Thursday, May 23, 2013

Yes, ZaReason accepts BitCoins


We have been following the growth of bitcoins since soon after they started. We followed the tough parts (when Mt. Gox was hacked and many lost funds, something that occurs in all markets), the happy parts (when some nice guy gave our teenage son 50 bitcoins for winning a silly contest), and the funny parts (when people compare the previous value of bitcoins to current value as in the $2,000,000 pizzas).
Public Domain Neutrality
 
Meet the $2 Million Dollar BitCoin Pizza by Katherine Mangu-Ward explains how two pizzas purchased mid-2010, "...are generally acknowledged to be the first tangible goods purchased with bitcoins, the online crypto-currency."


Silliness aside, bitcoins are a common sense next step for currency / merchant processing.

CC-SA ZaReason
Our personal favorite happened a while ago. A young kid, a Bay Area pre-teen, walked into our ZaReason shop in Berkeley and asked, "Can I buy a laptop with bitcoins?" We were about to ask him, "Shouldn't you be in school?" but once he mentioned bitcoins we knew he was probably serious.* He bought a Teo Pro, a subnotebook (I'm typing on a 3+ year old Teo prototype right now). He paid the dollar-to-bitcoin equivalent of the laptop. We transferred the money to USD and everything was properly accounted. 

If you're unfamiliar with bitcoins and do a few searches online you'll find all sorts of bad information. People tend to be scared of things they don't understand (though the less-dsyfunctional, smarter reaction is to be curious).


Bottomline: Currency is a funny thing. We could trade laptops for cookies if we wanted to** (which would require a http://www.irs.gov/taxtopics/tc420.html which is simple enough). Bitcoins are easy enough to turn into USD and despite the way they are typically slandered, they are a potential solution to the many issues that plague the merchant processing industry. Bitcoins are a great solution and the merchant processing industry could see that if they stopped being scared and started being curious.

We are thrilled that there are enough people who buy computers from ZaReason who are smart enough and curious enough (open-minded enough) to ask us if they can use bitcoins. If you want to purchase an item from ZaReason.com (or zareason.co.nz for Australasia) when checking out please select the Purchase Order option and mention in the Notes field that you'd like to pay with bitcoins.

People get their computers using cards, checks, wires, purchase orders, all sorts of payments. Using bitcoins isn't bizarre. It's just different.

--Cathy Malmrose for ZaReason

* Later I tried to hire him but it was too late. He was already working on other projects.

** We don't actually accept cookies as payment. Please don't ask, especially don't ask in the late afternoon when we are hungry for a snack. Thanks.

Friday, January 4, 2013

The Growth Curve of FOSS --> what the best investors know

There hasn't been, and probably never will be, a nuclear bomb on the Timeline of Growth for Free and Open Source Software, no point where an earth-shattering radical shift occurs.
Big Bang / Atom Bomb CCO 1.0 Zdnrp

UEFI's SecureBoot may come close to Hiroshima levels, but my guess is that five years from now, it will have the "ripple equivalent" of the 1991 message to the Minix newsgroup that Linus sent about his "hobby" code.

It started innocently enough, but lead to massive change.

If you look at the timeline for Free and Open Source Software, you see slow, steady, and massive growth, same as anyone would want to see for a company, group, or idea they want to invest in. And by "invest" I am not referring to money. I am referring to invest as, "to use, give, or devote."

This slow and steady growth curve is the nickel-and-dime approach to growing a code base and I am a huge believer in the nickel-and-dime approach. There are three principles good investors understand:

Public Domain by EricFoard
1. Slow, steady growth is where you find the true winners -- ask Warren Buffet.

2. Don't give up. Patience pays. Don't stop supporting it just because it is not growing fast enough. Ask any good gardener.

3. It is the less obvious stock that is often the best pick.

So many of the GNU/Linux distros have been growing in the background, being used and built by Devs, Sys Admins, and generally good people, the geeks behind the scenes, which is the perfect place to grow.

As we have helped ZaReason grow as a hardware builder that supports FOSS, we have been happily surprised at how many of those blips on the map have directly helped people find ZaReason so they can get built-for-FOSS computers. Especially now that UEFI's SecureBoot is in full swing, we are extremely happy to be part of the world that helps get non-locked-down computers to people.

