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Linux Foundation decreased Linux spending to 3.2% in 2022.
Down from the, already absurd, 3.4% in 2021.
August 09, 2023
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On December 8th, 2022, the Linux Foundation released their annual report for 2022.

I’m not going to sugar coat this… it is absolutely ridiculous.

The highlight? Funding for the Linux kernel, in 2022, dropped to a measly 3.2% of the foundation’s total revenue of $243 Million dollars.

Down from the — already absurdly low — 3.4% from 2021.

Considering the name of the foundation… that is, needless to say, highly amusing. Or concerning. Possibly infuriating. Likely all three.

Let’s dive into the details and try to figure out why this is happening.

Seriously. Expenditures on Linux drop to 3.2%

Let’s dive into this deeper and try to get an understanding of exactly what is happening here… because that number is just so, dramatically low.

While The Linux Foundation keeps fairly tight-lipped about the details — and they haven’t published their IRS 990 forms for the last two years (which would provide us additional details) — they do provide some high level percentages for us to work from.

Source: Linux Foundation 2022 Annual Report

That chart on the right. The expenditures. Let’s zero in on those numbers and break it down into a bar chart to better visualize things.

Holy smokes.

A few things you’ll immediately notice:

  • Linux is almost the smallest category that the “Linux Foundation” spends money on.

  • “Corporate Operations” receives over twice the funding that “Linux” does.

  • And non-Linux projects? Those receive nearly twenty times the funding of Linux. Twenty! 20x!

The Linux Foundation brought in over $243 Million USD in 2022. Which means the total amount put towards Linux was, according to The Linux Foundation, roughly $7.7 Million (3.2%).

For comparison, the Foundation spent roughly $18 Million on “Corporate Operations” and $144 Million on non-Linux projects.

It’s almost hard to wrap your head around, isn’t it? Here’s another chart that shows Linux Foundation spending.

This is, needless to say, wild. And it calls up a few questions, namely:

  • What, exactly, is all that money being spent on?

  • And… why?

  • Who is making the decision to spend so much money on things that are not Linux?

Let’s see what we can find out.

Where is that money going?

Again, the Linux Foundation provides very few specific details. And hasn’t provided a publicly available form 990 -- an IRS filing required for all tax exempt organizations -- for the last two years (once they do, the Lunduke Journal of Technology will investigate the contents).

Instead, the Linux Foundation provides a generalized breakdown of project types and percentages in their annual report (which, despite being over 130 pages long… is light on actual numbers).

Source: Linux Foundation 2022 Annual Report

Highlights:

  • The Linux Foundation invests more money into “Blockchain” than “Linux”. By a lot (3.7% vs 2.3% of total project spending).

  • They also invest more — a lot more — in “Compliance Best Practices”, “AI”, “IoT”, and “Cloud”.

Repeat: “Blockchain” related projects receive nearly twice the funding of “Linux”… in the Linux Foundation.

I mean… What?!

Now, in defense of The Linux Foundation, the majority of that project funding is going towards open source software of one type or another. At least tangentially. Just not… you know… Linux.

Getting out of the Linux business

What are a few of the specific projects receiving that funding? Here’s four that have an entirely unknown amount of funding:

This is worth repeating: We do not have detailed financial information on these sub-foundations. They don’t provide individual annual reports for each (as they are all under the “Linux Foundation” umbrella) and there doesn’t appear to be any source of documentation, publicly available, to figure out those details.

The fact is, some of these projects may receive many times what the Linux kernel receives. Others may receive a tiny fraction of that amount. We simply don’t have that information.

And, without the Linux Foundation having publicly available 990 forms for 2022 (which are required for organizations like the Linux Foundation)… those vague, percentage breakdowns, by category, are the best bits of information we have available.

Which, honestly, is troubling.

But, one thing is clear, the Linux Foundation is investing — heavily — in almost any type of software… as long as it is not their core business... Linux.

If we were looking at any other company — that observation, combined with the decreasing percentage of revenue spent on their core product — would lead us to the obvious conclusion that they were getting out of their core business.

