Open-source companies to watch

Company name: Collaborative Software Initiative

Founded: February 2007

Location: Portland, Oregon

What does the company offer? CSI is developing applications collaboratively with groups of companies that normally compete against each other, such as banks. The plan is to create essential but noncompetitive software tools that can be used across an industry, and offer code maintenance and support. The first application, expected to be released in the fall, will be an online questionnaire that helps banks comply with security regulations.

Why is it worth watching? CSI's open-source development model will allow companies to save money by more efficiently creating applications that are needed by competitors but don't create a competitive advantage. "As we move toward this idea that a lot of ... what we're looking for in IT is more similar than it is different, and we start to find commonality around things like vertical customization, it makes sense to try to drive down the costs by cooperating with other folks trying to solve the same problem," says Forrester analyst Rob Koplowitz.

How did the company get its start? Stuart Cohen, former CEO of the Open Source Development Labs, founded CSI after several large banks and insurance companies approached him and said they wanted to collaborate on open-source applications.

How did the company get its name? The words "collaborative" and "software" have obvious links to the company's development model. Cohen chose the word "initiative" instead of "Company" or "Inc." to indicate a new way of doing business.

CEO and background: Cohen most recently spent four years as CEO of the Open Source Development Labs, which became the Linux Foundation after a merger. Cohen worked for IBM for 17 years in sales, marketing and brand management, and later held positions at RadiSys and InFocus.

Funding: US$1 million from OVP Venture Partners.

Who will use the products? The banks and insurance companies that approached Cohen include Bank of America, Morgan Stanley, and MetLife. Cohen has also talked to numerous government agencies about developing applications.

Company name: Mindquarry

Founded: July 2006

Location: Potsdam, Germany

What does the company offer? Collaboration software known as Mindquarry DO, which was released in February and includes file sharing, wiki editing and task management. Mindquarry recently announced a software-as-a-service product and an enterprise-class software package including support.

Why is it worth watching? Red Herring named Mindquarry one of the top 100 most innovative private companies in Europe this year, saying it has ambitious plans to compete with Microsoft's Sharepoint Server and IBM's Lotus Connections.

Mindquarry's "open source software package ... allows multiple users to simultaneously edit documents or collaborate through instant messaging and email," Red Herring notes.