Linked by Thom Holwerda on Thu 22nd Jun 2006 14:09 UTC, submitted by Flatline
Novell and Ximian Novell's board of directors on Thursday named Ron Hovsepian CEO and president to replace Jack Messman, and ousted the company's chief financial officer. In a conference call on Thursday, company executives said the changes were made to accelerate the growth at Novell, which has had disappointing financial results, particularly in its Linux business.
Thread beginning with comment 136134
To read all comments associated with this story, please click here.
TusharG
Member since:
2005-07-06

I thought they are doing pretty well in Linux!!! They recently grab good deal in China and Europe... They are seriously challanging Redhat...

Reply Score: 1

chemical_scum Member since:
2005-11-02

I thought they are doing pretty well in Linux!!!

Yes you are right here and Thom has got it wrong. Their Linux revenues are increasing significantly. However it is by far the smaller part of their revenue, the larger part being from the remaining Netware licensing.

Novells problem is that the Netware side of the business is declining, in absolute cash terms, faster than the Linux side is growing.

Reply Parent Score: 1

elsewhere Member since:
2005-07-13

Yes you are right here and Thom has got it wrong. Their Linux revenues are increasing significantly. However it is by far the smaller part of their revenue, the larger part being from the remaining Netware licensing.

It's all relative. There linux revenue is up 20% year-over-year, which sounds impressive, but still only amounts to $10M, which is hardly impressive.

Novell paid $210M cash for Suse, and an undisclosed but likely much lower amount for Ximian. Given that they allowed many of the core Suse people to flee in disgust and have had to work to rebuild their EMEA linux business to an extent because of that, and given that they continue to pour so many of their resources into mono, which has yet to translate into a tangible benefit and likely never will, it's questionable as to why Novell even bothered acquiring and didn't just do what other commercial distros do and leach from Debian.

Even being generous and considering OES utilizes Suse but is recognized seperately, they are still a long way from recouping those investments.

Don't forget that last year Messman was predicting this would be the year Novell knocked out Microsoft on the desktop. Remember all the noise about being the only $1B linux company? They're still running a far distant second to Red Hat.

So in that context, I would say their linux financial results have been and continue to be very disappointing.

They need to quit talking about how they're going to lead, and start actually doing something to make it happen.

Reply Parent Score: 1