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Linux Software

Bonus Interview: VA Linux CEO Larry Augustin 128

Posted by Roblimo from the from-the-top-of-the-Linux-heap dept.
We all heard about the extraordinarily successful VA Linux Systems IPO. And, of course, there was an SEC-mandated "quiet period" after that IPO during which VA executives and employees could hardly open their mouths. That quiet period is over. This is one of the first "post-IPO" interviews anywhere with CEO Larry M. Augustin and Linux Evangelist (his official title) Chris DiBona. Ask away!
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Bonus Interview: VA Linux CEO Larry Augustin More

Bonus Interview: VA Linux CEO Larry Augustin

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  • Retail Distro (Score:1)

    by Anonymous Coward
    When will we see VA Linux boxes in retail outlets like CompUSA, Circuit City, Kmart, etc? Not that I buy from these places, but middle America looks on them as Tech Heaven.

    Or something like that.

    Besides, it'd be neat to be able to walk in and look over a system before going home to order it online. : )

  • Total solutions? (Score:1)

    by Anonymous Coward
    I'm in the process of building some internet server clusters, and already have 5 VALinux FullOnRAS2x2 machines, and they seem pretty nice. In building a cluster, as you probably know, you need both nodes and directors. Since the cluster will be colocated, rack space is a major consideration for me. I want to put in some small directors and firewalls and things like that, for which a 2U P3-450 is major overkill. I find myself seriously considering Netwinders, not because of cost, but because of size.

    Does VA intend to become enough of a full-solutions provider to offer people like me a tiny, low-horsepower machine to go along with your larger machines? I'd be happy even using a 486 for some of this stuff, so long as it was 1U! (Penguin offers a celeron-based 1U that I'm considering, but they're Penguin. Ick.)

    Right now your product line seems extremely limited, in that you don't offer low-end servers, you're holding back on offering Laptops, etc.
  • At my job I was asked to do a Linux vs. AIX running Websphere and Apache evaluation. When I was asked about hardware recommendations I said we should probably use a company that is part of the 'Linux community', one like VA Linux Systems. The execs said, 'Who? No, we want to use someone like Dell, IBM or Compaq. We want to leverage the economies of scale...Yadda, yadda, yadd....' What, if anything, are you doing to get over that type of reaction?
  • As another surprised participant in the friends and family program, I am seeing the IPO and stock issues in a new light. I still hold my 140 shares since I think part of investing is choosing companies that are worth supporting. But, I see how many people are focusing on the dollar signs.

    I am also interested in how VA will weigh projects. How will VA avoid the traps that come along with worrying about the bottom line?

    I did not see an investor relations link at the VA homepage like the one Redhat has. I hope this means VA will continue to support the community instead of chasing investor dollars ;-)

  • Why not? The strength of Open Source comes from it's distributed and inclusive nature. VA could pioneer a new approach.
  • ... and why... :-)
  • What do you offer Linux users who do not use VALinux systems?

    Will you pressure more hardware vendors for drivers or source?

    How many assests will you put towards software development?

    Hey, buddy, could you spare a mil?
  • It seems to me that a while back you sold notebooks with Linux pre-installed. Now I see no mention of that anymore by the company. Do you plan to enter back into the notebook market, or are you focusing on the desktop/server end?
  • IIRC, when Intel invested in VA, VA signed a deal saying they would work exclusively with the x86 arch.
  • I saw this interview too. Although he praised Linux for coming a long way in the desktop arena, I got the feeling he was saying that the public won't WANT Linux for their desktop. So far, this appears to be largely true.
  • Since you are set to compete against companies like DELL, IBM, and COMPAQ, what are your plans for managing your devices in the enterprise? Especially, what is VALinux' plans regarding industry standards like SNMP? And what about new proposed standards like CIMOM, and WBEM? Or are you going against the industry by supporting Open Source alternatives like Big Brother?
  • A woodchuck would chuck as much wood as he could chuck if a woodchuck could chuck wood.

    Although a /. poll might be useful. :)
  • 2nd phrase: Nothin' but Linux- no "we're riding the linux bandwagon"
    :)
  • Do you see the sell-the-tech support model as being the ultimately successful one in the Linux (heck, OS in general) marketplace? Will computer and software vendors have to find new value-adds? (bundled, closed-source software (games?)) to tag on?
  • I was planning to ask the same question. Moderators take note....
    --
    "But, Mulder, the new millennium doesn't begin until January 2001."
  • yeah, but anybody the size of dell, compaq, or IBM can be a "total solution provider". As for the previous reply to this, businesses don't care about who's more committed to the "cause of Linux"...they just want the best product at the lowest price.
  • My personal experience is that Intel-PC type hardware, even under Linux, is very limited. Large systems, in terms of band per buck spent, require bigger iron. Have you ever thought about using a different architecture than the commodity Intel/AMD, such as the Compaq Alpha?
  • There was no "acquiring" of SourceForge. We built SourceForge built on what we felt was a "missing element" within the community. We came to the conclusion that if we could reduce the number of obstacles in front of an Open Source Developer and provide him or her a place to work on that project without those obstacles then the community would see a greater range of open source applications being developed at an accelerated pace. That would only benefit the community.
  • I thought the second sillicon valley was Boston? That's what the jargon file would make one believe. :)

