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The Future of Mandrake Linux
Mar. 11, 2002

MandrakeSoft has issued an urgent appeal to the Mandrake user community (individuals and companies) to support the company during the next few months while it struggles to achieve profitability . . .

Today we are on the verge of releasing Mandrake Linux 8.2. This latest version of our flagship product introduces many new features such as an encrypted filesystem, automatic detection of "hot-plug" devices, refined & polished graphical user interfaces, and much more that will be detailed in the official announcement. Judging by the response of beta testers, we're certain that 8.2 will be a fantastic release which will be quickly adopted by Linux users everywhere.

Even though all of us here at MandrakeSoft are excited about the upcoming release, we've also been distracted by financial concerns. Despite continuous good reviews in the press; despite having millions of users throughout the world; despite producing an award-winning Linux distribution that is a solid competitor to both UNIX and Window$, the Mandrake Linux distribution's short-term future is in jeopardy due to a simple factor: money.

As a company, we make our revenue by selling packaged versions of the distribution and by delivering services such as consulting, training, etc. -- but our development costs and community-based services are not yet covered by income. It is estimated that we will "break even" by the end of 2002, but it is unlikely that MandrakeSoft can remain unchanged during these next few months without drastically cutting costs unless additional revenue is generated quickly.

The issue that we are discussing concerns the short-term future only. Since mid-year of 2001, our service and product activities have increased dramatically -- enhanced by the growing confidence of several distinguished companies. Since MandrakeSoft's revenue continues to grow and the company remains on target to become profitable at the end of 2002, it would be a real loss and a great disservice to the huge community of users for us to cut positions to meet short-term goals when the future looks so bright.

The company's long term prospect are very good, but we are still paying for the "sins" of the previous management. Even when the company becomes profitable, it is important that users have a loud voice to remind management and investors that the "community" has been -- and should always remain -- a crucial part of MandrakeSoft's success. As we've said before, a company that is mostly controlled by business people & investors would be drastically different than if controlled by its users.

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