Moving Up Down Under:
Analysis of a Mail Tool Startup

   
  by  Nancy Cohen    
     
 

Forrester’s Research’s principal analyst Carl Howe says it as well as anyone: Open Source companies can stay in business as easily as they can tank. By now it should be clear that there’s no a priori truth that an Open Source entrepreneur can’t stay viable.

Naysayers, unable to wean themselves off Horatio Alger archetypes who make the covers of Forbes and Fortune, otherwise focus on companies that go belly-up or that fight over license infringements in court, with no inclination to stick around and observe the less dramatic in-between.

As Howe retorts, “Open Source critics are looking for the next Microsoft. That’s not what Open Source is about. There are Open Source companies like Red Hat that showed a steady climb to profitability as service-based businesses. By nature, Open Source is about slow-going, not very glamorous, lower-margin businesses. Open Source businesses are about people picking up the phones quickly and solving problems.”

Somewhere in NorthQueensland, Australia, one developer/salesman/business executive named Paul L. Daniels says ‘Amen.’ The company is simply his initials, PLD, and the Open Source portfolio that his company carries is simply solid.

PLD is a software company specializing in applications that help ease control and enforcement of e-mail content. PLD’s bread and butter is in what it actually sells, which is an e-mail content-management tool called Xamime. All other items at PLD, including Inflex (a script based content tool), ripMIME, and alterMIME (email attachment tools) are Open Source projects.

 
       
 
PLD SOFTWARE SNAPSHOT

PLD Software formed in February 2001 in North Queensland, Australia
http://www.pldaniels.com/

Focus
E-mail application software sold commercially and under Open Source license schemes, mostly BSD-style
http://xamime.com

Open Source Foundation
Linux (Slackware, SuSE, RedHat)
FreeBSD (4.x)
Apache WWW servers
PHP WWW Scripting
Sendmail SMTP servers
PostgreSQL servers

As developers and vendors treading the deep waters of e-mail administration can attest, mail-management tools, virus scanners, and other supporting software for security-conscious mail administration are in demand. System planning has not gotten any easier for IT managers looking for e-mail structures that cover all the bases of speed, efficiency, availability, and security. (For a detailed roundup of what’s working today as mail transfer agents and MAP solutions, see e-Open vol.13 , “E-mail architecture: "A Roundup of MTAs and IMAP Alternatives by Kris Buytaert, a senior consultant at Stone-IT.)

Daniels sniffed the urgency for content scanning when he was still an employee, before his second coming as Open Source one-man show. “The initial demand seed for Xamime came from pushy staff members within a large corporation I worked for, as an R&D manager,” he says. The corporation’s satellite offices were being dominated by NT servers, but there was increasing demand to produce a bidirectional inbound and outbound e-mail content scanner at the mail-hub, using Linux and Sendmail, for the sake of virus prevention and corporate e-mail policy enforcement.

 
     
 

The resulting product was Inflex, released to Open Source in late 1999, at the time the only scanner capable of bidirectional scanning in sendmail. Daniels found that demand for the product outstripped expectations The following year, 2000, the company collapsed, leaving Daniels jobless but not helpless. As with other Open Source devotees, he thought the what-if of doing business in Open Source. “The conversion from script-based Inflex to Xamime commenced.”

Daniels started his company, PLD Software, precisely to embody Xamime, Inflex, and all other related products to attract both commercial and public interest. Currently, PLD supports nearly a dozen Open Source projects. And it has real customers. Drawing power: With Xamime's GUI front end, existing non-technical staff are positioned as ‘administrators’ within five minutes, says Daniels. “Managers don’t ask technical details; they ask for end results. Being able to prevent Joe in Accounting from sending or receiving any attachments without breaking open the sendmail C source code is one of the simple things that administrators need to be able to do. Xamime gives that power to the right people immediately.”

