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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Novell = Sun
by stephanem on Sun 5th Mar 2006 18:53 UTC
stephanem
Member since:
2006-01-11

Case #1
-------
Sun bought Star Division - open sourced Star Office and now scratching their heads how to get people to pay for Star Office when Open Office is free.


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.


Case #2
Sun bought Cobalt - didn't know how to make it work, stopped development of Cobalt Raq and a ton of money down the tubes

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

Reply Score: 2

RE: Novell = Sun
by segedunum on Sun 5th Mar 2006 19:44 in reply to "Novell = Sun"
segedunum Member since:
2005-07-06

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.

Reply Parent Score: 0

RE[2]: Novell = Sun
by Jamie on Sun 5th Mar 2006 20:02 in reply to "RE: Novell = Sun"
Jamie Member since:
2005-07-06


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


Its a bit too early to write Novell off just yet. They do have a strong position in government circles (along with Sun and RedHat) so they will always have a fair chance to win over a few million government desktops.

You cant however expect them to reap billions as they are fairly new to the Linux market and it will take time for them to become established and set their stall.

A better business plan, more consolidation (gnome vs KDE) and making investments in areas likely to generate the most income would be a lot wiser than what they are currently doing byt there is still plenty of time for Novell to change direction.

Reply Parent Score: 2

RE: Novell = Sun
by dweazle on Mon 6th Mar 2006 00:29 in reply to "Novell = Sun"
dweazle Member since:
2006-03-05

FYI: One of Novell's products (ZENworks Linux management) is based on Red Carpet, which in turn is build with Mono. And I can tell you from my own experience that they've done it right.

Big companies and government don't care about free software (as in beer). They care about freedom (as in speech), but even more importantly they need commercial support. Try running SAP, Peoplesoft or Oracle on OpenSUSE. You might get it to work, but don't call SAP if it doesn't.

Novell can offer support, they offer additional tools to manage your datacenter (try managing hundreds of servers with YaST). They offer staff training too. If you have a company with more than 50 Linux servers, Novell is one of the company's you'll want to talk to. It will be well worth the investment.

Oh man, that's my second Novell fanboy reply. I'll stop now ;)

Reply Parent Score: 5