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Looking Into Mozilla's Financial Success

Posted by CmdrTaco on Mon May 21, 2007 11:03 AM
from the take-a-piece-of-that-action dept.
NewsCloud writes "'Thanks to the Google agreement, the Mozilla Foundation went from revenue of nearly $6 million in 2004 to more than $52 million the next year [similar revenue is expected in 2006]...In 2005, the foundation created a subsidiary, the for-profit Mozilla Corporation,...mainly to deal with the tax and other issues related to the Google contract...By creating a corporation to run the Firefox project, Mozilla was committing to be less transparent. In part, that is because Google insists on the secrecy of "its arrangement and agreements," said board member Mitch Kapor.' The NYT article compares this approach to Wikipedia's ongoing fundraisers and raises the issue of transparency in open source projects. i.e. should Firefox's 1,000 to 2,000 developers and 80,000 evangelists have full knowledge of how revenue is spent as well as the extent to which Google is able to influence strategy vs. other stakeholders."
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  • amusing (Score:5, Funny)

    by Red Flayer (890720) on Monday May 21 2007, @11:10AM (#19209609) Journal
    FTA:

    Finally, there is the problem of what Mozilla should do with the money, at least the portion that isn't being reinvested in the Firefox.

    Yes, well, bring that up on the Slashdot if you want some suggestions on where to spend the money. Maybe even ask the Google about it, since that's where the money came from.

    I don't know why use of "the" here amuses me so much, but it makes the author seem very unfamiliar with the companies and products they are writing about.
    • Re: (Score:3, Funny)

      The correct thing for anyone to do when encountered with a sudden massive increase in wealth is to write a ridiculous article [linuxtoday.com] about it. That way, with any luck, the article can go from merely silly to pants-wettingly hilarious when the money goes up in smoke later.

    • I don't know why use of "the" here amuses me so much, but it makes the author seem very unfamiliar with the companies and products they are writing about.

      I thought the author was insinuating that Mozilla was putting its money into the 1980's, Soviet, thought-controlled, mach 6 capable, stealth fighter piloted by Clint Eastwood. http://www.imdb.com/title/tt0083943/plotsummary [imdb.com]
    • Re: (Score:3, Insightful)

      Yes, well, bring that up on the Slashdot if you want some suggestions on where to spend the money.

      Sure, I'll make a suggestion. $52M spread over 1000 developers means an average compensation of $52,000 per developer -- naturally, scaled based on the relative contributions of each. So some may only make $100 while others may make $1M. Even if you consider their entire 2004 revenue of $6M is taken up by expenses and that it holds true today, that still leaves an average of $48,000 per developer. Shouldn't this be the way contributors to open source get rewarded? Or will they make nothing except for

  • by Timesprout (579035) on Monday May 21 2007, @11:11AM (#19209611)
    Apparently its ok for Google to chuck cash at Mozilla to default to them, but they dont want the terms of the deal disclosed? Dodgy. Imagine the screaming hissy fits about conspiracy if Microsoft brokered a similar deal with Opera to default to whatever MS call their seach engine these days (yes I know Google got there first as well).
    • It's hard to see that which is transparent.

      In any case, as much of a paranoid individual I am, I think that Google *has* to be secretive. Google has been targeted by Microsoft, Yahoo, and other huge companies which have a long history of play really really dirty. Google has been around a while now and has no real history of being dirty. Their NDA for interviews which slashdotters freaked about, if they had RTFA and then read the NDA, most of them would have seen the articles took clauses out of context, which you simply can't do, and in context it made sense.

      If I were a rather new, but large, rich company with a lot to lose, I'd be keeping as many secrets as I could from the companies and people who would love to see me fail.

