A Watershed Year

Jan 20, 2009

It's Channel Time For Linux - Open-source app developers look to partners to help take Linux mainstream

Prophet Network Integration (PNI), a Phoenix-based solution provider that has partnered with mainstays Cisco Systems (NSDQ:CSCO), Hewlett-Packard (NYSE:HPQ) and Microsoft (NSDQ:MSFT), is one of the partners expecting big things from the new Linux channel programs this year. PNI has been selling Digium's Asterisk open-source PBX without the benefit of a channel program for about a year and half and has built a $500,000 business around the product. But with the scalable service, support and sales boost provided by the new channel program, PNI expects to double its Digium solution business to $1 million this year. And it expects to double it again to hit $2 million in 2008.

The open-source channel revolution is changing the financial character of PNI. Two years from now, the company expects one-third of its business to be open-source solutions. "That's not even being extremely ambitious," said Art Tarsha, technical director at PNI. "Open source is completely unstoppable."

Solution providers say this year is a watershed one for Linux application vendors now moving beyond viral downloads aimed at the technical elite to a full-fledged sales channel chartered with driving mainstream adoption in businesses of all sizes. That involves new products, too. Huntsville, Ala.-based Digium, for example, is bringing to market a hardware appliance aimed at small and midsize businesses to move the product from what Digium Asterisk open-source PBX inventor Mark Spencer calls the early adopter phase to the early majority. That means a full-fledged reseller effort with its first-ever channel program, 10 channel reps and a dedicated technical support hot line for VARs.

"It's really important for open-source vendors to introduce these programs," Tarsha said. "Instead of staying in the shadows with leading adopters, they are moving these great products into small and [midsize] businesses by providing competitive pricing and support. Now I have a baseline that I can work off to build implementations on. And with a formal program, my profits are obviously going to increase significantly."