The economy may be swirling around the drain, but revenues are rosy for Liferay (newssite), a provider of open source portal and enterprise collaboration software. The company announced 50 percent growth in revenue for its core businessin the last twelve months.

Liferay’s Continued Growth

According to the company, the majority of revenue growth is related to increased adoption by organizations in financial services, health care, manufacturing and higher education, which arechallengedwith controlling IT budgets while offering more services.Many have elected toadopt an open source product with a loweracquisition price and pay for theassurance of support and professionalservices -- Liferay’s primary revenuegenerating business.

It isn’t just the lower price point that has made enterprisesmorecomfortable with open source.

Many organizations are finding that open source products like Liferay offer the same, and sometimes morefeatures,flexibility, large knowledgeable developer communities andmore permissivelicensing models than comparable commercial products.

In addition, since anentire industry has developed to provideprofessional support for theseproducts, there are few reasons to beapprehensive about adoption.

The growth in revenue isn’t the only positive sign forLiferay’sstrength in the market. The company also reported substantial growthintheir OEM business. The average rate of downloads per month, anindicator ofuser adoption, has also increased from 64,000 to 125,000from the same periodlast year. Visits to Liferay’s website saw a 41% increase in monthlyvisits.

What’s Next for Liferay

Liferay’s strong performance isn’t a ticket to take a break, especially given the number of open source and commercial competitors inthe webportal market.

Learning Opportunities

The company has big plans for the next  half of2011. Liferay plans to launch the LiferayMarketplace -- an "App Store" style site for Liferay add-ons and applications. End users will beable to find, purchase, download and install third-partyLiferayapplications through the new site and vendors will be able to sell their products.

Liferay hopes their new Marketplace will position themas themain destination for solutions built on the Liferay platform.

In addition, the company will unveil their next release, LiferayPortal6.1 EE, at the upcoming Liferay West Coast Symposium in Anaheim, Calif., Sep. 21 and 22. As we recently covered, the Liferay 6.1 release will include full CMIS 1.0 support, among other things.

Yours truly will be attending the symposium on behalf of CMSWire, and I'll besure to bring you the full monty on the latest updates.