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

SLAPP Censorship - Part 136 Out of 200: Lawyers That Get Paid to Mess About
They were already outnumbered and understaffed
 
Newer Not Better: Treadmill Updates Cause Problems
after 2 years the un-updated machines still fine
The Cyber Show on the Slop Bubble
new article about the implosion of the slop bubble
Links 01/08/2026: New York Times Trying to Inflate the Slop Pyramid Scheme (at Cost to Its Own Reputation) and "Iran Appears to Be Blasting Amazon Data Centers Off the Map"
Links for the day
Positive Political Momentum
Daniel Pocock is taken seriously by many people who contact us privately
Google "AI" is Plagiarism, the Case of Richard Stallman (RMS)
Why would anyone choose LLM slop over the originals, curated and fact-checked by domain experts?
Explaining That Software Patents Are Neither Legal Nor Desirable
Many of our readers work in the legal sector
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, July 31, 2026
IRC logs for Friday, July 31, 2026
Gemini Links 01/08/2026: Retirement, Bike Trips, Quake Stuff, Usenet Reborn
Links for the day
Links 31/07/2026: Microsoft Now Says Slop is Bad (LinkedIn Cracks Down on It), LinkedIn Narrows Down Size (No Expansion)
Links for the day
European Patent Office (EPO) Series: From Alicante to Munich: Another Smooth Ride
Campinos is intent on transforming what was originally envisaged as a temporary public office into his own permanent personal feather-bed
Daniel Pocock and the Important Observation About Threats of Cult-Like Behaviours (No Rationality, No Reason, Just "Mob Rule")
It's a threat to Europe's sovereignty
The "PIP Parade" of IBM's Lousy Management, Which Said "Blockchain" Was the Future
In a healthy company such a CEO would be punished for utterly wrong visions and predictions. Not at IBM...
SLAPP Censorship - Part 135 Out of 200: Limited Liability Partnership (LLP) That Does Not Disclose Financial Activities Before August
It certainly looks like they keep losing the remaining women that still exist in the firm
Links 31/07/2026: "Climate Cover-Up Continues" and Pesticides "Cook the Planet"
Links for the day
Datacentre 'Boom' Sceptics Aren't Luddites, They Recognise a Threat to Human Survival (Not Limited to Climate Change)
Archaeologists very well know that no species will survive forever
Microsoft's Claims Are Based on a Big Lie
the bubble is coming to its hard limits
Don't Lose Sight of the Impact of "End of 10" (Vista 10)
GNU/Linux has taken off fast
Microsoft's Debt Continues to Steadily Increase, Not Counting Hundreds of Billions in Secret/Hidden Debt
The mass layoffs will carry on, maybe labelled LITE
IBM is Circling Down the Drain, the 'Growth' Comes From Beancounting Tricks and Salary Cuts
IBM was down 2.17% yesterday
Microsoft's "Headcount" Distracts From How Big a Cull It Had This Month
It also speaks of numbers "[a]s of June 30" though the "buyouts" were effective July 1 and since then well over 10,000 workers have vanished
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 30, 2026
IRC logs for Thursday, July 30, 2026
Gemini Links 31/07/2026: Music, Journaling, and Longing
Links for the day
More Fake News From (and for) IBM, Nobody Ever Held Accountable for Fraud
Companies that turn a blind eye to their own corruption end up recruiting more corrupt people and sacking those who object to the corruption
Links 30/07/2026: Smol Document Server and More PalmOS-ing
Links for the day
Links 30/07/2026: Microsoft Refuting Its Own Slop Hype and "Amazon Is Gutting Its Hey Hi (AI) Division" (GAFAM Bubble)
Links for the day
Today The Register MS Published "AI" Spam and Fake Article by "Senior Technical Marketing Engineer"
unethical practices
Cult inquiry parliament leak fallout
Reprinted with permission from Daniel Pocock
Techrights Will Always Protect Sources
Our #1 priority is sources
European Patent Office (EPO) Series: Legal Concerns and Suspicions of Irregularities
complaints submitted to OLAF
The Era of Silence
So stay silent, remain hidden
GAFAM and IBM Dying in Massive Debt, Hence the Mass Layoffs (Increasingly Silent Layoffs That the Media Fails to Mention)
the integrity of this economy is only as good as its leaders or those who govern the market
TheLayoff.com Deletes Comment That Called IBM's Previous CEO, Ginni Rometty, "Gin 'n Tonic"
It is hard to believe the comment was deleted for being a duplicate (in another thread)
The Mainstream Media Continues to Overlook or Intentionally Ignore Hundreds of Billions in Hidden/Secret Microsoft Debt
the issue is that Microsoft's crisis is a lot greater and broader than this
SLAPP Censorship - Part 134 Out of 200: What "Majority Rules" Tell Us About the Litigant
we press on with this series
Overshoot Day Sites That Contribute to the Problem
Some of these are not even accessible (at all) without JavaScript
Microsoft May Have Gotten Rid of 8% of Its Workforce This Month
It's hard to know what's really going on because there's no transparency due to NDAs
Links 30/07/2026: "Age of Irrationality", Google Losing Money, and "House of Ellison is on the Brink"
Links for the day
Gemini Links 30/07/2026: Homeworlds Notes and Manuscript Submitted
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 29, 2026
IRC logs for Wednesday, July 29, 2026