    -Chris
  • I've recently ordered a Linux box from VA and, after some delay, it arrived at the beginning of the week. Or at least the box did. The monitor, however, is nowhere to be seen. Is this just a mistake, or does VA believe 'real coders use teletype'?
    :-)

    ps. If the latter is the case, can I have a teletype please?
  • I was under the impression that SourceForge was it's own entity, without ties to VA Linux, previous to VA providing money and hardware for SourceForge. My Bad.

    However, since VA's major (only?) business is selling preconfigured linux boxen, funding high-level s/w projects seems a bit odd. Now, if they were specifically targetting things like drivers for winmodems, that would make a bit more sense.

    Don't get me wrong, I'm all for SourceForge getting VA's backing; As you say, it's a benefit to the OSS community. I'm merely curious as to how/why VA Linux chose to back SourceForge over something else that might be more closely tied to their business.

    OTOH, if the answer is strictly "Well, we wanted to help out. That's all," even better :)
  • I commend VA Linux Systems for supporting SourceForge; It's a great asset to the community.

    However, since VA Linux seems to be mostly about hardware rather than software, supporting a software repository seems like a curious move. Was there a business rational behind "acquiring" SourceForge, or was did this happen just because it seemed like a cool thing to do?
  • I heard that you know/knew the founders of Yahoo! Have you ever tried to sell them computers?
  • One Phrase -
    Total Solution Provider....
  • i THINK DOWN NEEDS TO BE THE TREND HERE.
  • Thats great..especially since you guys are one of my only two backups of my code + website. Since i dont have a machine at home (and cant afford to run one), im pretty screwed if the websites go under (altho i occasionally burn a cdrom when i get access to a reader...which should help). One of the reasons a trust fund would help is that it would pay the bills for running the hardware indefinitely..i.e. off the interest earned, incase VA goes under. M-Net has been surviving on such a fund (total outlay to keep stuff running is around $800/month for m-net (couple of BSD boxes + 1 T/1 or something slower..which is prolly enough to tide over any bad periods)).
  • Could we hold VA shareholder meetings on Slashdot? :-)

    Seriously, most of the shareholders who care about open source have rather small amounts of stock individually, but collectively they could be a sizable voting bloc, perhaps large enough to keep the more, um, predatory stockholders at bay. I doubt that ordinary proxy voting will work to keep the bloc together, since many of the small investors will never turn in their proxy ballots. At the risk of using an overused word, is there any way to innovate in this area, or are we locked in to tradition?

  • Sorry...I can't resist.


    *ZOT*


    You owe the Oracle a Tux plush toy.
    --

  • If you read LNUX's prospectus, then you will notice that their goal is to become the premier provider of integrated Linux-based SOLUTIONS. This implies that they have aspirations far beyond being a box provider. In this context, SourceForge makes sense. This will allow LNUX to maintain its intimacy with the Linux community and future Linux development. Their success will depend greatly on the SourceForge platform attaining preeminent status in the OpenSource development community.
  • Because it will allow LNUX to remain very close to the Linux development community -- which is essential to the biz plan (as enumerated in their prospectus) of being a leading provider of linux based solutions . From that viewpoint, the benefits are obvious.
    JWK
  • VA's got a bloody ludicrous market cap. VA's got wicked competition from Dell, Compaq, IBM, and in fact just about everybody. (It's hard to say who exactly the competition is because your plans for the future of VA are not yet clear.) VA's gonna have to have more on its plate than selling and supporting Linux servers or it's gonna lose another half of its value.

    Sooo - does VA have any plans in the directions of ID's or in the embedded market? RTOS initiatives? Anything to differentiate it from other computer builders/linux consultants?

    Put another way - Dell will, before too damn long - be able to put Linux on one of their systems in a sensible cojnfiguration. IBM, among others, can do consulting services/Linux support. What can you do that they can't?
  • ESR = "Corporate Conscious"
    Chris Dibona = Linux Evangelist
    Joe Arruda = Linux Advocate
    Larry Augustin = The Boss
  • Maybe I was one of the very few that noticed, but the VA website used to list Bastille Linux as one of its projects. The idea of a linux distro built on principles similar to those driving OpenBSD (which is what I took Bastille to be about) is a laudable one, but now support for the project seems non-existant... what gives?