Which means… it looks like the Linux Foundation is preparing to get out of the “Linux” business.

I know. I know. Don’t shoot me.

I’m just pointing at what’s happening and saying out loud what we’re all thinking.

Where does that money come from?

Great. But… why is this happening? Why is so little funding actually making it to Linux? Why are they migrating — almost entirely — towards other businesses?

In an attempt to answer that, let’s look at where the money comes from — let’s figure out who actually controls the purse-strings.

According to the annual report, the largest block of income (44.5%) comes from membership in the Linux Foundation itself. And we know that becoming a “Platinum Member” of The Linux Foundation costs $500,000 per year.

So who, exactly, are those Platinum Members, you ask? We’ve got a handy graphic just for that!

MicrosoftOracleMeta (Facebook). IntelHuaweiTencent.

Drop down to the Gold level (which runs $100,000 per year) and you’ve got firms like GoogleBlackRockCardanoAlibabaWeBankRefinitivBaidu, and many others.

Those memberships add up. Quickly. These are the companies that pay for the salary of those at The Linux Foundation.

Not only do those companies all have the ear of Linux Foundation executives (if someone gives you half a million dollars every year… you certainly pick up the phone when they call)… but those Platinum Members also get a seat on the Linux Foundation Board of Directors.

They pay... so they get to drive.

This is the current Board:

Take note of the companies that each Board Member represents and works for. (Also worth noting that the Board Chair, Nithya Ruff, works for Amazon… though that is not disclosed in that graphic.)

A lot of companies.  And, at least some of those companies… would rather not see Linux succeed.

Note: I, Lunduke, know many of these people. I’ve broken bread with a rather large portion of them. Some of them I rather quite like personally. But all of them — every single one — has an agenda. Someone gives them a paycheck. And that’s worth noting.

And these are the people who — to a significant degree — determine which projects and sub foundations the Linux Foundation will create, promote, and fund. And which it won’t.

While we do not have publicly published meeting minutes — Oh!  What we wouldn’t give to have been a fly on the wall of some of those meetings! — looking at the individuals (and companies they represent) on the board… we can clearly see why “Linux” funding is not only a small portion of what The Linux Foundation does… but it’s shrinking, year-on-year.

Without published minutes of the Linux Foundation board, and publicly available 990 forms for 2022, we are left in a position where the best we can do is piece together what little information is public… and draw our own conclusions.

And that conclusion is this: Many Mega Corporations have purchased influence in the Linux Foundation. And, as a result, the Linux Foundation is now transitioning away from Linux.

Pessimistic and cynical?  For sure.  But also rather obvious.  In an undeniable way.

What is the future of Linux within The Linux Foundation?

Knowing what we know about The Linux Foundation — which is a whole lot less than we should know — what does the future of Linux support look like from the foundation?

Will we continue to see “Linux” becoming a smaller and smaller part of the overall Linux Foundation business?

The answer to that question seems to be a resounding: “Signs point to yes”.

In fact, I would not be surprised if they changed their foundation name to something without “Linux” in it… very soon.

If the Linux Foundation continues their current approach of establishing new sub-foundations (all focused on non-Linux activities and businesses)… My prediction is that 2023 will see growth in Linux Foundation total revenue, and another drop in Linux Kernel support — either in terms of total dollars or overall percentage. Possibly below 3%.

Note: The Lunduke Journal of Technology has reached out to the Linux Foundation with questions on these, and other, topics — and a request for comment. No response has been provided. Which is pretty par-for-the-course with stories concerning the Linux Foundation over the last several years.

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Linux Foundation Drops Linux Spending to Historic Lows in 2024
Plus: Skyrocketing revenue, and no mention of "Diversity" or "Climate Change".

The Linux Foundation, earlier today, released their 2024 Annual Report.  And, hoo boy, is it a doozy.

The short-short version: Massive increase in revenue (now close to $300 Million Dollars), with spending on Linux continuing to drop to historically low numbers.

And, in a dramatic departure from previous years, almost zero discussion of politically charged topics (such as Diversity, Equity, Inclusion, & Climate Change).

