Linked by Thom Holwerda on Sun 5th Mar 2006 13:34 UTC, submitted by Moule
Novell and Ximian "It was not the best of quarters for Linux vendor Novell. When Novell announced its financial results for its first fiscal quarter, which ended Jan. 31, 2006, it reported revenue of $274 million [EUR 227 million], compared to revenue of $290 million [EUR 241 million] for the first fiscal quarter 2005. This was a decline from the previous quarter in which Novell had reported $320 million [EUR 266 million] of revenue."
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RE: Novell = Sun
by segedunum on Sun 5th Mar 2006 19:44 UTC in reply to "Novell = Sun"
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Novell bought SuSE - open sourced SuSE Linux and now scratching their heads on how to get people to pay for Novell Linux Desktop when OpenSuSE is free.

That conflict in how they're presenting their software to customers, and what customers are actually paying for, is a big problem for them. It also means they can't concentrate on making the software they have much better and stop people from migrating from Netware to Windows, and to a lesser extent, Red Hat.

Novell bought Ximian - didn't know how to make Red Carpet or Mono work, ton of money down the tubes.

That's about the size of it. Their fixed costs are huge and their revenue, although significant, is just being eroded.

Selling software that has absolutely no value-added anything over free versions, or over competitors, is an absolute no, no in the open source world. The days of packaging up the kind of software Novell produces and charging fees, or worse, the dreaded 'service and support' are very much over. You need a much cleverer business model, or you need to create a lot of value added tools above the distribution and open source software that you're packaging up. You can't expect to just package up open source software and maintain several hundred million per quarter in revenue, or simply throw your existing, dying proprietary software into the open source mix (i.e. OES) and expect anything to be different.

Novell are going out of business, althought Sun probably have a bit longer left.

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