    Johnath
  • I've noticed you've based much of your product line on Intel-made motherboards. Is there any plan for producing your own motherboards, which might net greater long term profit margins, or is that too much to delve into?

  • It's:

    "Nobody likes a math geek."

    (I assume the same applies to semantics/grammar/dialog geeks...)

    -Witch Doctor

    This is my cubicle. There are many like it, but this one is mine.

  • Rep. Fred Thompson was up in arms about this. Larry Augustin had meetings with him trying to revoke it, under the auspices that it was inflammatory to the free will of the nation. I have personally met Chris DiBona before, and was able to talk to him for some time about the IPO and everything that happened. Intriguing man, he is.
  • It seems to me that one of the best applications of free software is to bring the "lowest possible price" for a computer down by another 15% or so. Switching to linux could be another step in making computers accessible to less privileged folks. Do you think that VA Systems will ever offer an ultra cheap PC?

    --Jack
  • The move seems to make sense at this level. Whats the inside scoop?

  • Will you be shipping boxes that have an install image (like Mac or Compaq)? This would make a system a lot more supportable for non-geek users. Will we ever see an inexpensive home PC with a "Linux Restore" CD from VA?

  • Good call! I wouldn't mind working for, or at least having a local office here in the 2nd Silicon Valley (The area between Salt Lake City and Provo, Utah). As Linux becomes more and more mainstream, more of these huge companies will need servers and desktops, that work with Linux out of the box. Companies like Novell, and Intel, Sento, and other such growing and already large corporations will need that kind of product availability. So how about it, VA?
  • Ummm, shouldn't that translate into:

    "We're using the Linux bandwagon as our only means of transportation?"

  • Would this mean that the BIOS on the hardware would be Linux-only? How would such an innovation jive with a spirit of "open" architectures? What happens if I invest in VA Linux box(en) and decide a few months down the road that I'd rather run NetBSD or (oh the horrors!) Windows 2000 on it(them)?
  • I think the biggest issue with Linux being a Desktop OS is that it isn't "there" yet. Linux has definately matured as a server OS. The requirements for "desktop OSes" are completely differant.

    I use Linux for everything (development, desktop, games), but I also have enough experience to hack when I need to. My parents wouldn't know where to begin, even if they had a step by step instruction sheet (similar to VCR's) on how to get started. There's too many things about the architecture that get masked with Windows 9x and MACs that make them to be considered "User Friendly"... That's what my parents want... But they would like a bit more avaliability when operating it...

    Going to a GUI installation process isn't the answer to Linux being a desktop OS. I think SuSE's installation is probably the easiest, and it hasn't been GUI since day one. It's about auto administration and maintainence with virtually little or no user direction... ... that's what makes a desktop (home) OS... (Most people don't care about the engine and transy in their cars, but the drivability and reliability are important)...

    I think Linux currently is at the same level of desktop OSes as (Win3.1 & OS/2 Warp 3). Once you got them installed and going a bit, learned what is what and what goes where, they became easier to use... Still some hacking envolved regardless.

    Ultimately, the average user (my parents) will need to step up their computing skills (yeah right!) or Linux will need to be automatus (is this a word?)

    BTW, Larry seems like a normal person. I think that is the most amazing aspect of his interview with Charlie Rose.

    Jonathan Paul Cowherd
    S+LUG Secretary
    http://slug.louisville.edu/
  • You state that the profits from the IPO will help you move into European markets. This would allow me to get a VA Linux box, so I'm all for it. What kind of timescale do you see this happening in? What countries will be first? And will you set up a research lab in Europe similar to what you currently have in the states?

  • competition (Score:2)

    by Anonymous Coward
    since va linux has a valuation which is rather large, are there any purchases which you could make to expand marketshare? sgi for example has such a low valuation compared with earnings (30.0), and they essentially compete in the high end server market and workstation market. could your cooperation on debian expand?

    well i have to ask a question in a second area. with the mac moving into a bsd base, will the ability of applications to be ported to linux expand the workstation market for video, 3d, and graphics applications?

  • I was fortunate enough to be a part of the VA Linux Friends and Family IPO. However, I have a quandary:

    I do not have a single line of code in any Linux distribution, HOWTO document, or any other software project that runs on Linux.

    On the other hand, I do contribute to the Litestep [litestep.net] project, which is sort of a "Window Manager" for Microsoft Windows.

