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Wednesday, July 11, 2007

How the BIND company makes money

The following quotes, from a wide variety of sources, demonstrate that the BIND company's primary money-making strategy is to sell security patches and other essential fixes for its buggy software. Of course, that strategy would break down if the software actually worked.
To understand some of these quotes, you have to know that there are several corporate shells inside the BIND company. The two most visible shells are ``Nominum'' and the ``Internet Software Consortium'' (ISC). BIND company employees like to pretend that these are separate companies (see, for example, the Mayer quotes below), but let's look at the facts:
The Internet Software Consortium, founded by Paul Vixie, formerly directed by David Conrad, is located at 950 Charter Street in Redwood City.
Nominum, Inc., founded and directed by David Conrad, advised and formerly directed by Paul Vixie, is located at---surprise!---950 Charter Street in Redwood City.
Paul Vixie*, on nanog: ``We're commercializing BIND since I'm no longer able to fund it out of my own pocket (my pocket is now empty) and we ended up not getting the kind of donations we needed as a nonprofit. While I'm committed to keeping a freely redistributable version and to shipping source code, I've got to be realistic about my mortgage payment and the lack of speed and quality of BIND's evolution when it can only get worked on by volunteers.''
`The organization came in for some criticism in reports yesterday over the way it handled the latest vulnerabilities discovered in BIND. After an advisory was issued, the ISC made efforts to verify the identity of people requesting the patch before sending it. At the same time, it also took the opportunity to pitch its membership services, prompting some BIND users to claim the company was operating a "cash for patches" scheme. ... For a year's membership, corporations with over $2bn annual revenue must pay $50,000, and those below $2bn must pay $5,000. Non-profits pay $1,000 and individuals a minimum of $100. To get the bonus service that sends security vulnerability warnings 10 days in advance of public disclosure, members must pay an extra 20% of their dues.''
``I have no financial interests in BIND, though I see no need to discuss my financial interests in anything, least of all to you. If I make use of BIND in the course of my employment or in pursuance of new employment, do you consider that a financial interest?'' (Still no mention of his special relationship to the BIND company. My response: ``Is your pretense of independence part of the BIND company's strategy for packing this standards committee, or have other BIND company people been quietly warning you that you should fess up?'')

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