I love that story. It epitomizes the open source business model dilemma. How do you make money on an open source service or product? The open source software tried with more or less success by offering the software for free and charging for maintenance, which you may or may not buy. It’s tempting, but certainly not something every VCs will want to jump into.
I still think there is a business model in there. It hasn’t been found yet. It probably won’t happen as long as we try to bring in old systems. It needs to be radically different , radically inspired instead of copying yesterday’s format.