Talend Shows That Open Source Success is Not Just About Low Price

Having raised 28m in venture money and being designated a visionary by Gartner, Talend says open source does not have be the cheapest, just the best

Talend is an open source data integration company that is a poster child for successful open source business models. In just a few short years they have risen to be one of the up and coming stars in a 13b dollar market. In spite of the open source character of their product the key to their success is not being a low price choice either.

This has not been lost on the VC community, who have invested in Talend to the tune of 28m dollars. Nor has it been lost on Gartner who have placed Talend in the highly desirable visionary quadrant in their most recent Magic Quadrant for data integration.

I recently spoke with Yves de Montcheuil, VP of Marketing for Talend. Over the years Talend has seen over 8,000,000 downloads and 300,000 to 400,000 users. The company has over 1,000 paying customers. Talend has several offices here in the US and several in Europe, with Paris as the HQ. They also have a large development shop in Bejing as well. Talend is truly a global powerhouse.

According to de Montcheuil, they key to Talend has been staying at the cutting edge of the integration market. In fact, Yves likes to say that Talend has moved beyond mere data integration and is more about data quality and master data management. 

The terms used by Yves de Montcheuil are not just semantics either. By staying out ahead of the pack, Talend has been able to charge a premium for its best-of-breed product. Rising above commodity offerings has allowed Talend to escape an all too often trap for commercial open source companies. That is having to compete on price alone.

Too many IT execs think that because a product or service is based on an open source base, it should be if not free, close to it. In the case of Talend, they are offering open core products. Because the pay for modules and products are best-of-breed they have been able to charge premium prices.

Talend is a company that is doing well in the enterprise market with a commercial open source/open core strategy. The fact that they don't feel they compete on price and still be successful shows that all in open source does not have to be free to succeed.

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