Mozilla’s reliance on Google is increasing: 90% of 2012 revenue
thenextweb.com
thenextweb.com
Not sure what's the state now but a few years ago the CEO was being paid ~400K/yr to run Mozilla Corp. For that kind of money, one would expect that Mozilla would have more diverse revenue than being a one-trick pony.
http://arstechnica.com/information-technology/2013/11/intern...
http://www.w3schools.com/browsers/browsers_stats.asp
And there's also Google trends.
I tend to see that too. its pretty evil too. get flash update? chrome bundled at random. navigate google sites? site may not display correctly unless you download this "link to chrome"
and so and so forth. for many users its confusing and they don't know how it happened or how to go back.
$400k is what one-trick ponies like doctors and lawyers and traditional industry local small business owners earn.
Or a little under twice that of the Prime Minister of the United Kingdom ( pop. 60 million ), when summing his MP and Government jobs.
The combined ministerial and parliamentary salary of the Prime Minister is £142,500 at April 2013
I'm fairly confident in saying that David Cameron puts in considerably more effort than the CEO of Mozilla. I really don't see how anyone can justify $400k for such a job.
...and the President of the United States [1]...
> and traditional industry local small business owners earn.
Chrome probably got there the same way Firefox got there - a well meaning individual (you, in the case of Firefox) installed it and told them to use it because it is "better".
I would not exactly call this hypothetical person completely independent. Sure, they can go off and find somebody else to rely on anytime they want, but they are currently relying on one company in particular.
Well, even if he could shop around for another job, relying on MS like that means a sudden firing combined with an illness/mortage and/or worsening job market conditions can seriously hurt him.
The concern from people is always about too much power (control) in the hands of a select few.
What choices will they make?
Will they be the best choices?
How will we know?
How much transparency will there be?
Some of these might not apply directly to the open source world, but Google is at the forefront of decisions on the internet.
It doesn't have to be overt, I doubt Mozilla makes many decisions by asking themselves, "will this make Google happy or unhappy?"
But consider that Mozilla knows what Microsoft and Yahoo's top bids were. Their ability to switch from one funder to another is dependent on how high those bids were.
With Mozilla, the supply is one item, the default search engine for the search bar, something which has high demand. That means if Google were to become less interested in paying for the search bar, Bing would be waiting at the gates to do so. They could lose money if that were to happen, given that Google was the highest bidder, but that in no way makes them beholden to Google.
I wouldn't be looking forward to the next set of negotiations if I had Microsoft and Yahoo as my fallback positions.
Yet, I think you'd be right to question the independence of a politician who got 90% of their funding from Google. Maybe it is different because people interested in entering politics have less integrity and produce nothing of value so they are more in thrall to their biggest customer. ;-)
Maybe it is more like the academic projects I've worked on. 100% of the money is from the US Government but none of us are patriotic in the least. We just care about doing the research.
Or how about the US government, which gets most of its funding from US tax payers and China and never seems to do anything that pleases either group.
Or children that get all of their basic needs met by their parents and still grow up to rebel and hate them.
I think politicians are just a special case in being particularly worse than the average human being in terms of ethics, morality and intelligence. :-)
Mozilla is a non-profit foundation that sells its search box to fund a corporation that develops a free web browser.
They don't compete.
So more accurate reasoning is "Search advertising is the best, Mozilla drives a lot of traffic, any search engine would love to have 'control' over Mozilla's choice of default search provider and how that works to insure they get the traffic from Mozilla customers."
So no, Mozilla doesn't need a 'backup' plan unless Bing goes away.
That should make Mozilla feel uncomfortable whenever their agreement with Google is up for extension.
On the plus side, they know they can get money elsewhere if Google were to drop out; they could jump to the Bing camp. That's about their only alternative, though.
Also, their ability to get a good new contract depends heavily on their market share.
Imagine that that software engineer at Microsoft was becoming less productive and knew that Microsoft was hiring young engineers and that there was only one other company he could get a job, and that that company was also hiring young engineers. That should make him worried.
https://static.mozilla.com/moco/en-US/pdf/Mozilla_Audited_Fi...
"Concentrations of Risk: Mozilla entered into a contract with a search engine provider for royalties which expires November 2014. The previous contract term expired in November 2011. Approximately 90% and 85% of royalty revenue for 2012 and 2011, respectively, was derived from this contract. The receivable from this search engine provider represented 69% and 77% of the December 31, 2012 and 2011 outstanding receivables, respectively."
