03.10.09
Gemini version available ♊︎Tough Time for Proprietary Software Companies (Novell, Microsoft, and Apple)
Summary: Apple is said to have laid people off whilst Novell’s outlook seems grim with Microsoft
WHILE MICROSOFT STRUGGLES to keep in tact its own workforce (without success), rumours swirl about similar problems at its 'sister' company. Apple Insider seems to be confirming Apple layoffs after repeated failures [1, 2].
Apple may be growing in wealthy countries, but it is virtually non-existent in the large majority of the world where GNU/Linux is the only viable substitute for Windows. Apple continues to rely on people who luxuriously spare money when they purchase computers and this becomes a poorer business proposition in a down economy.
After making itself appear impervious to economic conditions, Apple has reportedly shown 50 enterprise sales workers the exit in a low-key move that refocuses the company.
Novell will be hit too, based on the earnings call [1, 2, 3]. It just hasn’t been formally announced yet. SJVN, mostly a supporter of SUSE, is not particularly optimistic at this time. Yesterday he wrote:
Novell is in trouble. As Novell CFO Dana Russell said during the recent earnings call, “Our Linux business is dependent on large deals, which may result in some fluctuations of our quarterly invoicing. This quarter, we did not sign any large deals, many of which have been historically fulfilled by Microsoft certificates.”
What’s to blame, at least in part?
Novell first partnered up with Microsoft to boost its Linux business. Now, it appears Novell needs Microsoft to keep its head above water.
Novell stuffed its future prospects by making itself part of the Microsoft ecosystem. This ecosystem is not interested in promoting GNU/Linux.
Red Hat is meanwhile thriving and it’s among the very few companies which boast an increase in revenue, profit, and sales. █
“Our partnership with Microsoft continues to expand.”
–Ron Hovsepian, Novell CEO
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