Novell Reports Leap in Linux Revenues

It kind of slipped underneath our radar last Friday, but Novell has released its financial earnings figures for the fourth quarter. While the company still shows a loss of 16 million USD (compared to 18 million during the same quarter last year), individual divisions of the company are doing quite well, with only two of them showing losses. Total revenue was 243 million USD. Interestingly enough, the company’s Linux business is doing very, very well.

While Novell’s workgroup business declined by 9 percent, and its service business by a staggering 26 percent, identity and access management’s revenues went up 11 percent, and systems and resource management 15 percent. The strongest revenues, however, were found elsewhere in the company: Novell’s Linux business sky-rocketed in revenue by 33 percent, to 195 million USD – which is a big chunk of the total of 243 million.

According to Sean McCarry, Novell director for the UK and Ireland, this massive success of the Linux business is thanks to everybody’s favourite Linux reseller, Microsoft. “Microsoft is the world’s largest reseller of Suse,” McCarry told ZDNet UK, “The 195 million USD comes out of the 240 million we agreed with [Microsoft] when we set out on this path. That’s 81 percent. Most of that business is from the datacentre.”

McCarry added that much of the sales come from customers replacing competing solutions, such as Red Hat, with SUSE.

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