__/ [ Larry Qualig ] on Saturday 04 March 2006 13:00 \__
>
> Roy Schestowitz wrote:
>> __/ [ Larry Qualig ] on Friday 03 March 2006 20:46 \__
>>
>> >
>> > Technomage Hawke wrote:
>> >> Larry Qualig wrote:
>> >>
>> >> >
>> >> > John Bailo wrote:
>> >> >> Larry Qualig wrote:
>> >> >>
>> >> >> > http://biz.yahoo.com/prnews/060302/sfth091.html?.v=29
>> >> >> >
>> >> >> > During the first fiscal quarter 2006, Novell recognized total Open
>> >> >> > Platform Solutions revenue of $56 million, which was up from $14
>> >> >> > million in the year ago period.
>> >> >>
>> >> >>
>> >> >>
>> >> > --> Bottom line: their Linux business *quadrupled*
>> >> >
>> >> > The problem for Novell is that Linux is still less than 3% of their
>> >> > total revenue.
>> >> >
>> >
>> > -> 3% of a multi-hundred-billion dollar business is still fairly
>> > substantial.
>> >
>> > Except that Novell is nowhere near being a "multi-hundred-billion
>> > dollar business." The toal market-cap for Novell is $3-billion. That's
>> > what the company is worth. There are only 20 companies in the US that
>> > do $100 billion or more in sales and fewer than 5 that do
>> > 'multi-hundreds' of billions. Novell isn't anywhere near this list.
>> >
>> >> couple that with the *upward* trend and it won't take
>> >> very long to make it 20% of the overall revenues
>> >
>> > The trend is upward. You may have noticed that NOVL is getting
>> > slaughtered today. (Down 17%). It's basically because of managements
>> > conference call that took place yesterday after the markets closed.
>> > During that conference call Novell management said that demand for
>> > their products (includintg Open-Source products) is weakening in Q2 and
>> > that growth will be lower than in previous quarters.
>> >
>>
>>
>>
http://www.eweek.com/article2/0,1759,1933822,00.asp?kc=EWRSS03119TX1K0000594
>>
>> ,----[ Quote ]
>> | "During the quarter, Novell recognized total Open Platform Solutions
>> | revenue of $56 million, which was up from $14 million in the year ago
>> | period."
>> |
>> | [...]
>> |
>> | "NetWare-related revenue, to no one's surprise, continued its fall. This
>> | quarter it had declined 11 percent from the year-ago period."
>> `----
>>
>> So, as one would expect, it's Microsoft's elbow that is responsible for
>> the decline. Linux and Open Source solutions grow very rapidly.
>
> -> Notice the title of the article.
>
> "Better Linux Sales Aren't Enough to Halt Novell's Slide"
>
>
> I'm well aware that Open platform solutions grew very nicely at Novell.
> But how exactly is it that "Microsofts Elbow" that is responsible for
> the decline? It's cold and windy here in Boston (but I'm going skiing
> in 30 minutes anyway)... is this also Microsofts elbow that's somehow
> responsible?
It has been snowing in Manchester as well, but let's stay on topic. When I
said "Microsoft's elbow" I was very specifically referring to NetWare so-
lutions, as well as other solutions that reside on Windows (e.g. Group-
wise: http://www.novell.com/products/groupwise/ ).
I will remind you that when Novell sacked many employees a couple of
months ago, managers yelled that SuSE-affiliated staff was unaffected. I
believe that Novell keep an eye on their Windows-bound market, but rely
primarily on the prospects of Novell Linux, SLES, SuSE, and OpenSuSE,
which accumulate thrust like an avalanche. Be careful skiing. *smile*
> Novell is primariy a Netware company. This still holds true today. Is
> it Microsofts fault that customers are migrating *away* from Netware?
> Talk about a terrible OS... Netware was crap years ago. You could just
> as easily blame Linux for falling Netware sales. What if customers are
> replacing Netware servers with Linux servers.
I agree that NetWare is terrible, based on personal experience and woe
among staff and students. However, I can't see how this addresses the
point. I couldn't care less about NetWare, which continues to be used here
at present. My only interest in NetWare is the amount of money it can
pocket in Novell's safe. Novell are pushing Linux forward with technolo-
gies like XGL, which have already percolated to other vendors and distri-
butions.
Best wishes,
Roy
--
Roy S. Schestowitz, Ph.D. Candidate in Medical Biophysics
http://Schestowitz.com | SuSE Linux | PGP-Key: 0x74572E8E
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