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

Bing Might Shut Down - Just Like Skype Did - Some Time in the Coming Months/Years (Parts of It Already Shut Down)
they try to bring the losses under control
Microsoft Rumours: This Week's Scale of Layoffs "Higher Than Reported" and More Coming Soon ("A Lot More Severe" Than May's)
The "3%" figure is false
Slopwatch: Sloppy Brian, Brittany Slop, and General Observations
Creative people don't need slop; there's just nothing good about it, slop appeals to lazy people careless about quality
No, Microsoft Didn't Lay Off So Many People Because of "AI" "Innovation" or "Efficiency" or "Era" or "Revolution" Etc.
Debunking one very common lie
What We Do When We Say "GNU/Linux" to People
It talks about "Linux", "GNU", and what it means to say "GNU/Linux"
 
Richard Stallman Still Respected by Many in the Libre Graphics Community
Richard Stallman and Professor Moglen never harmed anyone
If You Read Techrights, Then You Probably Want to Read Tux Machines as Well
That site is more active than this one
Gemini Links 15/05/2025: Forced Music in Publicly Accessible Space and ~silv is Online
Links for the day
Links 15/05/2025: KOSA Censorship (USA Becomes More Like KSA) and More National Cuts
Links for the day
Your Real Ally Would Not Defend the Company of SLAPP and Strangling of Women
who's left to tell us what's true?
Breakdown of Microsoft Layoffs Shows It's About Cost, Not Performance or Hype (Like "AI")
MSN (Microsoft) reposted this with some unnecessary spin
The Lawyers Working for the Serial Strangler From Microsoft on SLAPPing Techrights Have Apparently Lost Their Voice
the moment we mentioned that their media lawyer is leaving they went all quiet in social control media
At IBM, Relocation Can be a Trick or a Trap (IBM Gets Rid of Staff Under the Guise of "Relo")
IBM is not being honest with employees
Over at Tux Machines...
GNU/Linux news for the past day
Beyond Mass Layoffs at Microsoft: Entire Units Shut Down for Good
And it's far from over
Links 15/05/2025: Crikvenica, Analog Computer, and Slop 'Hallucinations'
Links for the day
IRC Proceedings: Wednesday, May 14, 2025
IRC logs for Wednesday, May 14, 2025
Links 14/05/2025: Fentanylware (TikTok) Harms Kids, Russia Refuses to Defuse
Links for the day
Gemini Links 15/05/2025: Poseur Nerds and Mennonites
Links for the day
VS Code Is Not FOSS, And Neither Is the Site "It's FOSS"
VS Code is proprietary spyware of Microsoft, yet this site keeps promoting it like it's FOSS
Links 14/05/2025: Facebook And Instagram Risk Nationwide Bans, Microsoft Subsidiaries Have Mass Layoffs Too
Links for the day
Canonical Will Give You Money Only If You Work for Microsoft!
Only if you are servicing (being a slave to) proprietary forges that Microsoft and the NSA control while violating the GPL will Canonical give you money
If Microsoft Staff That Strangles Woman Pays You to Write Lies, It Will Not End Well
The past couple of years were our most productive ever
Gemini Links 14/05/2025: "Writing My Story with Inspiration from Notable Lives" and People Start Shovelling Up LLM Slop Onto Geminispace,
Links for the day
Microsoft is Very Highly Stressed About Adoption of GNU/Linux at Windows' Expense (on Former "Vista 10" PCs)
What does this tell us?
Slopwatch: BetaNoise (BetaNews), LinuxSecurity, and Slopfarms Still Promoted by Google News
The primary goal is to demonstrate the problem persists
Links 14/05/2025: Google Agrees to $1.3 Billion Settlement After Spying, China Tariffs Don't Work
Links for the day
There Are Also Loads of Microsoft LinkedIn Layoffs Today (Keep Track of the Subsidiaries They Keep Out of Headlines)
Perhaps lost in the smokescreen
There Are Bigger Rounds of Microsoft Layoffs Coming, a Cull of 10% Implemented in Waves (the "3%" Figure is Misleading, Face-Saving)
Last night we said they might do the layoffs in three or at least two waves
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 13, 2025
IRC logs for Tuesday, May 13, 2025
Gemini Links 13/05/2025: Apocalyptic Future and More
Links for the day
Unless a Third of All Microsoft Layoffs Worldwide Are in Redmond (Washington) Alone, Microsoft Has Just Lied to Everyone Via Jordan Novet in CNBC (i.e. the Usual Any Time There's Mass Layoffs and Novet Weighs in With False Numbers)
Maybe when Microsoft said 3% it meant ~6,000 or more in the US alone
McKinsey (McK) is Killing IBM, It's All About Killing This Goose, "National Sales Team 80% on PIP Now" (Preceding Layoffs Without Severance)
PIPs are not based on performance
Links 13/05/2025: Microsoft Breaks Windows Very Badly Again, Mass Layoffs Reported (But False Figures, It's a Lot Higher)
Links for the day
As Expected, Microsoft Uses Media Operative (Jordan Novet) to Downplay the Scale of Mass Layoffs
here we go
2025 Will be a Big Year For GNU/Linux on Desktops/Laptops
with an economy like this, people who don't live in rich countries won't turn to Apple
Signs of Trouble: Microsoft Job Openings for Jobs That Do Not Exist!
Keeping up appearances?
"Special Place in Hell" for Women Who Help Violent Microsofters From Another Continent Attack Local Women Who Did Nothing Wrong, They Just Got Bullied and Deserve Sympathy or Compensation
Nothing says "Brat" like men who attack women, right?
The Numbers Game: 50,000-60,000 Microsoft Workers Laid Off in 2.5 Years? And Debt Still Tripled Under Nadella.
under Nadella Microsoft's debt trebled
The Slow Death of Windows Will Mean the Inevitable Demise of Microsoft
Once people stop using Windows, it'll be hard for Microsoft to sell anything to them
Last Week's Public Talk by Richard Stallman Well Attended and Covered in Technical News Sites
and we're looking at about 60,000 Microsoft layoffs in 3 years
Gemini Links 13/05/2025: Shopping is an Exasperating Nightmare and Making Phones Minimal
Links for the day
23,000 More Microsoft Layoffs by the End of June If the Estimates Are Correct (In Addition to About 6,000 Layoffs So Far This Year)
There's no questions about many layoffs happening this month. It got leaked already. The only question is when (and also how many).
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, May 12, 2025
IRC logs for Monday, May 12, 2025