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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Moulinneuf
Member since:
2005-07-06

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.

Like I already said there not selling enough of them , they should be on par with Red Hat number of sale and even taking away there clients , its the opposite.

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. There promotion and publicity is as big as Red Hat and yet they loose to Red Hat 9 out of 10 time.

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. Throwing money at a problem dont mean your gonna solve a problem. They need to work on there offers so that people say why use Red Hat when Novell offer more for less and is better cheaper and faster to maintain and is more secure.

Reply Score: 2

ceo1 Member since:
2006-02-02

Novell has a price advantage over RH in the high performance computing area, where RH's price model is really very bad. HP and others have realized this and that's a big reason why they are supporting Novell for HPC use.

Is that enough to drive Novell's revenues where it should be? Of course not, but it is still a good grip on the market.

Reply Parent Score: 1

Moulinneuf Member since:
2005-07-06

"why they are supporting Novell for HPC use."

HP support anyone of value , getting there support dont equal that all there model shipping in any category are going to have Novell as default or even as an option.

Reply Parent Score: 1

moleskine Member since:
2005-11-05

The financial statement (and the previous one a few months ago) suggests that Novell's Linux/OSS side is doing OK. Not spectacular, and not as well as they'd like, but it has a good rep and it is growing.

The core of the problem with Novell is that the Linux/OSS side is a small fraction of the size needed to support the rest of the company which is doing badly. Essentially, Novell bet on a race: that they could grow their new Linux/OSS side fast enough to offset the decline in the rest of the company. For whatever reason, that bet hasn't paid off. The result is steady decline and shareholder unrest.

Since Novell are sitting on $1.7 billion in cash and short-term assets, they are at risk of some shareholders turning up and demanding that the company be broken up for hard dollars. This is the stock market for you and has nothing to do with the quality of SuSE Linux. Even if SuSE's sales doubled, the situation would be little different.

Reply Parent Score: 2

segedunum Member since:
2005-07-06

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

Reply Parent Score: 1

Moulinneuf Member since:
2005-07-06

"The Linux side Ximian, Red Carpet, Mono....), and have been dying for some time. "

You dont realise that Ximian , Red Carpet , Mono are all part of the GNU/Linux division. Dying also dont mean loosing or bleeding money. It just mean you sale less then what you used to.

"That was the point of buying Suse."

No , they tought they where buying a highly profitable #2 GNU/linux vendor on the cheap. Which SUSE whas not.

"Actually, they ... software is hardly R & D."

Wrong as usual.

"That's quite complex to answer"

I agree , I know you dont have the answer either.

"Believe it or not"

I dont believe anything you say if I cant confirm it from a trusted source. Nothing you have ever said to me or read about when you talked about Novell/SUSE or SUSE whas ever accurate.

"Red Hat will eventually ... they started - zero. "

Wrong as usual.

If one take there revnue alone they are doing great , I dont think anyone making 54 million in revenue is ever going to complain , problem is that to get this 54 million they paid billions.

Reply Parent Score: 0