S&P: Novell Downgraded to Strong Sell
- Shane Coyle
- 2007-03-14 17:53:01 UTC
- Modified: 2007-03-14 18:06:28 UTC
More
pessimism from analysts about
Novell's mixed source philosophy.
Downgrades to 1 STARS (strong sell) from 2 STARS (sell)
Analyst: Jim Yin
...
We forecast sharp declines in Novell's legacy businesses will more than offset our projected 50% growth in Linux Platform Products revenue. In addition, we believe cost-saving initiatives for the second half of fiscal 2007 (ending October) will adversely affect sales.
...
And, here's more confusion about Novell's
mixed messages
Comments
Ian
2007-03-14 22:43:33
"HSBC claims it will achieve cost savings by reducing the number of Linux distributions it uses and by improving the interoperability of its open-source operating system deployments with Windows."
It's like saying that the cost of using Red Hat Enterprise Linux is lower than the rest of the distros combined. Centering on one distro, whatever that may be, would probably bring costs down. It makes sense from a maintenance standpoint.