Helix Code: Beyond Project to Product
What the Guys Are Up To

Dennis E. Powell
Monday, September 11, 2000 05:00:00 AM
One of them--Miguel--is already
instantly identifiable in the Linux community by his first name
alone. The other--Nat--is Nat Friedman, fast achieving that
status. They're among the Linux rock stars, and together they've
formed Helix Code, a company that hopes to make them rich exploiting free software, specifically Gnome.
They recently talked with Linux Planet
about what they're doing, what they hope to achieve, the future of
Gnome, the prospects for the Gnome office suite, the Gnome
Foundation, and the possibility of automatic acquisition of tickets
to Dave Matthews Band concerts.
Like many in the community, they seem
to be in perpetual overdrive. And like many, they have a single,
passionate purpose. Whether their enthusiasm as Linux programmers
translates to success as entrepreneurs is still of course, unknown,
but they're giving it their best shot.
Making Money from Free Software
One of the questions that has puzzled
many people, including Wall Street, is how anyone plans to generate
revenue through the distribution of free software. This is where
Nat's vision comes into play.
"This isn't just about free
software," he says. "It's about the Internet and
communications. Certain types of businesses revolved around
communicating data, for instance selling music, selling software,
weather services, things like this. Now that we have this
communications medium which is becoming fairly ubiquitous, and which
allows you to transfer information from one place to another very
quickly and at relatively low cost, things are changing--certain
businesses are just changing. So people have to come up with new ways
of making money. Certain industries will die, and certain companies
will not be able to keep up and will also die as a result.
"Once the Internet became
pervasive, open source started to happen, and collaborative efforts,
too."
He cites as an example the original
compilation of the Oxford English Dictionary.
"It took 70 years to produce the
first edition of the OED, and without the postal system it would not
have been possible. So now you have this new communications medium,
which is the Internet and which is fast. And which also has the
benefit that when I send you a piece of data, I keep that piece of
data myself. Suddenly you have zero cost transmission of information
and zero loss to yourself when you transmit the information. This
allows things like open source and collaboration to happen. So,
suddenly, how can you charge for information, you ask yourself,
especially information which you want to be ubiquitous, like
software? Software has to be fairly ubiquitous for it to succeeed in
certain cases. If it's a word processor or something like that, you
want ubiquity for two reasons: one is file formats, though with open
file formats you don't need the same piece of software, and the other
is user interface--it should be the same. That's mindshare. They
know how to use Microsoft Word. They don't know how to use Word
Perfect, necessarily. So suddenly you can't charge for software."
Actually, there are a number of
companies that have done quite nicely and are doing quite nicely by
charging for software. Microsoft comes to mind. But while
Internet time is faster than world time, business time requires some
anticipation of the future, no?
"So this isn't about coming up
with a creative new business model for the heck of it. It's about the
fact that Microsoft's business model is obsolete. It will be
superannuated entirely by the existence of the Internet and the
possibility of transmitting information. The proprietary business
model for selling software just isn't going to hold up anymore. So,
how do you make money?"
Next: The Helix Gnome Online Service »