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In June 2001, Progeny Linux Systems was in crisis. Looking around, co-founder and CEO Ian Murdock realized that the company needed fundamental changes to survive. Four years later, Progeny is back up to its former staffing levels and showing modest profits. It is also one of the few Free/Open Source Software (FOSS)-based companies from that era to survive. Murdock's assessment of where the company went wrong and his story of how it reinvented itself offer some practical suggestions for other start-ups, especially FOSS-based ones.
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