Linked by Thom Holwerda on Tue 24th Feb 2009 10:24 UTC
Novell and Ximian Obviously, Linux vendors will not remain untouched by the economic downturn. Novell has already announced a number of lay offs, and the openSUSE Linux division has not been spared. openSUSE board members Pascal Blesser and Bryen Yunashko announced the lay offs.
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Novell is Bleeding to Death
by segedunum on Tue 24th Feb 2009 12:29 UTC
segedunum
Member since:
2005-07-06

Like most declines like this it is a long and slow process, but it's yet another nail in the coffin. Novell have been laying a lot of workers off over the past few years and it has made no real difference, so in the current climate the squeeze will get even tighter. There are even a lot of rumours that there are more layoffs being covered up within the company.

The biggest problem for Novell, as it has been since day one of their Linux involvement, is that their mainstay revenue generators of Netware, Groupwise and eDirectory are bleeding all over the floor in favour of Windows Server, Exchange and AD. They've been outflanked technically and strategically, and they still persist in copying from and bowing down before Microsoft. Rather than give themselves a shot in the arm by using open source software to create new products to increase usage and uptake of their own existing ones, they have done..........nothing. Except muck about with stuff like a Silverlight clone that does nothing for their bottom line. Microsoft have thrown a nice bit of 'fire and motion' on Novell there, as Joel Spolsky would say. They'll never learn.

Edited 2009-02-24 12:31 UTC

Reply Score: 1

RE: Novell is Bleeding to Death
by Adurbe on Tue 24th Feb 2009 14:19 in reply to "Novell is Bleeding to Death"
Adurbe Member since:
2005-07-06

come on they have made some very nice products based on their open source aquisitions. They are trying to slowly shift to linux as their revenue earner but its not an instant flick of the switch.

If novell suddenly stopped their groupwise and other suites then they would not be making the money to sustain their linux 'experiment'

I hope the company YOU work for doesnt simply drop its current product line and revenue streams and create a new one with incomplete compatibility.

Reply Parent Score: 5

segedunum Member since:
2005-07-06

come on they have made some very nice products based on their open source aquisitions.

Like what, and which ones are making money for them as Red Hat is doing with what they put their effort into? Fedora -> Red Hat. Fedora Directory Server -> Red Hat Directory Server etc.

Those of us who have followed Novell and seen their software in lots of organsations over the yeats have seen this erosion. They just haven't done anything in the open source arena to help them stabilise and increase revenue of Netware, eDirectory and Groupwise in the face of stiff competition and strategic outflanking from Microsoft. These are their primary revenue generators and what keeps the OpenSuse, Mono and other people in jobs. OpenSuse should have been the base for the new Linux based Netware. It isn't. It should be a stepping stone to increase usage and then increase revenue through familiarity. It isn't.

They are trying to slowly shift to linux as their revenue earner but its not an instant flick of the switch.

It's been over five years and Windows Server has been eating their lunch for all that time. How long do you think it takes to flick a switch? Time has not been on their side.

OpenSuse should have formed the open source base for their new open source Linux network operating system to replace Netware, increased the usage of it and given existing customers a reason not to jump to Windows Server and given Windows admins food for thought. Sod all has happened and there is still an exodus of customers.

If novell suddenly stopped their groupwise and other suites then they would not be making the money to sustain their linux 'experiment'

I'm not saying that they should be stopping their existing product lines at all. They should have been, from day one five years ago, continuing to support what they have but open sourcing them to increase usage, giving them more interesting features and add-ons and giving their existing customers a reason to pay for support and stay with them.

After over five years I think we can say that the Linux 'experiment' has failed conclusively, mainly because Novell hasn't got a clue what they want or need to do.

I hope the company YOU work for doesnt simply drop its current product line and revenue streams and create a new one with incomplete compatibility.

You misunderstand totally. I'm not suggesting that at all, but you have to work out how to move them to where you want to go and where those products will be sustainable. Despite all of Novell's open source aspirations their main revenue generators stand as they always have - alone. No one is using them and even fewer are paying for them.

Reply Parent Score: 3