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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Like I said the GNU/Linux division is loosing money and cant carry its own weight and is dragging down the rest of the company.

Well no. The Linux side (The Suse and distribution side) of the company is being dragged down by the other parts of the company that are just simply dying (or haven't got off the ground - Ximian, Red Carpet, Mono....), and have been dying for some time. That was the point of buying Suse.

Like I already said the R&D on GNU/Linux at Novell is not on par with a good ROI. They spend billions and get millions in return.

Actually, they get nowt from their research and development. The maintenance of the distribution and the software is hardly R & D.

They need to stop there massive but not directed R&D investment in GNU/Linux and compare and figure out why they loose to Red Hat so often.

That's quite complex to answer, but it's down to the fact that Novell is not seen as a Linux company by many, they're still pushing Netware (OES) and eDirectory (so people perceive them not to have changed) and OES is simply not a Linux distribution. There are fees attached, as well as the service and support, which is all Red Hat charges for.

The reason why Novell loses out to Windows is because people are simply using Netware and Novell to manage a Windows environment. There's a lot of duplication, because if you manage a Windows network then you need to have Active Directory and all your employees in it. All of that may be synchronised from eDirectory, but you're still at a disadvantage. Why maintain two directory services infrastructures?

Believe it or not, Red Hat will eventually find the same problems, and Linux companies will eventually be reeled back to where they started - zero.

Edited 2006-03-05 20:00

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