Spikesource Mines Rich Vein in Opensource Software

(MoneyWatch)  As corporations start adopting open-source applications, it's creating some new niches for companies to mine. One such company is Spikesource, a Redwood City, Calif., startup with backing from Kleiner Perkins VCs and strong alliances with established giants like Intel and Microsoft.

Spikesource's niche is automated platforms for assembling, testing, packaging and updating software. Open-source applications are patchy by nature, and need a lot of testing by customers and developers to evolve and work out bugs, version mismatches etc. On O'Reilly Network, Spikesource co-founder Murugan Pal outlined the company's approach in detail.

The company's management team is led by Kim Polese, founder of Marimba software back in the 90s, which was sold to BMC Software. Its chairman and co-founder is Ray Lane, former Oracle president and current Kleiner partner. Also on the board is Kleiner heavyweight Bill Joy.

On Friday, Intel said it invested $10 million in Spikesource, leading a round of venture investment. Intel, like Microsoft, is using the company to certify applications for production quality. The Microsoft alliance caught the interest of a blogger on SeekingAlpha, who explained its significance.

Despite growing Linux deployments, Windows Server remains quite popular for running open source applications. SugarCRM, the fast-growing open source application provider, is quick to note that many of its business developments occur on Windows Server. And Microsoft itself has sponsored SugarCRM's conferences, in order to stay in front of open source crowds.

But Microsoft isn't stopping there. The company is working with SpikeSource to ensure open source applications work with Windows Server 2008. SpikeSource has so far certified five PHP applications for Microsoft's new server operating system, according to SpikeSource's Web site