      Know your enemy, and make sure it doesn't know you.
      • Re: (Score:2, Interesting)

        How has Yahoo played dirty? Just curious... I don't recall anything in particular.
      • The question is not whether transparency is in Google's interest (they certainly think that it is). The question is whether transparency is in the interest of Mozilla/Firefox, and ultimately of its users.
      • The issue isn't Google, it's the Mozilla foundation. Just as you posit that Google *has* to be secretive, the Mozilla people *have* to be transparent and open. They represent the collective work of thousands of developers, each of home should enjoy 'ownership' in what they ultimately produce. With upwards of $50 million in play, they definitely deserve to know where that money came from and how it's being used.
    • by poadshaw (1056186) on Monday May 21 2007, @11:28AM (#19209791) Homepage
      I disagree,
      I didn't pay for Firefox. It's a rockin' product, but how does the fact that I use it give me any rights to see what deals the owner's / developers of this F/OSS project have? I think the problem is on the other side. Google is a publicly traded company, so they should have their stock holders asking them the tough questions, not bothering a F/OSS project.
    • If the Mozilla Foundation goes down a path of secret agreements, proprietary code, and strings-attached Google sponsorship, then wouldn't the original contibutors that want to continue on with the original project goals be considered forkers? Iceweasal anyone [wikipedia.org]
      • Re: (Score:3, Funny)

        Did anyone else read that as
        "a path of secret agreements, proprietary code, and G-strings attached sponsorship"?

        Anyone?

        (Man, I need to get laid more often)
    • by traindirector (1001483) * on Monday May 21 2007, @11:43AM (#19209925)

      Imagine the screaming hissy fits about conspiracy if Microsoft brokered a similar deal with Opera to default to whatever MS call their seach [sic] engine

      I can't imagine the screaming hissy fits if Microsoft made this type of deal with Opera. I doubt there would be any. Opera has no more responsibility to its developers than any other for-profit corporation. And they're free to follow money wherever it may lead.

      Mozilla deals are different because the Mozilla non-profit organization is a representation of the community that develops Gecko and the projects they base on it. When a for-profit company is founded with an ambiguous relationship with the original organization, the role of the development community comes into question. Sure, they're still be contributing to GPL code, but will the spirit of the project still inspire such developer devotion, with so much non-paid contribution? Could they?

      • by asa (33102) <asa@mozilla.com> on Monday May 21 2007, @12:08PM (#19210209) Homepage
        "When a for-profit company is founded with an ambiguous relationship with the original organization, the role of the development community comes into question."

        What exactly is ambiguous about this relationship. Mozilla has been building search into the browser for about 8 years now. Google has been the default for almost as long. Google, along with other search companies, recently (a couple of years ago) started paying Mozilla for this feature. Mozilla discloses its full financials each year. Mozilla has said, repeatedly, that the bulk of revenue comes from search partners and that the majority of search revenue comes from (obviously) the default search service. Where's the ambiguity?
    • by asa (33102) <asa@mozilla.com> on Monday May 21 2007, @12:12PM (#19210261) Homepage
      "Apparently its ok for Google to chuck cash at Mozilla to default to them,"

      Actually, we've been defaulting to Google as the default search engine for about 8 years, long before there was a financial relationship.
  • It will be interesting to see how much influence the Mozilla Corporation becomes on the project.

    Given the way money and power corrupt, I'd say there's a fork coming in the next 10 years.

    All hail the IceWeasel! http://en.wikipedia.org/wiki/Iceweasel [wikipedia.org]
    • Re:Here We Go.... (Score:5, Insightful)

      by speardane (905475) on Monday May 21 2007, @11:30AM (#19209801)
      sorry what is the difference from Sun or IBM or any other big corporation sponsoring developers?

      I expect to get paid, I am not surprised when others do too...

      I don't buy this quasi-religious non-corporate ethos as the best justification for open source - it's better engineering because it gets quality unrestricted peer review

      I want a quality, well engineered genuinely innovative OS - what better justification?

      as long as Google etc... etc... don't suddenly expect to own the code it's great

      • Re:Here We Go.... (Score:5, Interesting)

        by xappax (876447) on Monday May 21 2007, @11:48AM (#19209971)
        I expect to get paid, I am not surprised when others do too...

        The thousands of volunteers who do much of the actual work on Firefox don't expect to get paid in dollars, but they do expect to be "rewarded" with some kind of involvement and input in their own project.

        This isn't so much about Google giving money to Mozilla as it is about Mozilla obfuscating its processes from its own volunteers. Google is giving giant amounts of money to Mozilla because of the hard work of the Firefox volunteers. I don't think the volunteers expect a dime of that money, or even a vote on how it's spent, but they'd probably at least like to be able to offer suggestions on how to spend it. As it stands, they aren't even allowed to know what's happening to the money, or what kind of agreements were attached to it.

