I sold MDB at 103 before earnings. My confidence was shaken by their problems (fiasco)with their licensing.
I bought half or less back last night at 104. So far I am up.
However, I still have a dent in my confidence in the management.
The question for the board is this:
How do you parse out the non number yet important news, like the management can’t decide on something as fundamental as the licensing for their product, and blow out earnings numbers?
I have seen Saul sell based on these qualitive factors, i.e. Hubspot.
Before we move on to our 2020 priorities, I wanted to provide an update on the licensing change we announced last October with respect to MongoDB Community Server, the free to download version of our database.
It is very important for investors to understand that since we own all our IP, unlike other open source companies, we have full control over how we license our software. As big believers in open source, we introduced the Server Side Public License or SSPL to address the risk facing companies wanting to make significant investments in open source in the modern Cloudera.
In the months since we launched SSPL, it has become clear that many others in the open source community share our concern. However, there’s not currently a consensus around how to address the issue of open source strip mining. In lack of this consensus, we recently decided to withdraw the SSPL from the OSI license approval process.
We have decided to focus our efforts on working with other stakeholders in the open source and broader tech community to either refine the SSPL or develop an alternative license that addresses these issues. To be very clear, current and future versions of MongoDB Community Server including patch releases to prior versions will continue to be offered under SSPL, until there’s a broadly accepted alternative license that is designed for the Cloudera.
It’s nothing to do with indecision, rather trying to protect the company from some free loading cloud providers.
I sold MDB at 103 before earnings. My confidence was shaken by their problems (fiasco)with their licensing.
I bought half or less back last night at 104. So far I am up.
However, I still have a dent in my confidence in the management.
The question for the board is this:
How do you parse out the non number yet important news, like the management can’t decide on something as fundamental as the licensing for their product, and blow out earnings numbers?
At first I thought the same as you but after actually reading it, they didn’t make any change at all as to how the licensed their product. They just withdraw the application to be open sourced. But the main Ted the same model that people are paying for, if anything, they must not be too worried that Red Hat or others dropped them as part of their system. But as I understand it, you still can download it free, it just doesn’t come installed as part of the overall package.
What do you think they changed in their licensing model for their product? As far as I understood it, they didn’t change anything at all
management can’t decide on something as fundamental as the licensing for their product
They changed the license once a while back to make it more restrictive so that people like Amazon couldn’t make money off of posting without given anything to MongoDB. The recent move was simply to withdraw their attempt to get this license approved as open source by OSI. The license itself did not change. This hardly seems to be a sign of weakness.
How do you parse out the non number yet important news, like the management can’t decide on something as fundamental as the licensing for their product, and blow out earnings numbers?
You are barking up the wrong tree, licences that give stuff way for free don’t make money. Hosting Atlas makes money, that your tree! 400% y/y growth, where else can you get that? The license is a necessity to stop AWS and other cloud providers from sealing their Atlas customers. The copyleft issue reminds me of Comrade Stalin. When he was going to invade some country or other (Poland?) one of his generals said: “??? ???, the Vatican won’t like it.” Stalin asked: “How many divisions does the Vatican have?” “The Vatican has no divisions.” “Go ahead with the operation.”
Note that Mongo didn’t back down on the license, they just stopped sucking up to the Copyleft Vatican. They feel they are in a strong enough position to do so.
I wonder when Amazon will eventually give something back for free…
You mean in addition to lowering prices on millions of items for everyone?
Or in addition to providing a free price check website that you can use in an instant while shopping at any physical store with instant links to similar products?
Department stores albiet in this case online always lower prices and give stuff for free.
All department stores want your custom. Price check websites are all over the place and free.
I’m refering to when Amazon will eventually contribute to open source using its massive engineering leverage. At present Amazon is taking ESTC’s and MDB’s creative work and making money from it (competing) without contributing back.
Sorry I will not be discussing this further as it’s OT.