Sun was recently the perfect example of why many companies don't invest more in open source software.  Sun was accused of hardball open source project tactics.   Many companies are afraid to start working on open source software projects because they are afraid they might make a mistake - and mistakes in the open source world are very public, feedback is harsh and the negative publicity sticks around for a long time on the internet. 

Sun's story important for companies to understand because it shows how the relationship between companies and projects can go sour - especially when the company employees working on the project don’t agree with management on what’s to be done.  It’s not clear what exactly happened and what was cause and effect but it looks like:

• Sun started an open source project, OpenDS
• The charter said that Sun appointed the project manager
• Somebody from Sun on the project changed the charter to say the project appointed the project manager
• Sun first level managers got upset, tried to (or did) change the charter back and in the process a bunch of Sun OpenDS employees left or were fired
• Sun executives are just now learning about it and trying to back paddle

So what should companies working on open source software projects do?

• Keep lines of communication open between open source developers and management.
• Make sure that developers understand how the open source project is important to the company.
• Make sure that the developers understand and are on board with the company's strategy.  If the company employees working on the project aren't on board with the company strategy, then that is a clear indicator that the open source software project is not going to be successful for the company.  The project's goals and the company's goals are most likely in conflict.

In short, communication and transparency are key to a project's success!  Luckily for all of the open source communities that Sun participates in, Sun is probably open source saavy enough not to be scared away by this!