Podcasts Technology Software Defined Talk Episode 145: Redis be like I just stepped into a big pile of...SaaSy!

Episode 145: Redis be like I just stepped into a big pile of...SaaSy!

Published: Aug. 31, 2018, 1 p.m.

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This week, we discuss Redis\u2019 license changing move, open source business models in general (of course), SUSE revenue, and some VMworld selections.

\n\nRelevant to your interests\n\n\n\nVMworld NA 2018\n\n\n\nRedis stinkup - the mysteries of making money by actually selling something\n\n
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  • Cot\xe9: now, what\u2019s the deal here? They closed source some stuff that maybe others had contributed to, taking advantage of good will, and/or they\u2019re just now charging for what used to be free? (Are there other open source scandal scenarios?)
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  • Joab and Lawrence at The New Stack: \u201cWhile the core of Redis itself remains under the permissive BSD license, the company has reworded the licensing for some of its add-on modules, in effect blocking their use by third parties offering commercial Redis-based services \u2014 most notably cloud providers. Redis Labs was able to make this change because it retains the copyright to the open source code.\u201d
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  • Commons Clause, Redis Labs.
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  • Adam Jacob Twitter thread on commons clause.
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\n\nSUSE Revenue Watch\n\n

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  • Somehow, this has become a bit in the show. Blame Cot\xe9.
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  • Something like ~$360m based on trailing 6 months runrat\u2019ed to 12 trailing. Also, likely non-GAAP reporting (not clear if it\u2019s ACV vs. TCV), but whatever.
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  • Grind and stack: \u201cEBITDA for that period was $56 million, nearly 23 percent year-over-year growth.\u201d So: ~$112m profit, ~31% margins.
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  • That\u2019s the kind of stable (they claim to run 70% of SAP apps), growing cash-throw-off that should make PE people drool on their Patagonia puffy vests: \u201cFollowing last week's shareholder approval of Micro Focus' proposed sale of SUSE to EQT Partners for $2.535 billion, the transaction is expected to complete in the first quarter of calendar 2019, subject to customary regulatory approvals.\u201d
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  • If my math is right (it\u2019s established that I don\u2019t know how numbers work), clawing in all profits would pay that $2.5bn off by 2026: 8 or 10 years of holding growth and profit %. Of course, you\u2019d sell it off before that.
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