Comment by VLM

The key business mistake is trying to have too large of a company or having the wrong organization structure.

Consider how a SCM like git or bitkeeper is more complicated than a wrapper for LXC. For some odd reason Docker has almost 100x as many employees as bitkeeper. They're just too big. It would be like trying to create a startup of "/bin/ls as a service" with at least 50 employees and 49 of them would not be able to generate enough revenue to break even much less turn into a billion dollar "LSaaS" tech unicorn. There's not enough meat for the pack. FreeBSD has jails and all of FreeBSD (not just jails, the whole thing) is about a third the size of Docker... hmm.

An alternative to having an appropriate sized company would be giving up on profit. There probably is no way to make "real" money doing what Docker is doing, not "real" in the context of 1500+ employees. It would be very real if they could get their current revenue with 20 employees, but ... That is not bad, that just means they're better off as an IRS 501(c)(3) approved charity rather than trying to become a startup unicorn. Large organizations like the Red Cross are a valuable and important addition to the community, despite not being a successful tech unicorn. They got a lot of money from In-Q-Tel so they're already kind of taxpayer funded (via CIA) so going outright charity wouldn't be a stretch.

A good business analogy for Docker would be the small day care my kids attended. They were based in a small church building which permanently limited the size of their state license. It doesn't matter if they hire 3 caregivers or 1500, they only have space for an 8 kid license and revenue will never exceed 8 kids. They can hire 1500 caregivers using VC funds but they'll never get more than 8 kids of revenue. They are not working in a field where they can scale to a billion dollars of revenue. There's nothing "wrong" about a daycare that rents a room of a church, employs a couple "early childhood education major" college grads right around minimum wage, and the kids have fun. Thats Docker. There is perhaps a bigger third problem that they probably sold themselves to investors as an unstoppable money printing machine. Whoops. Nobody makes that mistake with the local church daycare. To some extent lack of due diligence is the fault of the investors. We'd never have had docker without their ... selfless financial donation.