    I guess my question is "Why was I chosen?" I know you would not have a specific reason for this, but it would seem that while I am contributing to a project that benefits Windows, I didn't deserve to be a part of the VA Linux IPO, even if I am contributing to an Open Source project.
  • VA does have case designers on staff. I wouldn't be expecting an SGI workstation case out of them anytime soon, though -- they primarily sell servers, and I'd expect to see better server cases first.

    I suspect that volume is what's holding up introduction of new case designs. Their stuff is already overpriced without havng to pay twice the price to a sheetmetal basher for the same style case as their competitors buy off-the-shelf.

    -E

  • VA does have several device driver authors on staff.

    -E

  • Alright Chris, How much wood, would a wood chuck chuck, if a wood chuck could chuck wood?
  • Most of the things done by VA in terms of "big system" stuff has related to numerical supercomputing applications. (Or at least so it seems.)

    Can you comment on possibilities for developments relating to transaction processing and database management systems?

    "For instances" to make this clearer include:

    There would be considerable merit to establishing tools like this as options for the construction of "back office" applications, particularly providing alternatives to MSMQ/MTS.
  • Well, a woodchuck would chuck as much as a woodchuck could chuck if a wood chuck could chuck wood.

    It's really just a matter of the woodchuck living up to it's potential.

    Chris DiBona
    VA Linux Systems


    --
    Grant Chair, Linux Int.
    VP, SVLUG

  • It seems your company has a lot on its plate. Beginning as "just" a hardware company, you've now grown into one of the largest Linux-oriented businesses around. Hiring such high-profile indivduals as Carsten "Raster" Haitzler, Geoff "Mandrake" Harrison, and Trae "OctobrX" McCombs, acquiring the Linux.com domain, as well as getting behind the Debian distribution. I'm sure you have much more than this going on that I'm not even aware of.


    My question: Where do you see the company focusing its efforts in the future? Can you be as elaborate as possible in your answer? Thank you.

    ----------------

    "Great spirits have always encountered violent opposition from mediocre minds." - Albert Einstein
  • Could you please explain your conflict management techniques/goals when the choice is between profits and good community service (how often does this really happen, also?).

    And, how (did?) this change with the IPO and the responsibility to the stockholders?

    --
    How do you keep an idiot in suspense?
    Tell him the next version of Windows will be faster, more reliable, and easier to use!

  • On your interview with Charlie Rose a week ago, you mentioned that, even though your paper net worth is in the billions, you still live in a modest house and drive a 9 year old Explorer. With its record-setting IPO, certainly all your neighbors must know about yours & VA's success. Do they act differently knowing they live next to a billionaire? Is it wierd to know that one day you'll be living the typical middle-class suburban life, and literally the next (presumably the day the 6 month SEC limit is up) you'll move into whatever house you want and buy whatever and as many cars as you want? What is the anticipation like?

    --
  • I can answer the second part. Augustin was interviewed on Charlie Rose a week ago and said that VA had no plans to make embedded appliances, although he made bones about the fact that Linux could do it, and do it better than anything MS could produce. The thinking behind this rationale was that for every embedded device there needs to be a backroom server to run it, which VA will supply. It makes a lot of sense - why bother spending millions on R&D for some set top appliance when there is a viable market for their product.

    --
  • Most existing programming languages, development tools, and programming processes, were designed with closed development of proprietary software in mind, and are quite adapted to such ends, but are not meant to take advantage or encourage the extreme code evolutivity that free software allows. Don't you think there is a gaping opportunity for the development of tools that enable seamless metaprogramming [tunes.org], such as reflective systems like (actual) pliant [ehess.fr] or (still vapor) tunes [tunes.org]?

    Are you going to invest massively in such tracks, do you think they are merely wishful thinking, are you in a wait-and-see mode, or do you just feel unconcerned? If you think such concerns, if possibly valid, are too long-term to you, what kind of financial infrastructure do you consider appropriate for research on such topics? How do you envision the relationship between free software companies and computer science research centers?

    -- Faré @ TUNES [tunes.org].org

  • Year and a half ago I bought a dual processor screamer with lots of extra goodies, and figured I was paying more for it. But several months later, I saw a Compaq box, similar set of goodies, for $500 more. Surprised me, but didn't upset me :-)

    --

  • SF (Score:2)

    by Signal 11 ( 7608 )
    Sorry if this seems a ludicriously simple question... but...

    about sourceforge, why?

  • I can only answer the sourceforge question as I work on it daily.