CC-Share Alike Unported 3.0 by Jawed
In fact, I just got a speaking gig at FOSDEM in Brussels, Belgium Feb 2 & 3 where I'll be talking about UEFI's SecureBoot. I'm hoping to cover CoreBoot and many other juicy details. There will be approx 5,000 of the most brilliant hackers at FOSDEM. We hope to see you there!


Dear developers, thank you for your work. Keep chugging along and we will too. Onward and Upward!

Wednesday, September 5, 2012

The Elderly Gentleman and Linux

The ultimate test of a man's conscience may be his willingness to sacrifice something today for future generations whose words of thanks will not be heard. --G. Nelson
*~*~*~

Several months ago I was lucky enough to have an email conversation 52 replies long with the well-loved Cory Doctorow, a sci-fi writer and EFF fellow. In it, he said:

I hope and expect that firms like ZaReason will be critical... but it'll be by articulating a story about value and functionality, not (just) values.

His comments supplied dozens of improvements at ZaReason, but this one: "articulating a story", was the most delightful. For once, I had the, "Hey, I can do that!" reply instead of the, "Please, o, please don't ask me to do more," response. Recording these interactions on The Inner Workings of Linux Hardware is nothing but fun.

*~*~*~

Occasionally I fill for someone at our Berkeley office, answering the phone, helping people who are interested in ZaReason. One day I answered a call that gave me a perspective I wish I could share fully with developers, especially Canonical people.

The man calling had a quaver in his voice, the type of quaver when vocal chords are EOL (end of life). He seemed like a nice elderly gentleman, polite. He asked if I could help him find a computer.

GNU General 1.2 David Gil
He explained how his computer kept crashing, how it was "always getting viruses." He explained how he had spent hours, even days trying to get his computer working. As he explained some of the problems he had experienced, one of which was typing in a product code that was too long, in print too small, mistyped again and again, his voice began to quaver. He began to cry. Not much, but enough to show that this man had been brought to his knees in frustration.

We got him a computer and he now had the virus protection he needed built in. No more humiliation asking family members or friends to clean the viruses off his computer that he inadvertently clicked in a moment when his mind -- probably intelligent and sharp in his younger years -- was now occasionally not as sharp.

I wish there was a way to communicate to developers how important your work is. You bug fix to scratch an itch, for the simple pleasure of bug fixing, but the end result is a happy collection of code that directs the desktop that I got to place on order for an elderly gentleman and ZaReason's shipping people got to ship, all to help minimize difficulties and soften the last years of this man's life.

The man on the phone took time to tell me not just about his frustration but also about how important it was to him that he be able to send emails to his grandkids without it increasing his blood pressure and stress levels. For those supporting FOSS, especially those fine-tuning the code, your work is more important than you know.

Cory Doctorow made it clear I have the values part of "value and functionality" covered. The above story (and many others) are testament to the functionality of a Linux-specific computer and a company built to provide that computer.

Functionality covers many, many areas: this is just one, but it covers a wide enough range of functionality to cover a full spectrum of needs that our customers have, from government labs to small businesses to elderly seniors who need Linux machines.

Developers, you won't hear enough thank yous in your lifetime to compensate for what you have created, not even close, but here is a drop in the bucket:

Thank you! 

Thursday, August 16, 2012

Removing Barriers for Linux Hardware


Since 2007 I've had to send emails saying: "Sorry, we do not ship to your country."

I have squirmed in my seat while typing that reply. Free and Open Source Software doesn't have borders. The hardware shouldn't either.

UltraI
It's impressive that people seek out GNU/Linux hardware builders, but it's even more impressive when people email asking, "Here is my background ___. Could I set up a ZaReason shop in my area?" Antonio, Marcus, Tommi, Richard, and so many others, when you emailed us expressing that you wanted to set up shop, I looked you up. All of the people, approximately 125, who requested this were "viable prospects", smart people who could follow through.

Please know that typing the "no" reply was literally painful. It's a problem I have not been able to solve.

For the first five years of ZaReason's beginning, I asked people in Silicon Valley for advice on global expansion, seemed the obvious source of support. 

There's always a part of the conversation where I have to clarify my personal intentions: "I'm not in it for the money." 

