In an analysis report by UK's The Register, indie tech companies who had decided to go public must be wary about this strategy. Arguing the case of UK open-source software biz Alfresco's recent strategic moves, the report said the tech company should not dive into the public offering fad yet.
Alfresco had already challenged the market domination of companies like Microsoft, IBM and EMC's Documentum. From operating as a small fish company under former chief executive John Powell, the company had turned into a 1,300-customer powerhouse in the open-source business with big-time clients like KLM airlines and NHS.
The tech company's new chief executive, American Doug Dennerline, had told the newspaper that they had plans to go public, but not this early. One of his first tasks as a CEO would be tapping venture capital firms for additional funding. "I spent five months not talking to anybody in banking or financial services who want to invest in us. But I have spent the last few months talking to many venture capital firms, and what I'd like to do is raise a round of financing in the next nine months to a year. Take that into consideration to invest and then once that's been put to good use, make the decision whether two to three years from today whether to go pubic," he said.
Although Alfresco generates over USD50 million annualy, the company was poised to earn USD100 million easy in the next few years.
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