2008-09-08 14:07:10 - With a 583% growth in new subscription sales and a renewal rate above 90% for the first half of 2008, eZ Systems has proven its Enterprise Open Source business model with two straight profitable quarters.

Source: ez.no/company/news

Based on the freely downloadable Content Management System eZ Publish, eZ's business model focuses on yearly subscriptions that include support, maintenance, and guarantees, sold through eZ itself and third-party eZ Partners.

eZ's profitability comes after 8 years and more than 10 million USD of investments, all going towards building the scalable Open Source business model.

eZ's unique

partner network and focus on the media vertical has paid off. More than 55% of the subscription sales have come from eZ Partners, which number more than 230 companies worldwide. eZ Publish has attracted leading media groups, such as Gruner + Jahr, SanomaWSOY, Lagardère and
Schibstedt. Additionally, eZ has seen strong momentum from the finance industry, with organizations such as Société Générale, Banque Populaire and the Oslo Stock Exchange discovering the power and flexibility of eZ Publish.

"I will let the numbers speak for themselves", says eZ's CEO Aleksander Farstad. "We have shown that it is possible to build a global scalable software business based on Open Source. And this is just the beginning."

Looking ahead, eZ sees even faster growth. With the scalable, recurring subscription model, eZ expects to grow rapidly while maintaining profitability and positive cash flow. Development on eZ Publish will continue to add more relevant and robust features as the content management market evolves.

About eZ Publish
eZ Publish is an award-winning, enterprise-grade Open Source Content Management System and development framework with functionality for web publishing, media portals, intranets, e-commerce and extranets. eZ Publish helps all kinds of organizations - including multinational corporations, humanitarian organizations and educational institutions - succeed at sharing their information.

About eZ Systems
Founded in 1999, eZ Systems is the world's largest Open Source Content Management software company with offices in Norway, Denmark, Germany, Ukraine, Belgium, France and North America. With customers such as the United States Navy, Oslo University, Telemark University, Swissfirst, Massachusetts Insitute of Technology, Elle and Vogue, eZ Systems is the creator of eZ Publish, an award winning Open Source Content Management System with more 2 million downloads, more than 150,000 installations and registered users in more than 130 countries. The eZ philosophy of openness and information sharing is still the basic guideline for the company and the eZ Ecosystem.