Bonum Certa Men Certa

Further Financial Analysis of Novell (Looking Grim, Despite Grooming)

Even embellishment has its limited capacity

IT Jungle has the tendency to patiently cover news stories about a week after they make their initial appearance. The analysis is typically more profound as result.



Last week, for Novell at the very least, was the week that everyone took advantage of. They discussed Novell's alleged successes, as measured in terms of the state of its Linux business alone. This was bogus [1, 2, 3]. Now comes the following decent analysis, which delves a little deeper into the details others tended to miss, primarily folks whose inner self wanted to see Novell succeed. Everyone tends to prefer hearing just the good news, unless Microsoft is involved.

Commercial Linux distributor Novell may be very happy about the growth that it is seeing from its SUSE Linux products and has certainly dodged a bullet by embracing Linux as plain vanilla NetWare sales go into what is probably a permanent, if very elongated, decline. But Linux is still, by the numbers, a very small piece of the business at Novell, even if it does give Novell mindshare in today's IT space as the major--some might say only--alternative to Red Hat.

[...]

Of course, Novell's Workgroup division, which sells the Open Enterprise Server amalgam of NetWare and Linux, should probably be counted as much as Linux as not at this point, and this is still the largest part of Novell. In the second fiscal quarter, OES sales fell by 1.5 percent to $48.2 million, and NetWare sales fell by 7.1 percent to just under $6 million, with NetWare licenses down and support costs up. Novell's GroupWise and related collaboration software brought in $28.2 million in sales, up 7.7 percent, within the Workgroup division, and with all the other software in this unit tossed into the mix, the Workgroup division brought in $92.4 million, down 9/10ths of a percent. Identity management, a big deal for Novell for the past decade, accounted for $30.7 million in sales, up 6.4 percent, and systems and resource management, another area where Novell has tried to put a heterogeneous stake in the ground, brought in just under $41 million, up 15.4 percent.


There are conflicting views, which most likely depend on one's preference. You might find some who argue (unsurprisingly from Matt Asay again) that Novell did not need Microsoft for a boost in sales while Ed Moltzen, for example, seems to indicate that Novell should attribute this boost to Microsoft. He merely refers to the remarks of Novell's CEO, who seems keen to pass Microsoft some flowers.

Part of the deal called for Microsoft to pony up $240 million to Novell so, in exchange, it could hand out coupons to customers for Novell's server Linux. From the looks of it, Microsoft hasn't exactly been wasting time.

"To date, we have invoiced $157 million, or 65 percent of the original five-year, $240 million agreement," Novell CEO Ron Hovsepian told financial analysts last week when discussing his company's most recent financial performance.


You are hopefully seeing just how Novell's CEO feels about Microsoft. That's his #1 competitor, or at least what ought to have been his #1 competitor before losing focus and essentially signing off a non-compete clause with the company that hates Linux with passion.

At the end of the day, only one company truly enjoys this deal. That company is Microsoft. It doesn't need to even write code. All it takes is a handshake and a software patents portfolio.

Ron Hovsepian and Steve Ballmer



MS Novell

Recent Techrights' Posts

[Meme] Clergy of GNU/Linux (Corporations Like IBM)
Volunteers as powerless "followers" of companies that "harvest" their labour
 
Links 29/02/2024: Layoffs at Apple, Expedia, and Electronic Arts
Links for the day
Gemini Links 29/02/2024: Web Enshittification and Firefox user-agents
Links for the day
Spiked Piece/Censoreed Piece: 'Microsoft Copilot is a gimmick', says top CIO
Issues relate to connectivity and cost
Enrico Zini, Mattia Rizzolo, Plagiarism & Debian
Reprinted with permission from Daniel Pocock
There Will Be Lots More Apple Layoffs (Already Years in the Making)
The corporate media still tries to shape the narrative to prevent panic or delay market hysteria
Latest SUEPO (Staff Union of EPO) Report For The Hague Reveals EPO Does Not Obey Court Orders, Refuses to Allow Workers to Freely Talk to One Another
working in a place where communication itself is restricted
[Meme] The Oppression Will Continue Until EPO 'Quality' Improves
wonder why EPO morale is so low?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, February 28, 2024
IRC logs for Wednesday, February 28, 2024
Outreachy, GSoC-mentors & Debian-Private may soon become public records in federal court
Reprinted with permission from Daniel Pocock
Links 28/02/2024: Many War Updates and Censorship
Links for the day
Gemini Links 28/02/2024: Social Control Media Notifications and Gemini Protocol Extended
Links for the day
Links 28/02/2024: Microsoft the Plagiarist is Projecting, Food Sector Adopts Surge Pricing
Links for the day
Helping Microsoft 'Hijack' Developers (to Make Them Work for Microsoft, Not the Competition)
VS Code is proprietary spyware of Microsoft. Jack Wallen keeps promoting its use.
Gemini Links 28/02/2024: Groupthink and the 'Problem' With Linux
Links for the day
Android Rising (Windows Down to All-Time Lows, Internationally)
This month was a bloodbath for Microsoft
HexChat Looks for Successors to Keep IRC Growing
IRC is far from dead
[Meme] Just Make Him Happy
Y U no produce more monopolies?
End of a Long February
top 10 posts
[Meme] The EPO's Relationship With Patent Examiners
Nobody is "safe"
New Pension Scheme (NPS) at the European Patent Office Explained at the General Assembly
Investing in the future, or...
Donald Trump & FSFE Matthias Kirschner election denial
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, February 27, 2024
IRC logs for Tuesday, February 27, 2024
Links 27/02/2024: PlayStation Layoffs and More Oppressive New Laws for Hong Kong
Links for the day
Gemini Links 27/02/2024: Facebook as Containment Field and Depression Driven Development (DDD)
Links for the day
They're Adding Warnings Now: The Site "It's FOSS" is Not FOSS
It's better that they at least explicitly state this
Links 27/02/2024: Nevada Versus End-To-End Encryption, Birmingham Bankrupt
Links for the day
End of an Era
The Web isn't just filled with marketing spam but actual disinformation
[Meme] Onboarding New EPO Staff
You read the patent application and grant within hours
The Legacy Prolific Writers Leave Behind Them
"Free Software Credibility Index" after more than 15 years
The Ongoing Evolutionary Process of News-Reading (or News-Finding) on the World Wide Web
it gets worse
Phoronix in Google News
congratulating or welcoming Embrace, Extend, Extinguish (E.E.E.)
Google Fired Many Employees Working on Google News (Which Had Deteriorated and Became Gulag Noise, Littered and Gamed by Blogspam, Plagiarism, and Chatbot/Translator-Generated Spew), Now Comes the Likely 'Phase-out'
No wonder many yearn for the days of DMOZ and Web directories in general
IRC Proceedings: Monday, February 26, 2024
IRC logs for Monday, February 26, 2024
Over at Tux Machines...
GNU/Linux news for the past day
"It's Obvious There's No Future For Any of Us from Blizzard at Microsoft"
The rumours suggest that more Microsoft layoffs are on the way
[Meme] Who's the Boss?
"I thought EPC governed the Office"
Salary Adjustment Procedure (SAP) at the EPO and Why Workers' Salary is Actually Decreasing Each Year (Currency Loses Its Purchasing Power)
outline and update on a years-old blunder
Exposed: FSFE, Legal & Licensing Workshop (LLW), Legal Network & Modern Slavery
Reprinted with permission from Daniel Pocock