        The obvious response to this complaint is "Well, it's open source; If you don't like it, go fork your own browser!", and I suspect exactly that may happen if Mozilla continues to show this kind of disrespect to the people who are, to a large degree, responsible for the foundation's success.
        • Re:Here We Go.... (Score:5, Insightful)

          by asa (33102) <asa@mozilla.com> on Monday May 21 2007, @12:44PM (#19210695) Homepage
          "This isn't so much about Google giving money to Mozilla as it is about Mozilla obfuscating its processes from its own volunteers."

          What exactly is Mozilla doing to obfuscate its processes? Is providing a dial-in number to the weekly Mozilla planning meetings some kind of obfuscation? How about dial-in numbers for the Firefox meetings and the Gecko meetings and the Support meetings and the Marketing meetings? Is that also obfuscation? How about the public Mozilla wiki that documents all of the product and project proposals, roadmaps, PRDs, buglists, etc.? More obfuscation? And the newsgroups where all of the planning discussions happen, where all of the tricky technical issues are openly evaluated? And an open bug tracking tool where all of our implementation bugs and patches are publicly discussed, reviewed, and explained? Is that just more obfuscation? How about the annual financial disclosures where the community can see exactly how much revenue Mozilla generated? And the announcements of all of our new hires (many, including project and product leads hired from volunteers in the community) All obfuscated?
      • sorry what is the difference from Sun or IBM or any other big corporation sponsoring developers?

        You are blurring the ways that an IBM or Sun interact with GPL'd projects versus mozilla for the sole purpose of disagreeing with my bias. Please, read on....

        I want a quality, well engineered genuinely innovative OS - what better justification?

        1. That's okay except history is full of organizations where success literally crushes innovation. The specter of failure looms large. So large, no risks are taken.

        2. In
  • by crush (19364) on Monday May 21 2007, @11:14AM (#19209639)
    When you compare the reason that the free SSL certificate providers like CAcert have been kept out of Mozilla's root certificate list (because CAcert can't pay up $250,000 for a bullshit audit from some US accountancy organisation which proves that CAcert won't mismanage funds), and now we have Mozilla doing secret deals with Google (and who knows, they could do them with Microsoft in the future). Mozilla is moving rapidly into the EvilNonOpenCompany territory... but at least the code is all GPLed.
    • by kebes (861706) on Monday May 21 2007, @11:37AM (#19209861) Journal

      but at least the code is all GPLed
      (Actually Mozilla products are not released under the GPL but rather their own open-source license [wikipedia.org].) The fact that it is open-source is the crucial bit, since that's what, ultimately, gives the users the power in this whole situation. And that's why I'm not worried.

      Thus far, Mozilla has done nothing but good things (in my opinion). They have created a nice browser and email client, distributed them as open-source, and have been aggressively promoting their products and FLOSS in general. In short, I trust them... because they have earned that trust with their actions.

      So, with regard to this Google deal, I'm going to give them the benefit of the doubt, and assume that they are making decisions that benefit the community. So far, we have no evidence of anything shady about the deal. (They have disclosed that the money is in exchange for Google being the default, but not the only, engine in the search bar... which is fine in my book.)

      However, I'm not a fool (or at least I like to think so). And if Mozilla is found guilty of shady deals, or "betraying" the community of people who are currently evangelizing and supporting Mozilla, then I will change my stance quickly--as will most others in the community I think. The important point is that because the source-code is available to the community, everyone is empowered to fork the project and ignore Mozilla if that becomes necessary. It would be a shame to loose the Firefox brand, but at least the work that went into the codebase would not be lost.

      It is this "power to the community" that makes me not worry so much... both because it means that if Mozilla becomes "evil" we have an immediate counter-reaction... and also because the existence of this possible counter-reaction makes it rather unlikely for Mozilla to ever turn their back on the community.
      • by d3matt (864260) on Monday May 21 2007, @11:42AM (#19209917) Homepage
        Actualy, Firefox is tri-licensed [wikipedia.org]. So take your pick. If you want to redistribute the code under the GPL, feel free to do so.
      • You're actually wrong there, Mozilla Products (Firefox, at least), are triple-licensed using the MPL, GPL and LGPL. Originally, they were only licensed using the MPL, but they went to some trouble to add the GPL and LGPL. See their relicensing FAQ [mozilla.org]
      • Re: (Score:3, Interesting)

        "Thus far, Mozilla has done nothing but good things (in my opinion). ... I trust them... because they have earned that trust with their actions. ... So, with regard to this Google deal, I'm going to give them the benefit of the doubt, and assume that they are making decisions that benefit the community. So far, we have no evidence of anything shady about the deal."