    SourceForge will continue to be supported. We have no plans whatsoever of allowing it to disappear. As for what happens to SourceForge should VA have problems ? No clue other than this: VA has always tried to do whats right for the community and will continue to do so. If something should happen to VA and they can no longer continue to provide support for SourceForge, I for one will be pushing hard to release it back to the community in it's existing state and let the community run it through some type of Advisory board.
    But thats just my 0.02
  • I saw a recent interview where you were asked whether you envisioned yourself as Rockefeller or Edison (since Gates was described as more like Rockefeller in an earlier interview). You chose Edison. While I'm a big fan of VA, it would seem to me that you are more a business man than an innovator, employing the Edisons of programming. Would you care to support your interpretation of the response?

    -Chris
  • Does VA Linux Systems have any plans to sell systems with "cool cases"?
    Also, does VA have any plans to produce a Linux based "WebPC" like the one anounced by Intel?
  • Hey guys,
    [a] whats your involvement going to be in the CSS cracking case ? And why are you involved anyway ? (granted that its something i'm relieved about -- a coupla billion dollar ipos v/s DVD consortium is a good thing)
    [b] And do you plan to continue sourceforge indefinitely ? i.e. do you plan to set up a trust fund for it or something that will ensure it sstays afloat even if something happens to VA ?

  • Re:SF (Score:2)

    by Tower ( 37395 )
    "Why Not" was already posted, so...

    From sourceforge.net:

    Who are we? What are we doing? Why are we doing it?

    There is too much information about this project to fit in this introductory page. You should really take the time to visit our Frequently Asked Questions. [sourceforge.net]

    RTFF?

    Sourceforge is a Good Thing(TM), and it also helps promote VA's standing among the community, and therefore, raises more awareness in the market place (for those 42 people who haven't heard of "tech stocks"). It makes them more attractive, and that helps their bottom line.

  • Sure, take the easy way out ;^D But:
    How much Pen could a Penguin guin if a penguin could guin pen... oh, nevermind (my brain just hit that meltdown stage again)...

    "Bah!" - Dogbert
  • I seem to recall from the Atlanta Linux Showcase that VA plans to patent their system for BIOS-level administration of Linux clusters --a hardware/software solution, with the software being GPL'ed IIRC.

    This is my spotty recollection, but I cann't think of any other field where a hardware OEM like VA *can* innovate anyways...

    engineers never lie; we just approximate the truth.
  • First as a nerd, with a crush on open source, and a healthy appetite for money, I have to say you guys are my heroes.
    Having said that, what is your design philosophy? Since youre name is VA Linux, one could expect you do not fabrice systems with MS HCL's in hand, on the other side, would you support installation of, for example, HURD?
    And on a side note... any plans for a Amsterdam branch? :)

    Greetz SlashDread
  • I've yet to see a decently priced system for those of us who are gamers (lowest priced "gaming" system being around $2000). Any chance you'll have such a system in the near future?
  • I got the feeling he was saying that the public won't WANT Linux for their desktop. So far, this appears to be largely true.

    If that's the case, then it's clear that LA got a PhD in EE rather than an MBA in Marketing. The whole point of marketing is to educate the public that they do indeed want a product. Not that I want to see Linux rammed down our throats like some other operating systems I could name, but if you don't spend some bucks educating the public on the benefits of the OS, then why bother to raise funds through an IPO?

    On a related note, Bob Young said in an NPR interview today that consumers don't select OS's, they simply get the OS that their preferred applications run on. This is an interesting argument, considering any Linux application will/should work on any Linux distribution (and most on BSD, or other Unixes as well). Based on his model, there would never be a reason to purchase a given distribution other than cost, which would have to be $0, or maybe $2 if want a pre-burned CD.

  • ESR (Score:2)

    by mochaone ( 59034 )
    What the hell does he do for your company that he's rewarded with $43 million worth of stock. I know he's an Open Source evangelist, but $43 million ?!?!

  • What is VA's stance on the future of network computing, especially in the home? I've ranted on several occasions to friends and business partners that current technologies on Linux make it very possible to run a home PC as an application server with ultra-cheap X terminals in, for example, the kitchen, on the TV and in the bedroom. Is this the type of future work VA will consider?
  • VA has so far been involved with classic motherboard-based platforms (even the rack-mountables) oriented towards business applications.

    What is your position on telco-grade platforms based on hot-swappable compact PCI boards and chassis, NEBS, high-availability, N+1 redundant AC-DC (-48 Volts) power supplies etc...?

  • I'm curious why VA chooses to go with intel processors as opposed to AMD. I don't want to come off as an anti-intel psycho, but I think most of the people in the linux community prefer AMD (Athlon) over Intel (PIII) if not just because of sheer superiority, because of Intel's 'evil ways' (FUD + ID# to be exact). The reason I didn't buy one of your systems for my brother for Christmas is simply because you don't carry athlon models. I don't know what other people think, but if that is a common occurence, you could be losing business... and that is bad. :)
  • In light of all of the recent 'linux support' lip servicing IBM has been doing. Do you see them as a threat?

