SpringSource, the company behind the Spring Framework, recently announced that it has doubled revenue growth for the third consecutive year.
I would love to know how much of that revenue is coming from professional services vs. products vs. support. We all know that professional services revenue does not have the scale benefits or profit margins of product revenue. A reliance on professional services is, in my mind, a crutch to any open source company that wants to be in the business of selling products. The crutch is necessary when the vendor is starting out, but relying on it too much, or for too long, will impact the shift towards products. While doubling year-on-year revenue is spectacular, as an open source proponent, I want to see revenue from products based on open source.
In other news, Matt reports that Neelan Choksi has left his post as COO of SpringSource. Neelan is a class act and helped grow and mature SpringSource in his 2 years with the startup. I hear that Neelan’s (to be announced) replacement is pretty solid. Also, Neelan is staying on as a board member and advisor.
It seems that Neelan is going to do something (his LinkedIn profile lists his title as “TBD”) with Lexcycle. Interesting to see that Lexcycle isn’t an open source company.
In any case, kudos to SpringSource and best wishes to Neelan.