Let's start with the numbers.

 

Skyrocketing Revenue

 

First and foremost, it's worth pointing out that -- as of this year -- revenue for The Linux Foundation is closing in on 1/3rd of a Billion Dollars annually.

 

While The Linux Foundation may technically be a "non profit", those numbers would make many "for profit" corporations blush.  Massive, steady income growth.

Where does the largest bulk of that revenue come from?  Corporate "membership" dues, naturally.  To the tune of over $125 Million USD.

 

With the highest paying corporate members being the likes of Meta, Microsoft, Oracle, Samsun, Red Hat (IBM), Huawei, and the like.

 

 

These corporations pay a premium to have a seat on The Linux Foundation Board of Directors.  Which, it should be pointed out, consists of over 70% GPL violators.

 

 

Spending on Linux

 

One of the peculiar facts about The Linux Foundation is how surprisingly little of their income they spend on... Linux.

And, perhaps even more peculiar still, is the fact that the percentage of their revenue spent on Linux appears to decrease every year.

In 2021, The Linux Foundation spent roughly 3.4% of their revenue on their namesake project.  As of 2024... that number appears to be down to 2.3%.

 

 

And this isn't simply a matter of overall percentages going down (while revenue rises).  Spending on the Linux Kernel is down, year on year, in terms of actual US Dollars as well.

 

 

In fact, the amount currently spent on "Corporate Operations" for The Linux Foundation... is roughly 3 times that of what is spent on the Linux kernel.

As time goes on -- and spending numbers become finalized -- we are gaining an increasingly clear picture of the spending priorities of The Linux Foundation.

 

No Diversity in 2024?

 

In the previous annual report (2023), "Diversity, Equity, & Inclusion" were a critical component.

In the 2023 report:

  • "Diversity" was mentioned 34 times
  • "Inclusion" 17 times.
  • With the general "DEI" topic -- including "LGBTQ" issues -- being a critical component throughout the report.  Page after page of DEI.

This year, in the 2024 report, the words "Diversity", "Equity", and "Inclusion" are never used.  Not once.

Well.  Once.  Barely.  On the second to the last page, in a footnote, you find the following statement: "75% of [travel] funding went to diverse community members."  That, right there is the sum total of discussion around "diversity".

In fact, the "LGBT" acronym is also never used in the most recent report (another significant change from previous years).

This appears to mark a dramatic shift, away from "DEI", for The Linux Foundation.  At least in terms of messaging.

 

No Climate Change, Either?

 

The 2024 Linux Foundation annual report also contains absolutely no reference to "Climate Change".

"Wait, why would the Linux Foundation be talking about Climate Change," you ask?

Well.  Last year, in 2023, the annual report was filled to the brim with Climate Change -- with 37 distinct references and over 10 pages focused on the topic.

That focus appears to no longer be a priority for The Linux Foundation.

 

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One of the most prominent new topics of the 2024 report was "the right to fork".  Something previous annual reports stayed clear of almost entirely.

 

“The right to fork open source code is at the core of open source licensing. All open source licenses grant the right to fork their code, that is to start a new development effort using an existing code as its base. Thus, code forking represents the single greatest tool available for guaranteeing sustainability in open source software.

 

In addition to bolstering program sustainability, code forking directly affects the governance of open source initiatives. Forking, and even the mere possibility of forking code, affects the governance and sustainability of open source initiatives on three distinct levels: software, community, and ecosystem.”

 

This is particularly interesting, given the stated intention for Russia to hard-fork Linux over the recent ban of Russian programmers from being official kernel maintainers.

 

Other Oddities

 

A few other facts which are worth noting from the 2024 Annual Report:

  • Neither the Executive Director, nor the Board Chair -- in their several pages long opening messages -- mentions the Linux Kernel.  Nor desktop, server, or mobile Linux.  Strange, right?
  • The 2024 Annual Report is only 45 pages long.  Compared to the 2023 report, which clocks in at 160 pages.
  • There is absolutely no mention of the mass banning of Russian developers during 2024.
  • Nor of the various other developers banned from the Linux Kernel this year.

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