  • Evolution Of The Death of the PC (Score:3)

    by Effugas ( 2378 ) on Monday January 10, 2000 @02:04PM (#1385879) Homepage
    Death: It Sure Ain't What It Used To Be.

    Over the last couple of years, we've seen a parade of technologies trotted out as a sign of the death of the PC--everything from the Network Computer to "Web Everywhere" style initiatives.

    But the PC hasn't gone anywhere. Alot of this can probably be attributed to its flexibility in adjusting to changing market demands, for example, the emasculation of per system cost(the former NC trump card).

    Thus my question: PCs can change rather drastically over very little time; that much is clear. What form do you see the coming changes taking, and what effects do you see from these changes upon both Linux and the Computer Industry tendancy to go into Death Watch Hypefests over the future of the PC?

    Yours Truly,

    Dan Kaminsky
    DoxPara Research
    http://www.doxpara.com

  • Hardware Compatibility (Score:3)

    by Skeezix ( 14602 ) <jamin@pubcrawler.org> on Monday January 10, 2000 @09:17AM (#1385880) Homepage
    I see hardware compatibility issues to be one of the primary hindrances to people wanting to try Linux. People don't understand why it "just works" under Windows, but often takes tweaking and elaborate configuration to get it to work under Linux, if it works at all. I realize that VA Linux Systems sells top-notch hardware that works like a dream with Linux. However, is there any work being done at VA Linux Systems to improve GNU/Linux's support of hardware?
    ----
  • I've noticed that your computers use Intel's chips and motherboards exclusively. With other Intel-based server vendors joining the Linux fray (Compaq, IBM, etc.), some of whom design their own motherboards that incorporate high-availability features (like IBM's Chipkill technology on their increasingly Linux-compatible Netfinity servers), are you relying upon your Linux expertise and customer service as key differentiators?

    Or are you going to invest more in hardware R&D or possibly source hardware which would allow for higher-availability single-server solutions?

  • Laptops.... (Score:3)

    by CmdrPinkTaco ( 63423 ) <emericle AT chubberware DOT com> on Monday January 10, 2000 @09:51AM (#1385882) Homepage
    This is a couple of questions all relating to one:

    1) what happened to the laptops? You all had them for sale, then stopped. I may have missed the reason, but could you restate the reason that you stopped selling laptops?

    2) are you going to sell them again? If so, when? If not, why?

    As a side note, (IMHO) I think that it would be a very good idea to start selling them again. From a business standpoint, if you can get IT managers more mobile without the hassle of setting up often incompatible laptop h/w on a schweet Linux laptop, there would be a lot of happy geeks out there, myself included.

    Also, thanks for helping out the community.

    eric
    ------------------------------------------ --

  • When did you believe? (Score:3)

    by AugstWest ( 79042 ) on Monday January 10, 2000 @01:37PM (#1385883)
    I'm wondering when the turning point came when people started to believe that Linux could make money. What was your first exposure to it, and what made you decide to pursue it for profit?

    Were there any other "execs" you may have butted heads with along the way who have "signed on" now that things have changed?

  • IPO madness (Score:4)

    by BOredAtWork ( 36 ) on Monday January 10, 2000 @09:16AM (#1385884)
    As more and more developers look to start helping Linux evolve, there are going to be some very cool projects popping up. Is there any chance that VA might give the developers of these projects a few shares, or the chance to purchase them at reduced price? There are also a great many people suddenly showing interest in getting subscribed to developer mailing lists; I've heard at least two comment that they're just hoping to get IPO letter s from the Next Big Company. How closely was the friends-and-family list reviewed to make sure that the individuals were deserving? Do you forsee IPO-prospecting having an impact on development? For example, Joe Developer saying "hey, i'm gonna develop X rather than Y, because there's a better chance of making some money from Company Q's IPO that way."

    --

  • Long Ago... (Score:4)

    by Shaheen ( 313 ) on Monday January 10, 2000 @11:09AM (#1385885) Homepage
    A long time ago, in a college dorm room far, far away, you (Mr. Augustin) helped Yahoo!'s two founders (I forget their names) draft their business plans. The legend goes that you were offered a lucrative job opportunity and/or stock options. However, you refused to join them to build your own business.

    What made you really believe that being a Linux systems retailer would make it big? Also, was it ever a contest to see who could be worth more money? In that case, who is worth more money? You, or the founders of Yahoo!?

  • Can VA Linux develop enough? (Score:4)

    by Malor ( 3658 ) on Monday January 10, 2000 @09:20AM (#1385886) Journal
    I'm curious whether or not the higher-ups at VA Linux think it's possible to develop the company enough to be worth its stratospheric valuation.