        I disagree. There is plenty that is shady in Mozilla and it's increasing.

        Basically, there is a force within the Mozilla Foundation that's dedica
  • It's not so much that the Mozilla Corporation continues to paddle around in the murky waters as it's more about how *content* the Mozilla Corporation is to be in murky waters.
  • by Anonymous Coward
    Do slightly less evil than Microsoft
  • scale (Score:3, Informative)

    by stoolpigeon (454276) * <bittercode@gmail> on Monday May 21 2007, @11:18AM (#19209687) Homepage Journal
    we are used to looking at systems and asking, 'will it scale?'
     
    when you look at the products that do scale- or implement something at a very large scale, it takes money. i've not seen an exception yet. i don't care about firefox, google and their deal - as long as the browser works the way i want.
     
    on a side note-- as for what to do with the 'extra' money. i'd love to see it invested in making other open apps - like sunbird and thunderbird great.
  • by traindirector (1001483) * on Monday May 21 2007, @11:18AM (#19209691)

    Any time a project gets big and starts bringing in money, it gives up a certain amount of control that each person who works on it previously had. When I heard they were making a for-profit corporation to make secretive deals with massive corporations like Google, I initially thought things were worse than they are. But there's no question that there's a slippery slope in this deal where an open-source project that was previously fueled by the interest of developers could become entrenched and weighed down by the monetary and business aspects in the politics of a company.

    The best way to keep things open and developers interested is to release all the information except that which Google requires be kept secret. It's already pretty clear the type of revenue that is coming from the Google. When things get this large, it's easy for those interested in developing to fall out of touch with something that resembles Microsoft a lot more than a community undertaking.

    • Re: (Score:3, Insightful)

      Tricky isn't it? We all want Firefox (and open standards) to beat Flash, Sliverlight etc. to beat coporate lock in.

      But is that open standards browser now a corporate lock in?

      But, but... "do no evil"... we can trust google?

      I say take their money, buy some good developers, then run ;-)

      monk.e.boy

      • Re: (Score:3, Informative)

        "But is that open standards browser now a corporate lock in? But, but... "do no evil"... we can trust google?"

        What corporate lock-in? We've been providing built in search in Mozilla applications for the better part of a decade. We have always provided multiple search services and an easy mechanism for adding additional services (there are about 12,000 alternative search services here: http://mycroft.mozdev.org/ [mozdev.org] )

        You don't have to trust Google. You can decide whether or not you trust Mozilla to pick reasona
    • Re: (Score:3, Informative)

      "The best way to keep things open and developers interested is to release all the information except that which Google requires be kept secret."

      We did this for both 2004 and 2005 and will be doing it for the 2006 year financials (and then 2007 after that.) There is nothing secret here except the specific financial details that Google will not allow to be disclosed. It's not that hard to look at the Mozilla financials, read the statements from Mozilla explaining that the overwhelming majority of Mozilla's r
  • That's a lot of money. I hope the developers who did all the work don't come to feel taken advantage of through the maneuverings of these foundations and corporations. Transparency is the only way I know to handle this kind of thing.

    What's the point of the secrecy in the google deal anyway?

    How about Mozilla opens the kimono? If Google likes secrecy more than the deal itself, I'm sure that MSN or Yahoo or another competitor will be happy to take their place...
  • And this is surprising because? It should be no surprise that the same people churning out PR about "Web OS" vaporware (Mozilla) are financed by the company that would stand to gain the most with a "Web OS" (Google).

    i.e. should Firefox's 1,000 to 2,000 developers and 80,000 evangelists have full knowledge of how revenue is spent

    Hmmm...a couple hundred/thousand contributors in the dark and a $52M bullseye. I'm not a lawyer, but if I was I'd probably be busy trolling for anyone wanting to class-action -iti

  • I'm glad (Score:5, Interesting)

    by joe 155 (937621) on Monday May 21 2007, @11:34AM (#19209837) Journal
    I'm happy Mozilla is making a nice amount of money, that's really the point we are trying to make with the GPL isn't it? you can still be commercially viable and open source - don't fear it...

