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

Legal Letters Are Not Postcards
It seems like intimidation, nothing more
 
IAM Magazine is in Effect Dead, It's Now Fused Into Microsoft's Patent Troll (Which It Has Promoted All Along)
Microsoft-connected patent trolls in Europe [...] Now, in his new job, Wild can use his 'expertise' to help guide blackmail/extortion to better harm Europe's industry
A Huge Proportion of 'Articles' in The Register MS Are Actually Paid Spam of the Communist Party of China, Selling Compromised (for Wiretapping) Technology
The Register MS is having a go at becoming a marketing company or "B2B"
Top Officials Have Just Left Microsoft, Layoffs in Anything But Name
Microsoft's debt is very fast-growing
Local Staff Committee The Hague (LSCTH) Meets "Alicante Mafia" at the European Patent Office (EPO)
Report on meeting with VP1 and his team on 21 April 2026
UbuntuPit (ubuntupit.com) Has Deleted Slop Pages, Its Slopfarm Experiment Has Failed (Like Always!)
Turning one's site into a slopfarm is a death knell
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 23, 2026
IRC logs for Saturday, May 23, 2026
The "Next Big" Bonus for IBM's CEO Apparently Comes From American Taxpayers While Veteran IBMers Are PIP'd and RA'd (Laid Off)
the next big thing will be the CEO's bonus
Links 23/05/2026: Starbucks Scraps Disastrous Slopfest, Colbert’s Final ‘Late Show’
Links for the day
Gemini Links 23/05/2026: Poetry, Hobbies, ROOPHLOCH, and More
Links for the day
Government Bailouts Won't be Enough to Save IBM
Bailouts from taxpayers in the US
Links 23/05/2026: Social Media Bans and Demise of Userbase of LLM Chatbots
Links for the day
SLAPP Censorship - Part 85 Out of 200: The United Kingdom's Rating for Press Freedom Has Improved, But We Can Do Even Better
we see the US at #64
Sites Realise That Becoming More Active by Using Bots (LLM Slop) is Self-Destructive
We'll soon (maybe next year) also show that some of the 85+ KG of legal papers sent our way are computer-generated garbage, which might run afoul of some rules
European Patent Office (EPO) Strikes Persist, EPO Management Tries to Give False Impression of "Happy Staff"
EPO is trying to broadcast to the world a totally phony image of itself
Gemini Links 23/05/2026: Patience, LLM Chatbts Being Bad, and Unexpected Computer Surgery
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 22, 2026
IRC logs for Friday, May 22, 2026
Links 22/05/2026: Ebola Crisis and Samsung Averts a Walkout With Big Bonuses
Links for the day
The End of FOSSPost (fosspost.org), It Has become an LLM Slopfarm Like FOSSLinux
These sites will never get lucky with slop. These experiments always end badly.
Links 22/05/2026: Inflation Fears and Thailand Tightens Visa Rules for Tourists From Dozens of Nations
Links for the day
EPO Staff Representation Speaks of This Week's Discussion With the EPO's Budget and Finance Committee (BFC) Amid Mass Strikes
The Central Staff Committee's outline (prepared in a rush) or the "flash report"
SLAPP Censorship - Part 84 Out of 200: New Legislation Against SLAPPs on the Way (After We Reached Out to Ministers)
They dealt with the matter individually too, but we won't share this in public, at least not at this time
The Corrupt Lecture the Non-Corrupt - Part XXX - Where Was "The Ethics and Compliance Team" When the Family of EPO President Campinos Was Caught Doing Cocaine?
It remains to be seen if national delegates will tolerate this in future meetings
Gemini Links 22/05/2026: Esperanto Music History, Suspicious Adoption of Signal, and Unauthorised LLM Slop in Code
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 21, 2026
IRC logs for Thursday, May 21, 2026