    Obviously, a high valuation is partially a self-fulfilling prophecy, because it gives that company the ability to buy others with its high-priced stock. But I would be interested in any other strategies Mr. Augustin has in mind to develop VA Linux into the enormously valuable company the stock price suggests, and how it will affect its relationship with the Open Source world.

    I suspect that creating vast companies like Microsoft, based on Linux, is simply impossible. An enormous service-based organization might be possible, but it seems to me that it would take many years to build one. The GPL is designed to prevent the monopoly, hardball shenanigans that Microsoft pulls. Can building hardware and providing expertise instead generate enough revenue?

  • Intel influence behind the scenes? (Score:4)

    by RelliK ( 4466 ) on Monday January 10, 2000 @10:41AM (#1385887)
    A while ago VA Linux Systems (then called VA Research) used to offer Alpha systems. But soon after Intel's investment in VA, the Alpha systems disappeared. Last I checked AMD systems were not offered either (and don't tell me there is no demand for either Alpha or AMD). Intel is the *only* choice.

    My question is: being a Linux company, will you continue to offer people a choice or will you, like Dell, become a slave to Intel?

    ___

  • Collaboration with Larger Hardware Vendors? (Score:4)

    by dave_aiello ( 9791 ) on Monday January 10, 2000 @09:15AM (#1385888) Homepage
    What has your relationship been, if any, with the larger, more established Intel-based hardware vendors? Do you feel that there is any opportunity for a Linux-centric hardware vendor like VA to work with these companies?

    --

    Dave Aiello

  • Are there any plans to open any locations in the USA, or preferably(for me anyways, considering I live in Canada and it'd be nice to have the ability to buy those kick ass computers locally ;) in Canada? I heard some mumblings that there was a location in Toronto, but I can't seem to find any mention of it. The only problems with this is dealing with the issues of being an internation company at such a young stage, but I'm sure its something that can be easily overcome by multi-billion dollar company =) Also, are there any plans to sponsor events internationally?

  • How will you compete? (Score:4)

    by UM_Maverick ( 16890 ) on Monday January 10, 2000 @10:06AM (#1385890) Homepage
    I remember reading something in your IPO filing about competition from other computer makers. One of the concerns was about what will happen when the traditional "big boys" (Dell, Compaq, HP, etc...) start making linux boxes. As others have mentioned, VA boxes tend to be a little pricey. How do you plan on competing once other people start selling the same Intel-based servers that you sell, for 20% less? Will you have to build a new market for Linux systems (much like you built the original market), or will you be able to take them on straight-up?

  • Competition with other Linux vendors (Score:4)

    by Dacta ( 24628 ) on Monday January 10, 2000 @01:37PM (#1385891)

    While VA Linux's and Redhat's core business (hardware and distributions) may not be in competition, it seems that both companies are moving aggressivly into the online information/commerce market with sites like Linux.com & Redhat.com.

    Do you worry that competition between sites like these (and Andover & LinuxCare etc) might run against the co-operation that has been Linux's strength?

    Do you see a time in the future where you find yourself in a position where your companies interests and those of the general Linux community (and other Linux companies) don't match? How will you deal with that problem, bearing in mind you have a duty to your shareholders?

  • Competing with the big boys (Score:4)

    by Jay Maynard ( 54798 ) on Monday January 10, 2000 @09:03AM (#1385892) Homepage
    With the big computer companies such as Compaq embracing Linux, what is it that differentiates VA Linux Systems? Why should a company buy one of your boxes instead of one of theirs?
    --

  • Why wait on desktops? (Score:4)

    by Cy Guy ( 56083 ) on Monday January 10, 2000 @09:30AM (#1385893) Homepage Journal
    During your Charlie Rose interview last week you seemed to discount the readiness of Linux for the desktop. Don't you think that what Corel and others have done recently has shown that Linux will be ready for the desktop by this summer (once kernel 2.4 and Xfree86 4.0 have been released and fully vetted of bugs), if not sooner?

    I see a great oppotunity for Linux to establish itself as companies are deciding whether to transition to Win2K or Linux for their servers. One factor in their decision is that MS is marketing Win2k as an OS for both desktops and servers. I think the Linux community has to be prepared to argue it is just as ready for both platforms.
  • In your S-1, you mention that you have applied for a patent. Here is the relevant paragraph:


    Our systems consist primarily of commodity hardware components in
    combination with the Linux operating system. While we have developed some
    proprietary techniques and expertise, most of our activities and systems are not
    protectable as proprietary intellectual property and may be used by competitors,
    harming our market share and product revenues. To protect our intellectual
    property, we generally enter into confidentiality or license agreements with our
    employees, consultants and corporate partners. We have also recently commenced a
    patent program and to date have filed one patent application. In general,
    however, we have taken only limited steps to protect our intellectual property.
    Accordingly, we may be unable to use intellectual property to prevent other
    companies from competing with us. In addition, we may be unable to prevent third
    parties from developing techniques that are similar or superior to our
    technology, or from designing around our copyrights, patents and trade secrets.