    I would also say that there is no danger for the community, it'd be really easy to fork it if things really got that bad... hell, we already have Ice Weasel...
  • No, Mozilla's developers and evangelists should not have more control over the ways money is spent. People who live lower on the totem pole often do not understand the true costs and requirements of doing business. 2000 developers arguing over the neccessity of spending a few hundred dollars will do no good for the overall project.

    Some will claim that only a small percentage of the overall developer base will be interested in it, but this is still an invalid position. If they want to participate in those ki
      • Yes, it does sound ironic. But in a corporation, anyone can be silenced, and relatively easily. Given a compotent and confident base, it can be maintained.
  • Do slightly less evil than Microsoft

    Aren't we all?

  • They should spend the money to develop the social networking features that their userbase is begging for. Then, they should integrate a calendar and mail client, and only make it available as one big download.

    They could call it... Mozilla Navigator...

    No, but seriously. How about paying some major contributing developers, and maybe hire some on full time to develop better web standards support, instead of fucking around with features like social networking and offline browsing. Features that are way out o
  • by asa (33102) <asa@mozilla.com> on Monday May 21 2007, @12:01PM (#19210121) Homepage
    "By creating a corporation to run the Firefox project, Mozilla was committing to be less transparent."

    And this follow from what? There is nothing about the existence of the Mozilla Corporation that commits us to being less transparent. That's just bunk and it makes no sense given how transparent we are from our development process and planning to our financials.

    As far as the details of specific financial relationships with search partners, those were never disclosed in detail (long before the creation of the Mozilla Corporation, in Mozilla Foundation days) and probably won't be since our various partners weren't then aren't now willing to divulge the specifics of their financial relationships with anyone. Mozilla is as transparent as we can be around those relationships, releasing our annual financials and explaining that the bulk of it comes from relationships with various search partners including our default search, Google.

    The article overall is fine, but that line is just fiction.
  • From the search box in firefox do a search on Amazon. Look at the url. See that, "mozilla-20" in the url? That's mozilla's Amazon Associate link. So if you, like me, tend to buy stuff from Amazon after searchinf for it with the firefox search box, then Mozilla is getting a percentage of whatever you buy. I don't mind that, but I've just never seen it mentioned anywhere. It would be nice if they were a bit more upfront about that kind of income as well
    • Of course they don't talk about it. The F/OSS movement generally regards software doing something without the users informed to be evil. Making money off of someone, without telling them, is (IMO) a characteristic of spyware or malware - not software I want to use.
      • In my opinion that's exactly the wrong way to look at it, at least when we're talking about Amazon affiliate links. Instead, I look at it this way: Whenever you buy a n item at Amazon.com without using an affiliate code, you're throwing money away - you could be using an affiliate link and donating that money to someone you wanted to support. The fact that Mozilla sets that affiliate ID to a reasonable default (support the browser you're using) when you explicitly use the built in Amazon search box is a feature, not a bug.

  • should Firefox's 1,000 to 2,000 developers and 80,000 evangelists have full knowledge of how revenue is spent


    Yes.

    Open source was a method that is unheard of for creating and publishing things some time ago, and its proving that it is an unprecedented success, as it was pitted against hulky big proprietary method-using corporation's stuff and coming out stronger every day.

    Some non-it sectors and foundations are going to employ open source methods for doing things. Manufacturing, hardware was recently discussed. If it goes like this, we can find many stuff being further developed by open source methods, imitating its success in i.t. So, it is changing our world.

    Now hear this - privacy, finance and transparency are the present issues to integrate with open source, but when they are once integrated with it, and a transparency by ensuring privacy and a usable financial method is achieved, then there will be no reason not to implement these methods in areas from manufacturing to government.

    in short, i am telling that the methods invented in open source foundations can be the key to revolutionizing the governmental systems in the world, getting much more closer to direct democracy and full transparency concepts.
  • It's funny to see all these "Mozilla is Evil!" posts. So what if Mozilla made corporate subsidy? It's been a year know that Moz Co has been in operation, so where is the fallout? Did Mozilla the organization do anything shaddy? The whole Iceweasel thing is a lot of bullshit, if Mozilla wants to engage in marketing they have to protect their trademark, there are no exceptions. Mozilla's policy on trademarks is very sane, they don't act in an aggressive manner, they get in contact with the right people and so