eZ / About eZ / Blog / Scaling and Funding a Commercial Open Source Company Part 2 of 3

Scaling and Funding a Commercial Open Source Company Part 2 of 3

This is the second part in a 3 part series. I encourage you to read Part 1 of 3: From Direct to Partner from Services to Subscription

Part 2: What makes eZ, as a commercial open source Web CMs vendor a great investment?

Why does anybody want to invest any money into a software company that gives away their core software? 10 years ago there did not exist any proven business models for commercial open source companies. Now it does, we have ourselves proven it.

This business model, gives eZ an unique competitive advantage and it is also a scalable, recurring model making a good platform for a solid growth business.

Anyway what makes eZ a potential great investment?

  1. eZ is in a fast growing global market. WebCMS Market is a 1,3 billion USD market with 14% yearly growth (Gartner) and with a leading position within multichannel content management they see increased growth, especially in the mobile and tablet markets going forward.
  2. eZ has a proven technology with more than 250,000 installations in over 160 countries and a long list of top tier customer accounts around the globe.
  3. eZ has a scalable and recurring business model. By selling software subscriptions of eZ Publish Enterprise Edition through a partner channel, eZ has a model set to scale.
  4. eZ has proven its business model with consistent high growth in subscription sales. And eZ has delivered what promised.
  5. eZ has gained a leading market position in 3 dimensions:

a.  eZ Publish is the best Web Content Management System in the market for the Multi-Challenge; Multi-Channel (Mobile, Web, Print, IPad …), Multi-Media, Multi-Sites…Clients capitalize on their content

b. eZ is the leading Open Source Web Content Management provider for large and enterprise customers

c.  eZ is the global leading WCMS for Media and Publishing, open source or not, with customers as; Wall Street Journal, Financial Times, Condé Nast, Lagardere, Random House, Sanoma, Canal+…

6. Last but not least, all investments is about the people; eZ has a top tier team from which the investors believe in will continue to deliver. Including our Board and Management team, led by our CEO Gabriele Viebach.

So to sum up the story is not that different from any other business attracting investments; You need to have a market and prove that you have something to do there and when you do, make sure you have a business model that can scale and capitalize from this. eZ has proven itself to be a valid business to invest in, and Commercial open source has proven itself to be a valid business model for scalable growth.