Xamime provides an administrator with a minimized amount of information content per page via its graphical interface. Through this interface, Xamime enables administrators to deploy content control and e-mail usage policy rules quickly. “Xamime provides aspects of control which MTAs simply do not have, but everyone wishes they did have,” says Daniels. Almost all configuration files look incomprehensible, no matter how cleanly written. People are less repelled by GUI-based representations, he says, which greatly reduces what he calls “the fear curve,” not to be confused with the learning curve. But where there’s fear there’s no gain.

“The fear curve is important, because it acts as a direct inhibitor to learning,” he states.

So who’s buying? Daniels says that Xamime has attracted a group of customers and distributors. Customers to date have come from medical, legal, ISP, university, and textile sectors. Xamime also is working through distributors in South Africa, which is its fastest-selling market, Germany, India, United States, Philippines, and Australia.

 
       
 
POSTFIX SNAPSHOT
Postfix, formerly known as Vmailer, was developed by Wietse Venema, author of TCP Wrapper and Satan, both well-known security tools. Released by the end of 1998 as the IBM Secure Mailer, it has since lived on as postfix.

Modular

Resembles sendmail in configuration concept, not syntax

Good LDAP, MySQL, and anti-SPAM integration

Some time last August, Daniels began another path of development: Xamime moved into working with Postfix because there was an increased demand for Xamime to function with Postfix with a special install script system created specifically to cater for the special needs of Postfix installations. postfixbeta@pldaniels.com.

The very fact that Daniels carries the ball on his own is quite impressive. We’re talking about an Open Source business where Daniels writes the manuals, secures the media of CDs, boxes, and license papers, talks to customers, and tracks bugs. “No, that doesn’t leave me with very large slices of time,” he comments.

Still, Daniels feels there’s no way for the business to go but up, based on sheer business needs. “Xamime strikes at the market segment which will become more important as legislation is passed that forces corporations and ISPs to become responsible for the content flowing through their servers. Xamime covers the areas of spam control, anti-virus, corporate espionage prevention, and improved resource utilization.”

 
     
  As for business modeling, Daniels has chosen to go with a BSD-style license and to have Xamime “strike a resonance between Open Source and commercial.”

There is resonance with the ‘proprietary tinsel’ strategy for survival. Eric S. Raymond in his open letter to several Open Source news outlets a year ago explained that hanging some proprietary tinsel off a product makes it psychologically easier for middle managers to sign their checks, perceiving that with a pricetag comes something real. Raymond continued: “If we were still in a boom time, we might still have the luxury of perfect doctrinal purity. But face it, people, it's pretty much raining crap out there macro-economically. Capital spending is in the tank and it's probably going to get worse before it gets better. Until things turn around, Mr. Middle Manager is going to be even more conservative than usual and thus more likely to be penny-wise and pound-foolish in the way that particularly hurts us.”

Xamime contains two core programs, ripMIME and alterMIME, offered as Open Source under the BSD-style license, a choice that resulted in Daniels enlisting both Open Source developers and commercial support.

Don’t tell Daniels he’s limiting his chances by committing to Open Source: “By releasing useful, non-key components to the community, realistic testing outside of the boundaries of the original specification occurs, and this is excellent product proofing,” he says. “Patches and suggestions are received globally. PLD’s development capabilities through this external support is greatly extended. In return, Xamime becomes a more known product, with a stronger, tested core, providing more sales, which enables PLD to work on more projects for Open Source.”

If there are any growing pains, it is in learning that some customers are reluctant to spend on what is necessary. Programming is logical; business perceptions are not. “One customer had been spending upwards of $250 a week cleaning machines on which viruses had entered. Secondary costs were far higher, in downtime and lost data. Ironically, it took a lot of convincing to get them to buy Xamime, which would cost them $1,000. That was nearly eight months ago. Since then, they have only had a single ‘virused’ workstation, and have directly saved $7,000.”

Another customer achieved savings through reduced line usage because of being able to block out nonessential attachments. Yet selling is sometimes difficult, even in this eager market. “For reasons that defy logic, decision makers are reluctant to spend money upfront in order to gain savings, no matter how obvious or proven.”