Open source is where the action is in 2007
The pace of change in the open source software business is likely to accelerate in 2007 as developers climb up the software stack from the operating system and databases to applications.
Proposals to invest in open source-based software companies increased by a factor of two or three in 2006 over 2005 at Index Ventures, said Bernard Dallé, general partner at the venture capital firm.
Index Ventures invested about $10 million in open source companies in 2006. These include investments in MySQL, a provider of database management software, and Pentaho, which delivers business intelligence software.
For a variety of reasons, software companies are increasingly looking to add value on top of base open-source platforms. The main Linux distributor, Red Hat, is a case in point.
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