At that moment, I lose their respect.

Occasionally, there's an unkind comment indicating I'm financially clueless. 

Actually I'm financially savvy. I'm just not ruled by it. I have different priorities.

Today, I had lunch with @kiwiseabreeze an experienced lawyer. I said, "I'm not in it for the money," and instead of giving me that look that says, "You hippy twit," instead her eyes glowed, she "got it"; no more trying to explain the impossible. What a breakthrough! For the first time, I was able to express my main objectives without being dismissed.

Relief.

She respectfully heard me out, listened to some of my goals and objectives, mulled them over. It's the first time I've been able to get past that initial first step.

Result: I can see more potential options for The Next Step.

It looks like the wish I've had since 2006 might be possible. My wildest hope:

1. We put together "the packet" that allows ZaReason shops to be set up in other countries by people other than myself.

2. We send out word to those who want Linux hardware in their country. "Find two people who have the time and energy to set up a shop and contact us." 

3. At our Berkeley headquarters, Tony Lam, the CTO, has fully transitioned to doing the core of R&D. Iqbal Haider, the CFO, has fully transitioned to taking care of all ZaReason finance, making sure we're profitable, so Earl & I have been free (since April 2012) to set up other shops. Problem is there are only 2 of us and 20+ countries that could use Linux hardware asap.

Description of shops: 
Early days at Berkeley, CA shop, L-R, Earl, Vincent, Mark Terranova ("Hi Mark!"), Aaron Thomas, Kory
  1. 1,400-1,600 sq ft / 130-150 sq m of ground floor retail / office
  2. two salaried employees: Tech Lead and Office Manager
  3. access to both full-time and plenty of part-time employees, flexible employees, preferably walking distance to research university
  4. near a major port (preferable) to reduce shipping costs

Sidenote: When a company takes the "light & local" approach, it's usually called a franchise. A regular franchise costs five to six digits to get going and franchisees anticipate these fees, including licensing fees (shiver-cringe). 

But ZaReason won't be run by people who attend franchise fairs.

ZaReason will be run by people with deep experience in the Tech Sector.

* people who have already had careers programming, developing, managing and are more than qualified to run a ZaReason shop

* recent grads or people with untapped enthusiasm who recognise the value of building high-end hardware for Linux only 

* LUG groups, maybe previously inactive, coming back together to form a group who run the local shop, combining talent and expertise

Since ZaReason in US and NZ don't have "extra" funds, the people setting up ZaReason shops in different countries will cover the startup costs such as getting their country's site set up, getting initial inventory, legal docs to set up business, and similar costs.

For initial funds, maybe they'll self-fund, a Loan from Shareholders like we did, small outlays in incremental steps, $500 initial investment, a bit of bootstrapping and reinvesting profits. 

ZaReason US is doing alright, chugging along. ZaReason NZ, set up in a country of only 4 mil people, the size of just San Francisco, is doing alright also. NZ gets crummy service (or none) from most computer companies because the country is "too small". We figured if we could survive in NZ, we could survive anywhere. And NZ has done nothing but delight. (Thank you!)

We've had a bit of success and aren't proprietary / greedy. We just spent some time wandering while trying to figure out a non-corporate way to build a FOSS hardware company. As of four hours ago, our plan was for my husband and I to set up every shop ourselves (a spine-crushing amount of work). Even our 11 year old could see that our approach was insane: "Mom, that's like trying to write an entire game engine on your own. That's a freakin' waste of your time."

Ah, the wisdom and clarity of an 11 year old boy. Somehow the business advice of a kid making disgusting noises seems more sane than advice from SF business sharks.

I haven't been able to wrap my mind around the appropriate type of business structure while I've been surrounded by regular business people, talk of licensing, market segmentation, profit margins, and all sorts of fees that raise the cost of "the product".  (I refer to my laptop as "my trusted companion", not "the product".)

ZaTab
But NZ business people are different. Of course they want to make money so they can feed their kids and go surfing on weekends, but the thought of big profits is a "meh". I've been surrounded by the Kiwi business culture for five months now and my mind has finally opened up to new possibilities.

 *~*~*~

Ah-ha moment -- I couldn't conceive of the appropriate structure because the appropriate structure for building and distributing FOSS hardware involves essentially giving ZaReason away to the world at large. No one gives away a successful start-up. 

