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VA Software Uses Own "Offshoring" Experience To Tune Flagship Product For Hot Growth Market

  • Creator of SourceForge Enterprise Edition Applies Product to Manage its Own Outsourced Development in India
  • Big Increase in Development Efficiency Sparked Decision to Tailor Product to Offshore Outsourcing Market
  • Company Eats Own "Dog Food" and Finds that it "Tastes Great"

FREMONT, California December 8, 2003 Like many U.S. companies today, VA Software Corporation (Nasdaq: LNUX) has been focused on controlling costs while improving productivity and quality. While achieving these goals, the company has also gained valuable insight into tailoring its flagship product for a fast-growing new market.

VA Software was a relatively early adopter of offshore outsourcing. In 2001, VA retained Cybernet Software Systems, Inc. (CSS), to provide development and maintenance engineering services for SourceForge Enterprise Edition, the VA product that provides a common development platform for companies creating and maintaining software applications. VA and CSS put SourceForge to work as the shared repository for all code, requirements, project plans, emails, and other documents related to the engagement. VA Software even added an extra level of protection for their intellectual property by creating a "gated community" area within SourceForge that hosted projects specific to their outsourcing partner, sequestered behind VA Software's corporate firewall. And VA Software leaders closely monitored vendor performance and specific project status by using management features in SourceForge.

Using SourceForge to manage its offshore outsourcing, VA was able to realize the substantial cost savings offered by its offshore partner while actually improving team efficiency and project manageability. VA achieved total returns greater than 400 percent on its offshore efforts and nearly doubled its development capacity. "There's no way we could have gotten returns like this without using SourceForge," said Colin Bodell, senior vice president of product development for VA Software. "We saved a huge amount of management time by using our own product to stay on top of the relationship with CSS; we used SourceForge to track everything, identify and fix project bottlenecks quickly, used audit trails to keep an eye on our IP; and we accelerated time-to-market by using SourceForge to hand work back and forth seamlessly between India and the U.S. The more we used SourceForge to manage SourceForge development, the more we realized that our own 'dog food' tastes great and provides an excellent solution to many of the problems our customers faced with offshore outsourcing. We have used our own experience to tailor the product for this fast-growing market."

Today, VA Software announced the release of SourceForge Enterprise Edition 3.5, which has further enhancements for offshore outsourcing use (see separate news release). SourceForge Enterprise Edition is evolved from the software used by more than 750,000 developers worldwide on www.SourceForge.net, the global nexus for open-source software development projects. SourceForge Enterprise Edition 3.5 adds enterprise-grade security and management features, resulting in a product that helps companies cut application development and maintenance costs while improving quality and reducing risk.

CSS is one of the first SourceForge users to experience version 3.5. "We think this product is better than great," said Shiv Kumar, CEO of CSS. "The Global Development Dashboard in 3.5 will give real-time, location-transparent visibility into project status to our India-based managers and VA Software counterparts. We've already achieved excellent communication and collaboration between the Indian and U.S. teams thanks to SourceForge Enterprise Edition. The new release will make our teamwork even better. We're now talking with VA Software about the best way for us to offer this to some of our other outsourcing clients."

Current research from META Group indicates that 41% of new development activity is now outsourced, with India the preferred offshore country for outsourcing. Gartner has publicly described offshore outsourcing as an "irreversible megatrend." Already used by scores of leading companies for secure, auditable multi-site collaborative software development, SourceForge Enterprise Edition 3.5 now also serves the hot offshore outsourcing market, triggered by the software creator's cost-driven decision to follow the offshore outsourcing path itself.

About VA Software

VA Software (Nasdaq: LNUX) is the provider of SourceForge Enterprise Edition, the web-based application that significantly increases a company's return on its investment in software development. SourceForge improves communication, collaboration, and synchronization amongst multi-site team members and gives managers real-time visibility and control over their projects, regardless of location. SourceForge enables higher developer productivity and faster project completion whether teams are in-house, outsourced, onshore or offshore. Major Fortune 1000 firms and more than 750,000 developers use SourceForge technology to power their global development efforts.

VA Software also owns OSDN, the most dynamic community-driven IT media network on the web. Every level of IT decision maker and buyer, from CIOs and CTOs to project managers and developers, turn to OSDN sites to create, debate, and make or break IT news, tools, technologies and techniques. OSDN is the home of the award-winning news discussion site Slashdot.org; the world's largest collaborative software development site SourceForge.net, linux.com, and other popular sites.

Further information on VA Software is available at www.vasoftware.com.

Contact:

Jan Liband
VA Software Corp.
(510) 6877153

Rick Laubscher
Messsagesmith
(415) 3055242



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