoger the 29 May 08 at 01:39. Category: Marketing. Related project: Nothing/Others. Status: New
Rationale
I keep reading in the press that Canonical is not yet profitable. Yet Ubuntu has quickly become one of the trusted "brands" in the Linux community.

It is imperative that Canonical become profitable since it is the thought engine that drives Ubuntu beyond just being another Debian derivative.
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Solution #1: Big list of ideas
Written by jhoger the 29 May 08 at 01:39.
My idea is that Canonical should leverage their brand and become profitable using techniques that are not in conflict with the free software ideals.

a) Charge for support
b) Charge contracting/consulting fees for adaptation/customization
c) Advertising/marketing agreement fees for connecting downstream customers with upstream or 3rd party developers
d) Publish books
e) Get into the "trade show"/conference hosting business
f) Offer web hosting on Ubuntu servers
g) Offer paid-for certification on Ubuntu products
h) Sell Ubuntu foo-foo merchandise (hats, shirts, ...)
i) Sell Ubuntu branded computers (desktops, laptops, servers)... partner with an existing OEM to make these Ubuntu branded lines.

etc.

Probably Canonical needs to pursue a combination of these. Their long-term competitive advantage is their brand. If they guard it and build it up then they can sell all kinds of things with their name and logo on it.
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Solution #2: Support Ubuntu by collecting UbiPoints :)
Written by sinanaykut the 27 Jan 09 at 14:40.
My idea is, at the ubuntu bar, there may be a button or menu label that says "Support Ubuntu!". When the user runs it (if he/she wants of course), it should open a box that which has a title something like "UbiPoints". When it runs, it should show some ubuntu or linux ads or maybe Coca Cola (no kidding :)). Day by day, it collects ubipoints for supporting ubuntu. Then maybe the points will show up at the internet. Imagine "HI-SCORES".

I don't know, maybe this idea sucks, maybe it needs to improve or debate.


SAMPLE:
http://img220.imageshack.us/my.php?image=linuxubuntuthmsv3.jpg

Sorry for fuzzy english :)
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Solution #3: Have a "Donate To Ubuntu" Link on www.ubuntu.com
Written by rouge568 the 27 Jan 09 at 22:50.
Have it so a user can easily donate to Ubuntu through either Paypal or a Credit Card though a link on the front page.
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Solution #4: add adversiments on ubuntuforums
Written by TheLions the 28 Jan 09 at 00:24.
why not add some banners on the bottom or the top of the ubuntuforums which would generate money per view?
Since forums have a lot visitors it could be a new source of funds.
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Solution #5: Support ubuntu by word of mouth
Written by coder543 the 28 Jan 09 at 00:43.
Don't add annoying advertisements
Don't begrudge people into donating
_DON'T_ do "UbiPoints"

However, if we support ubuntu by telling others about it, then we will be able to help others rather than (mostly) hurt ourselves.
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Solution #6: Charge Software Makers for Distribution
Written by David.ZA the 13 Feb 09 at 12:15.
Ubuntu could be the delivery system for software that people would be willing to pay for.
E.g.:
In Synaptic: Install and Pay for commercial Software. Ubuntu could charge a little margin for this

Proviso:
The finances should be entirely transparent, and democratic efforts like brainstorm must be hold the 'final' vote.
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Solution #7: Subtle Services
Written by Kver the 14 Feb 09 at 00:58.
A: Offer services that both the user can benefit from, and make revenue. The best example if the firefox search bar, where the fox makes profit off of the search box. Ubuntu could make deals with companies such as Google to make money off of internet searches conducted with modified tools such beagle or tracker.

B: Solution #5, mixed with a steam-like service. Valves Steam software is a good example of online distribution and copyright management. Users could purchase software steam-style and download it onto several computers as needed. Unlike steam, however, we would only require users to be logged in for updates or downloads.

C: Create a "Funding" website for software projects. Projects or people hoping for funding could post requests for funding. Authors would post a goal, and explain what they plan to do if the goal is met. For example, if the Nautilus project needs $200 for authors to go to a programming conference (to implement, say, improved file previews), they could post a goal of $200, with enabling several types of specialized file previews if earned. Then bids could be placed to fund the project, and specify any requirements if the bid is accepted (Ie weekly progress reports).

D: Run a folding project. Allow users to download a program similar to Sonys Folding@home; The computing power could be (cheaply) sold to other non-profit organizations; they get high-quality low-budget computing power, the software gets funded.

E: Push boxed-copies of Ubuntu onto bigger retailers. Officially selling Ubuntu for $20-$60 in stores; Additionally, a year or two of bundled, professional support, and CDs / DVDs with extra repositories would help justify the cost cheaply - and benefit offline users. This could expose Ubuntu to the average user, and make massive profit. (I'm sure there's a competition law somewhere that could pave a modest amount of shelf-space away from Windows)
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Solution #8: make ability for companies to pay money for quick fixing for bug or new feature
Written by RomanIvanov the 14 Feb 09 at 21:22.
As in Mozilla project companies(just users) could ask for rapid fix/new feature from developers from Canonical or any freelancer.
Companies post problem and tell how much they could pay for this, any developer could implement this and get money for fix. Even Canonical could use it as outsourcing for minor features.