I wouldn't worry too much about it. The fact that Google was forced to up its bid during the last round of contract negotiations means that Mozilla's value to Google has only increased, despite Chrome's presence on the browser scene.
Are there any "danger, danger" arguments that directly address the amount Google spends on Firefox in relation to the market share it gains in return? This TNW article seems keen to point out that Firefox is wearing a shiny pair of handcuffs, but conveniently leaves out the other half of the equation.
Alternative revenue models are needed. Unfortunately, reducing costs is probably also necessary.
Their current revenue model isn't "Google", it's "the search box on Firefox". Now, you can debate whether it is sensible to rely on the search box, but it isn't tied to Google. Microsoft or Yahoo would probably love to get there instead.
Mozilla is pumping out mostly user facing open source software, which will probably attract less money than, say, Red Hat.
Also, it's not that no company except Google is backing them. It's that they get a huge amount of money from their search box - currently paid by Google. Microsoft might well be happy to become the default and pay just as much.
Edit 3: Fixed link for international readers
Google does consider the search engine placement valuable but it is probably also funding Mozilla as a hedge against anti-trust lawsuits.
I wish Mozilla would stick to its principles and switch the default to a privacy conscious search engine like DuckDuckGo and give it a much needed boost in keyword relevance data.
Calling them the "tin hat" crowd would suggest that they are delusion when, in fact, the U.S. government has repeatedly admitted that they are spying everybody and they don't understand why anyone should complain.
The corporation's charter is to support the Foundation's goals through market activities not allowed for nonprofits, not to generate profit as a traditional joint-stock corporation.
Which of Mozilla's principles (rather than yours) would this be "sticking with"?
If I were to brainstorm, I would recommend that Mozilla folks start go after enterprise market; almost every bank I have consulted for uses awful and poorly made GUI application using Swing or C# and most are struggling with Mobile. Since Mozilla is crossplatform and secure , I do think there is opportunity to offer training and support for customizing and hardening Firefox for enterprise business applications.
RedHat, Jboss , SpringFramework folks are doing remarkably well in the enterprise market though they had roots in free and opensource software movement.
However, this is far from the case for Mozilla. Google pays Mozilla in order to be the DEFAULT search engine (which is valuable on the theory of consumer inertia). The default position is a limited commodity; there is only one default position and, therefore, by doing business with Google they are passing on other business. If Google left then Mozilla would be able to sell that default position to someone else (probably Yahoo or Microsoft) and would be able to replace most of that revenue with comparable revenue very quickly.
I would argue Google is in the more difficult position here. Google has a some (not a lot) concentration of their acquired traffic from Mozilla (I think ~10%), and that is not a limited commodity. If there were other comparable traffic acquisition opportunities available, Google would pursue them. Google is not necessarily passing on other business because of their business with Mozilla (while, as explained above, Mozilla is passing on other business because of their Google deal). So presumably if Mozilla and Google part ways, that Google business (revenue, profit etc.) would be lost (at least for now) and take some time / effort to replace. While Mozilla’s power over Google is definitely small, I would say with certainty Mozilla should not be concerned about their Google concentration in this scenario.
Mozilla has diversified it's income stream with FirefoxOS and it's entry into the mobile market. Couldn't some of the royalties come from Telephonica and other mobile operators ?
[1]: https://static.mozilla.com/moco/en-US/pdf/Mozilla_Audited_Fi...
It is only logical for them to invest in spots they can gain this data from.
I wonder if Mozilla could survive solely on funds from their users or if it's two different worlds.
So while Firefox would likely survive, it'd imagine it would look much more like the post-Netscape, pre-MFL years. No more work on stuff like Rust, Servo, asm.js, things like Thunderbird would atrophy...
That said, I'm not sold on Mozilla needing Google; I'm sure they could swing a deal with Bing. What strange bedfellows that'd make.
It just seems like they embody the opposite of Mozilla organization's ideals.
There are many out there who use their products on a daily basis.
Apple can pick and choose their deals. If Apple decided to give Microsoft the search box for free to spite Google they could do it in a second.
Mozilla is completely dependent on monetizing the search box. I think at $100 million per year, Microsoft was interested in bidding for Mozilla's search box. At $300 million, it was untenable.