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Things that make me go Huh #005?

By John | August 21, 2007

Groundwork breaks 500th customer???

 

GroundWork’s Q3 Milestones Include Record Revenue, a Thriving Channel, and Groundbreaking Product Enhancements

 

Watch how many analyst groups regurgitate this press release. I am sure that most people know how press releases work. The firm that wants to tell a great story hires an expensive PR firm to push the info all over the wires, blogs, and AG’s. Then, all those outlets print their own versions of the same story over and over again. You watch!

 

Here is my spin…

 

The numbers don’t add up. Estimates suggested that Groundwork would close about $5 million for 2006. Giving Groundwork the benefit of the doubt, say that 50% of their revenue is product, bump in some fat, and estimate that it had about 200 customers YE 2006. In fact, Groundwork has basically stated in its own press releases that it had 200 customers at YE 2006. With this current announcement of crossing the 500th customer, Groundwork must have acquired 300 new customers this year. If that is truly its adoption rate, I need to ask some basic questions:

 

  1. If this the true paying customer count and this growth continues until YE 07, Groundwork will be at about $20 million in revenue. If it can go from $5 to $20 million in one year, then everything I have said about it is dead wrong, and IBM, BMC, and HP should stop what they’re doing and try to buy these guys immediately.

  2. Why did Tony Barbagallo leave?

  3. Why are some of Groundwork’s key OSS developers leaving?

  4. Why has it trained only 100 customers if it has 500?

 

Hmmmmmm!

 

Topics: 451, OSS, bmc, caos, esm, gartner, groundwork, groundworkopensource, hp, hyperic, ibm, nagios, netcool, opennms, opensource, tivoli, zabbix, zenoss | 1 Comment »

One Response to “Things that make me go Huh #005?”

  1. People Over Process » links for 2007-08-28 Says:
    August 28th, 2007 at 2:29 am

    [...] Things that make me go Huh #005? – GroundWork (tags: groundwork opensource redmonkclients numbers itmanagement) [...]

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