Venture capital firms have been pouring money into open source technologies, and now folks are saying it could be a bubble about to burst. Is this money sitting on the table, looking for someplace to go, or a sign of things to come? I think it is a little of both.
Venture capital “overhang” was hitting new highs at about the same time the open source fervor was gaining momentum. So its natural that investors would take a peek. One only has to look as far as SourceForge to see there is a lot going on.
Whether all those projects can be turned into profit generating opportunities is another matter, and I believe it will all boil down to application execution. While a lot of the investments are centered on giving away software, then making money from support, some of the technologies will simply not gain ground in that manner. That is the risk an investor takes. However, someone may USE that technology to build a valuable product or service, and that is where I think the value will wind up being generated over the long haul. How the original technology developers insert themselves into that mix is what remains to be seen.
Then again, what the hell do I know?