 *~*~*~

But FOSS is some sort of organic, wonderful thing that often reminds me that the human race does have some redeeming qualities.

SF Bay Area
In the afternoons I sometimes wander on Mount Victoria where scenes from The Hobbit were filmed. I've been loosening up to ideas: Maybe the people who've offered to set up Za shops will Kickstart it for their country (could run through Za US since Kickstarter is still US based). I don't have the energy to single-handed produce a Kickstarter video, but who am I to stop others from doing so? 

Maybe they'll raise the funds themselves. Maybe they'll bootstrap it like Earl & I have done, starting both ZaReason North America and ZaReason Australasia out of a house to keep overhead as close to $0 as possible. 

Maybe they'll pool together their own investor funds. 

UltraLap
Here's the kicker -- the core work, the R&D has already been done to get these machines out to people. The supply chain is in place. There are still hurdles, like keyboards in your country's layout, but we've been working on global expansion since 2007 and have structured ZaReason to handle this type of growth.

Over the last six years we have fine-tuned the structure for ZaReason. It is profitable. Our shop in NZ is in the black, barely, but it's an amazing start. 

Since 2007 we've received requests, "Can I set up a ZaReason shop in _____ (name of country)." We set up ZaReason's procedures so that it would adapt easily to the EU, South America, Scandinavia, and at my son's request, Iceland, at my daughter's request, France, and so many others. 

"I envision hundreds of ZaReason shops dotting the globe. Light, lean, local. Computers built and supported in-country." 
zareason.com

We're pulling together a list of potential shop owners now and will do it on a mix of first-come, first-served + viability. Please email global@zareason.com if interested. 

It's time to stop saying no.

Tuesday, August 14, 2012

Follow-up to "Pricing Hardware that Runs GNU/Linux"


Update: It took a few hours, but we found what we need. We found a team that can answer these questions and more. For those who helped, thanks for your input!

*~*~*~

In Pricing Hardware that Runs GNU/Linux, I started what I hope will be a new practice at ZaReason -- giving rebates at the end of each accounting cycle, giving back any profits that occur during that time period.

For the last two weeks I have been cringing, literally cringing. How do I tell people that there won't be any rebates this cycle? It was break-even.

GNU Free Documentation License en:User:Amal
Enough computers went out the door to cover costs. Technically it should be counted as a loss since one cost is, "Donate 10% to FLOSS-support group." We donated about 2% plus the cost of a tablet, the ZaTab that will be given as a prize at NZOSA, New Zealand Open Source Awards.

Interesting note: In the last month ZaReason could have reasonably given $100,000 ($1.2m/yr) to various organizations who could have made great use of those funds: the FSF, SFC, EFF, Ada Initiative, Partimus, and numerous LinuxFests and volunteer-run conferences. These orgs need the funds to function. Think about it: ZaReason makes hardware, a tangible item that costs money. ZaReason could be and should be a part of the engine supporting these groups.

The ZaReason Australasia base has such minimal overhead, you would think there would have been significant profit for our first month. For the first month's accounting, I didn't include any start-up costs, none. There still isn't any payroll. But, a large part of our costs for the first few months will continue to be shipping, getting inventory in-country at a rate that doesn't require investment funds (smaller shipments more regularly). We're building inventory slowly, currently: "Get enough to cover the next week's orders." It takes at least a week for inventory to ship from US / Asia --> the base in NZ.

Waiting for hardware is horrid. If you doubt, talk to one of the people who have ordered an UltraLap 430 and have had to wait. Even better, ask Brenda Wallace (current one of the rulers of the Internet in NZ).

CC-SA Cathy Malmrose
Ask her how she feels about having to wait for her shiny new laptop to arrive. She has the patience of a goddess, but she wants it now for good reason. Every geek within earshot of this blog post will be able to empathize -- our hardware is crucial to the work we do and waiting is nearly intolerable.

So, help me with this solution? Put yourself in my shoes?

Public domain Medjaï
Or any shoes that fit? Just take a moment to walk with me, give this concept of "hardware for the community" some brainspace.

Perhaps I was using the wrong tool for the task?