    I realize you will not want to disclose the details of your pending patent application, but I am interested in knowing whether or not it is a software patent. And, what VA's policy towards software patents is, in general. Will VA apply for software patents? If so, how will they be licensed? Will they be made available on free software terms to free software developers?

  • Linux Development (Score:5)

    by Hrunting ( 2191 ) on Monday January 10, 2000 @09:16AM (#1385895) Homepage
    As a Linux systems retailer, you're in the unique position of actually being able to foster development of the operating system that you sell with your systems.

    What areas of Linux do you see as needing the most attention? As a company, what would be the best change(s)/addition(s) to Linux and/or it's distributions to help you market your systems?

  • Much like most net-related IPOs, VA's valuation is impressively high. Much higher than bigger and older companies which have proven to be able to actually MAKE money. So let's assume that this valuation actually means something. How do you see VA Linux fulfilling this promise, IOW, what will it be like when it will sell as much as its stock price mean? Will it compete directly with Compaq and the likes on the server market?

    On a related note: VA Linux is currently mostly in the Linux server and workstation market. Are you considering expanding towards other devices, like special purpose appliances?

    And last BUT NOT LEAST. There's a few reasons why I'm not going to buy a VA Linux box NOW. Well first of all I live in Europe and I don't think you do sell here. And then ... YOUR CASES ARE UGLY! :) Not that it's THAT important, but that's one of the reasons why I've always dreamt of an SGI workstation ... So are you going to hire a designer anytime soon?

  • Joint marketing effort? (Score:5)

    by Floris ( 21037 ) <kraak@ci s t r o n.nl> on Monday January 10, 2000 @09:23AM (#1385897) Homepage Journal
    What I have always been wondering about when watching all the little companies (and the not-so-little companies) that build and support Linux as an OS is when we will see Linux commercials on big-time commercial TV.

    Some CEOs of Linux-related companies have said that their goal right now is to "grow the Linux market" rather than competition with the other vendors. The main competition would be Microsoft rather than each other.

    However, Microsoft has a massive marketing machine at its disposal. The Linux vendors dont have nearly its marketing muscle. Are there any plans for a joint marketing effort to counter that?

  • Prices and availability (Score:5)

    by FascDot Killed My Pr ( 24021 ) on Monday January 10, 2000 @09:10AM (#1385898)
    Two questions:

    1) Every time I need to buy a computer (for self or business) I check out VA Linux Systems. But your prices are always $500-$1000 higher than even the Microsof-tax laden goods from someone like Gateway or Dell. Is this all due to volume discounts or is there something else at work?

    2) When will VA Linux be selling laptops?
    ---

  • IPO Question (Score:5)

    by jezzball ( 28743 ) <`slash2' `at' `dankeen.com'> on Monday January 10, 2000 @09:07AM (#1385899) Homepage Journal
    I know how you choose the people you picked as friends and family (being one of them), but were there any specific HOW-TOS you looked through? Did you weight projects? Is there a place where you've amassed this information for people to look at?

    I was quite surprised myself at being picked, as several other people who I felt have contributed more than me weren't.

    Jezzball (Jobe)
    ls: .sig: File not found.

  • Plans for other platforms? (Score:5)

    by imac.usr ( 58845 ) on Monday January 10, 2000 @09:23AM (#1385900) Homepage
    Specifically, the new PowerPC motherboards that some companies are planning to build...is VA planning any systems around these boards, or do you see a market for platforms other than i386 in your company's future?



  • The next step (Score:5)

    by DarkRyder ( 103165 ) on Monday January 10, 2000 @09:14AM (#1385901)
    Now that the IPO period is over, what directions do you see VA Linux moving in? Are there projects that have been placed on the back burner until the IPO could 'make it possible'? If not, have projects been untertaken, or put into the planning stages, that wouldn't have been if the IPO hadn't taken place? Or is this just a calculated business move, with no plans beyond simple, steady growth as a company behind it?
  • I've been watching with keen interest both Linux and the open source movement with great interest for the past few years. Now with anything Linux being the darling of Wall Street, it would seem all one has to do is mention Linux and watch the rush of money.

    My question is this:
    How do you, personally, view your fellow Linux distributors? Do you see them as competition to be toppled? Or do you view them as competitors in a worthwhile cause?

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