As result we will have more quick bug fixing, and company does not need to wait for ages for fix - it encourages developers.
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Solution #9: Sell official Ubuntu discs
Written by yman the 4 Apr 10 at 05:04.
For example: package Ubuntu with an official disc, a printed manual, included support, an Ubuntu One trial, and pre-installed full multimedia support from Fluendo for 125 USD.

Or some such deal. It should all come in a nice professional-looking package, and since the Ubuntu software isn't being charged for, the money will all be going for the extras, so pack them tight and give more bang for the buck compared to the competing products.
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Solution #10: Canonical should charge for specific updates
Written by Bayle the 12 May 10 at 18:25.
Ubuntu and all the software should remain open and free as in “free as a beer” being able to download from anywhere and anytime.A system that's not being updated should be fully functional with no strings attached.
Lets extend Ubuntu from just being a desktop system, to a time saving service providing the user with a vast software portfolio based on a secure,convenient and stable platform.
In order doing so, charge users a small amount (based on their subscription) for updates on their installed system, by requiring them to login as they would into their email account.
The only difference over the current situation are the (crucial) updates (tested and maintained by Canonical) which could be performed trough the access of cloud/email service (or any other feasible method). All other not officially supported repositories (multiverse/universe/restricted or any other manually added) should not be affected.Again every code change Canonical provides will be still available somewhere on the net,just not trough synaptic's main repos.Users can add stuff manually if they prefer not to pay.In essence, Canonical would provide the assurance that updates or software trough their servers are mature,clean,tested and a point-click matter.

Very few if at all would circumvent this process by re-downloading the updated Distro, wipe the entire hard-disk, doing a reinstall, setting up preferences, possibly losing some data in order to keep the system up to date, its just not worth the time.
A good approach would be to offer Ubuntu bundled with an email/cloud service so the potential customer would immediately get the sense he's receiving an added value over the traditional operating system.



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Meryl wrote on the 29 May 08 at 06:27
> "It is imperative that Canonical become profitable "

Why is it imperative?

I for one would be very disappointed if the Ubuntu ethic altered and I think a marketing/profit model is not what the Ubuntu community is about, and it would be a complete degradation of our FOSS ethic. Profits aren't everything. From my (limited) understanding, one of the reasons that Canonical sponsors the talented pool of intelligent, innovative and dedicated members of the Ubuntu Free Software community is because they recognise the evils of 'democratic free market trade' (aka clean shaven fascism in a suit). The Ubuntu community's skill base of translators, coders, documentors etc.. coupled with the Shuttleworth Foundation, help millions of people who are digitally divided from the rest of us with free distributions, computer access, and even setting up telcos. And the Ubuntu community participate because what really, really matters is people and community... That's what I love about Ubuntu and if the focus were to change I think it would be a very sad day for the entire FOSS community.

Ssdg wrote on the 29 May 08 at 10:52
Charge for support=> done (professionnal support I mean, communauty support will never get sold because new wikis+forums will be created/used)
c) I heard of agreements for proprietary software in the canonical repository, so done
d) I don't know if canonical gets money on those but You can find books about ubuntu in "big" library in france, so done
g)done : http://www.ubuntu.com/training/certificationcourses
h) did you get even once on ubuntu.com there is this link https://shop.canonical.com/
i) and what about dell.com? look for ubuntu, it's hidden in the french version and I can't get the US one.

Most of this is done already and you can trust mark shuttleworth to take care of the "money" part.

gazilla wrote on the 29 May 08 at 11:20
I think a little more research might have been called for here. Ssdg is quite correct, and where its not "done" see Meryl's comment.

jhoger wrote on the 29 May 08 at 14:37
Ssdg...

My idea is to become profitable now rather than later by some subset or all of these revenue streams. That some of these revenue streams are being tapped does not negate the idea.

FWIW,
c) is not done, and where did I suggest proprietary software in the repository... I didn't. c is about helping to marketing consulting/contracting services by upstream providers not proprietary software. Proprietary software would not be in line with Free Software principles
d) not done. My point is books published BY Ubuntu with their brand where they get revenue. Similar to MS Press
g) I agree there are certification courses. Are they being pushed? Looks like nothing in the US...
h) Merchandise... yes you can poke around on the site and find some stuff.
i) A Dell computer running Ubuntu is noubuntut an Ubuntu branded computer. It should have an Ubuntu button on the outside, the customer should think they are buying it from Ubuntu.

I am sure Mark Shuttleworth is a great businessman.

But the fact remains that Canonical is unprofitable.

jhoger wrote on the 29 May 08 at 14:43
Meryl... I don't believe the Ubuntu community by and large is anti profit or anti marketing or anti commercialism. I believe there is an element of that in the open source world generally.