Task = make ZaReason community-driven, give it that "we're all in this together" vibe.

Tool = REI style rebates to make sure there's no profit motive + give back to community

Perhaps the tool should be:

Tool = community ownership of some type with profits going to a mix of organizations that support FLOSS.

Public domain
The Spark: Last week we had lunch with a brilliant thinker named Daniel Spector. I walked away with a dozen quotable quotes and a brain overflowing with sparky ideas. The most interesting was the concept of possibly making ZaReason an employee-run cooperative.

But to do any type of business shift, I need a business person to help. I need The Eben Moglen of Global Business Development, someone who understands why FLOSS is important, who won't waste my time on a profit-for-CEOs type of business structure.

I'm no Utopian, but I do think corporate business structure is, as my 11 year old son would say, "Freakin' unfair." I don't see any reason why ZaReason can't run differently than regular US corporations. I just need to figure out how.

If you haven't met or hear Eben Moglen speak, the top three traits we need are:
CC-Attribution, Share Alike 2.0 Palosirkka

1. Brilliant, well educated, deep experience.

2. Practical, gets the job done,

3. Currently retired, leaving the legacy of accumulated experience

I need a business person to come in and say, "Here's what a co-op would look like in the tech hardware industry and here's how you access the talent to get it done."

I need someone who understands the concept of limited time and won't dump a task list on my over-full plate, someone who knows how to build engines, in this case an engine for FLOSS as a whole.

Note that I haven't given up the 100 days promise. The first week of September, I'll review costs for August and hopefully there will be surplus. Who knows? ZaReason has seen all types of fluctuation in the past and there's nothing I would love more than to issue monetary "thank yous" to those people who believed in us enough from the start.

CC-A-SA 3.0 unported Fir0002
Please comment or email me if you know of someone who could be the Eben Moglen of Global Business Development for ZaReason.

Help me find my way through this particularly dense forest of corporate structure? So I can better build what's needed for hardware that supports FLOSS?

As always, thank you.

Wednesday, August 1, 2012

Why does it matter? Keyboards for FOSS

Integrity: 
1. having actions and thoughts in alignment
2. the state of being whole, entire, or undiminished
3. a state of accuracy that gives strength

In 2007 we began shipping laptops and desktops to people who wanted Linux-specific computers. One day I had a --FREEZE-- moment.

Packaging a laptop to be shipped, as I began to close the lid I saw... the logo of an operating system we don't use. It was plain as day on the Start key.

It shocked me. How could we, as a Linux / FOSS supporter, in good conscience, ship out a laptop with only the insides, the hidden part, being Free and Open Source Goodness while the outside was obviously something else?

We found a manufacturer in the US who could do the custom keys for us and took a deep sigh of relief. Whew. Our laptops now had an Ubuntu key. (Later a Tux key, then later, after the key manufacturer went out of business, Ubuntu sticker / Tux sticker.)

A few months later I realized the less obvious -- every desktop we shipped out would end up with a keyboard that's easily available. It would end up with a similar lack of congruity / lack of integrity.
CC-Attribution/ShareAlike Wikisoft

Darn.

After all the hard work we do to make Free and Open Source, all the late nights and unpaid grunt work and we end up with someone else's logo on it? What a waste.

We did R&D on an Ubuntu keyboard and ordered 100 of them. They were most popular with the Italians. The keyboards were $25 and shipping was $28, so they paid more for shipping than for the keyboard itself but they ordered them anyway and often sent their Thanks. It was a gratifying project.


After the Ubuntu keyboards sold out, people kept asking for Linux-branded keyboards. We found a manufacturer who would do them, but made a mistake. We ordered a small run of them without doing testing. We figured, “What could be so difficult about making a custom keyboard?” That was the first and last time we made a mistake like that.

The key responsiveness wasn't right. We stopped selling them. If coders were putting so much effort into writing clean code, the least we could do is make high quality hardware to match.
Keyboard in backpack, CC-SA, Earl Malmrose

After that we were a bit nervous about quality. Earl, our R&D lead began working with OEMs to build a quality keyboard. He rejected all of them except one, a keyboard that he hauled around in his backpack to differenet conferences for more than two years. If the keyboard could handle being carried in a backpack (being jolted, twisted, dropped, stepped on, spilled on) then it could pass our quality test.

