In an era where many dotcoms are failing, eXtropia has been running as a profitable open-source company for the last year in Singapore without VC funding. We literally give our software away. How did we become profitable using this model? The ideas behind the "new economy" play a large part of how we became profitable with such an innovative model. However, the "new economy" isn't everything. It also took some "old economy" practices to make sure we were also following tested business practices. We'll talk about some of the tension between old and new economy and how a balance helped us reach a happy medium. Simplified calculations (eg cashflow) and graphs will be included show risk analysis and where things could have gone wrong in our business model will also be discussed.

Originally presented at ApacheCon April 2001.

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