But Ubuntu is a product of a commercial, for-profit company. That means that Canonical needs to turn a profit at some point. In the US for example, you have to turn a profit to remain a business in the eyes of the Internal Revenue Service.

Marketing is simply how a business gets its products known and communicates with potential customers.

If Ubuntu remains unprofitable it will lose momentum and eventually run out of money. Being profitable on the other hand would permit massive improvements to Ubuntu such as many of the ideas on BS recommend.

jhoger wrote on the 29 May 08 at 14:47
BTW Meryl, I didn't say anything about modifying the "Ubuntu ethic" which I guess you mean their Philosophy.

Please feel free to point out where any of what I said is in conflict with their Philosophy.

Actually I think this list is in line with the philosophy since it pushes services and products around the OS rather than, say, license fees for the OS or any software products.

Meryl wrote on the 30 May 08 at 06:56
yes jhoger by 'ethic' I did mean 'philosophy', the FOSS philosophy specifically: and the reason it is important to ensure that nothing erodes or dilutes that philosophy is so the end-user/individual's needs are always esteemed above and beyond corporate/commercial needs. Therein lies my concerns.

>"I believe there is an element of that in the open source world generally."
Me too, I hope it stays that way and its something we need to actively protect. A marketing/profit model needs great care and consideration especially regarding long term effects for the end-user. Also flow-on effects and other repercussions need to be carefully weighed because once we start down that path it could create a cascade of events that could make us no different to another big commercial oligopoly.

> In the US for example, you have to turn a profit to remain a business in the eyes of the Internal Revenue Service.

OK so the IRS's ideology supports the US's capitalist economy: that makes sense. But there are many other equally valid economic models throughout the world and to my mind profits are not an indicator of success (BTW I run my own business). So I am not completely anti profit, anti marketing or anti commercialism, but I do see many perversions and injustices proliferating some societies today. Some governments venerate corporations as all-powerful demagogues, these corporations have massive lobbying powers, can get laws altered to their favour and they are granted complete impunity with their methods in pursuit of a profit... to the point where they are permitted to trample all over and even destroy the little people (some shrink-wrap EULA's are so ludicrous they'd defy anyone's logic). Again, profits are not an indicator of success.

Don't get me wrong, I think we do need to openly discuss ideas like you have proposed, its good because when they are added to the mix we can see all the possibilities and directions that could be worth considering and it helps in clarifying the Ubuntu community's vision by consensus.

I like the idea of Ubuntu getting the profits from the Ubuntu book, its going back into the community it came from.
I too would like the whole world to know about Ubuntu, so everyone has the freedom to choose whatever OS they want but we have to be very, very careful how we do it.

jhoger wrote on the 31 May 08 at 02:47
Meryl, in fact this idea originated out of a discussion of Auzy's idea that Canonical should open source Landscape (which is proprietary, closed source, distributed by Canonical) or adjust the Ubuntu philosophy.

My opinion was that Canonical should keep their philosophy intact and stop promoting a proprietary software product. These suggestions were my suggested alternatives that would NOT violate the Ubuntu philosophy.

I'm surprised that this idea is controversial (evidence by the see-saw voting which is currently at 0). Canonical is a for-profit company, not a non-profit. If they are to achieve their mission, they need to be profitable, or they will eventually cease to exist.

They need to survive beyond Shuttleworth's seed capital or there will be no Ubuntu. Ubuntu doesn't have a "head" without Canonical. It's not like Debian where they have a governance system.

Meryl wrote on the 31 May 08 at 10:59
... and we are waiting for Launchpad to be open too.

>"they need to be profitable, or they will eventually cease to exist."
I'm still struggling with this statement because I suspect that you might be looking at Canonical from a US IRS law perspective (you mentioned the IRS in a previous post). The US's IRS is not a global tax policy (yet). Therefore I can't grasp how a foreign country's tax law can apply to Canonical, and bear in mind Manx tax and company law may not function with the same obeisance to the supreme god of profitability that other countries do. For example; in my country, companies can operate year after year at 'break even' and may experience the odd loss and yet still happily "exist" because 1) they provide a valuable service, 2) shareholder(s) agree that profits are not an indicator of success and 3) shareholder(s) choose(s) not to be greedy.

Also I reckon SABDFL (and Canonical) would have a good idea what they "need" to focus on to continue "existing" with regard to Manx law.

A very good point jhoger: Where would Ubuntu be without SABDFL?
I hope it is a good many decades before we find out that Canonical has to appoint a worthy successor, and when that time comes, I hope the successor will have the same clear vision, philosophy and philanthropic ideals.

Vahan Harutyunyan (Brainstorm moderator) wrote on the 8 Dec 10 at 11:34
Solution #3:

http://www.ubuntu.com/community/get-involved/donate

Darwin Survivor (Brainstorm moderator) wrote on the 2 Nov 12 at 22:09
This idea was flagged "implemented". Since there is no indication of this having happened, we are disregarding the flag. If it is implemented, please explain in a comment, then re-flag the idea.


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