But, the OEM's minimum run is 1,000. They would prefer we do 10,000 but 1,000 is plenty for an initial run.

We figured that it was probably likely we could find 1,000 people in the world who loved Linux enough to want to have a keyboard that showed it. But how to fund it?

http://zareason.com/shop/zatab.html
ZaReason works backwards from most companies -- instead of asking, "how much can we charge" like most companies do, when we are working on a new product we base the price on, "How little do we have to charge in order to do the project properly and support it long-term?"

It's "how little" vs "how much", polar opposites. It's the FOSS way of approaching the exchange of tangible goods. So, funding a run of 1,000 keyboards wasn't in the budget because there was no budget, no surplus.

Whenever ZaReason does have surplus (usually by accident, by having a product that's more popular than we anticipated) we either use that surplus for R&D to create products like the ZaTab, a rooted tablet with an open bootloader, or we give the excess away.

Glyn Moody's book, excellent read
I asked around about the funding issue and several really smart people including Glyn Moody of Rebel Code fame and others encouraged us to use Kickstarter.

But that would best be covered in a Part 2 post tomorrow when my eyes aren't so bleary.

Teaser: I will be asking for photos and videos clip contributions. If you have some eye candy that shows FOSS goodness we might be able to use it for the Kickstarter video. We also need a few photos of truly dirty keyboards.

For more details check in again tomorrow! Thanks!

Thursday, July 26, 2012

The Tablet Challenge

Prototype Netbook CC-SA Cathy Malmrose
How much do you love your laptop / tablet / main computing device?

Right now I'm snuggled up with my laptop, purposefully blocking the fan to create warmth. My laptop is a netbook prototype that I've beat up in many durability tests. This little slab of machinery is core, vital, crucial, central to my life. (Photo is me trying to sleep on airport floor during a too-long layover. Feel free to steal my travel bag with passport & money but my laptop is protected in my arms during sleep. Not rational, I know.)

I am a bit nervous to announce that I will be doing a Tablet Challenge, giving up my laptop for a month and using a tablet exclusively. In the morning I will tuck my laptop away in a safe spot and if I need something off it that's not already in the cloud, I'll have my sponsor, er, my husband get it for me.

It's the first time in a long time that I haven't been able to swap the hard drive to make the switch to a new machine.

CC - Share Alike, by André Karwath aka Aka
I am nervous because any type of change is scary. Why Zebras Don't Get Ulcers by Sapolsky, a Stanford biologist explains the physiological reaction to stress. Letting go of my laptop will be stressful. I would be kidding myself to say that changing from a lifetime of using little laptops to an entirely different device would be easy.

Why am I doing it?

1. Because I can't list something on our website zareason.com or zareason.co.nz that I haven't used extensively myself (or had a family member use, such as my teenager using the Chimera). I need to see it in action. I need to rely on it in order to accurately judge it's value to people who ask about it.

2. Because I need to help bridge the gap between the ultra geeky R&D people and the people I meet who can't find the On button. No offense to people who can't find the On button. There's no shame in having spent your life focusing on areas other than technology. It would be a boring world if we were all geeks. To clarify: Ultra-geeks understand the value of a rooted, open bootloader tablet. My job is to communicate why that's important to people who don't know what an open bootloader is.

ZaTab on Fridge, CC-Share Alike Hadley Rich
3. Because I've met so many smart people who love their tablets so much that their eyes light up when they talk about them.

4. If I know the tablet on a personal level, I can better advise schools how to implement their use in classrooms or libraries how to use it as easy-install catalog machines on the end of bookshelves throughout libraries.

And without personally using it, I surely won't be able to figure out what Hadley Rich of NiceGear was doing when he mounted his ZaTab on his refrigerator. Just seeing that picture made me want to go cook something yummy.

During this challenge, I will be doing videos about the tablet: the good, the bad, and the inbetween. When we have exhausted topics about functionality, we can start doing side-by-side testing with tablets and other devices.

The goal -- what type of machine helps me lead a full, rich life? What reduces my workload and increases enjoyment?

Isn't that what technology is all about?

ZaTab prepped for The Tablet Challenge, Creative Commons Share Alike, Cathy Malmrose