SugarCRM Finds Sweetness in a Future IPO
November 23, 2012
Open source companies are gaining a lot of attention from the corporate world. Smaller companies are now turning cents into dollars and many open source startups want a piece of the pie while they can. Gigaom tells us that “Open-Source CRM Player SugarCRM Talks Up IPO.” SugarCRM developed online software that allows its clients to track sales, marketing, and customer support. SugarCRM uses a SaaS model for its product.
The head CEO Larry Augustin said that the company’s main goal is to become a public company and it might achieve that in 2013. Augustin has not been successful by going public in the past:
“Despite signs that enterprise SaaS is the place to be — Workday’ share blew past expectations on its October 12 launch — Augustin signaled the need to proceed with caution. He’s been burnt before. As Bloomberg pointed out, Augustin was CEO of VA Linux, another open-source oriented company, which went public in 1999, and quickly saw its market cap spike at $15 billion based on sales of $12 million to $15 million, and then crater in the dot.com bust. The company unwound over the years becoming SourceForge, then GeekNet. What was left was acquired in September by Dice Holdings.”
SugarCRM is proceeding with caution, but Augustin has high hopes for the company’s future. We will have to follow where it goes. LucidWorks went through its own change earlier this year. It left behind its old image of Lucid Imagination to become the even better LucidWorks, still armed with the same great search applications for enterprise and Big Data.
Whitney Grace, November 23, 2012
Sponsored by ArnoldIT.com, developer of Augmentext
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