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Novell Linux revenue soars as global server revenue plummets (CNet)
CNet takes a
look at Novell's second quarter results. "Novell reported $37 million in Linux Platform Products revenue, up 25 percent compared to the same period last year. While not on par with Red Hat's continued growth -- 18 percent last quarter on a higher revenue base, -- Novell's execution on its Linux Platform business, in particular, is impressive."
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Pricing Posted May 30, 2009 16:56 UTC (Sat) by dmarti (subscriber, #11625) [Link] There's a transcript of the call up now, too.Dana Russell: "Yes. I think we have been fairly aggressive with pricing and we have been over the last couple of quarters here sort of sent a message that has been we are willing to do what it takes especially in our open source and within the Linux products. That particular set of products is an avenue to generate more customers and the opportunity for us to sell our other proprietary products on top of them."
Questionable strategy Posted May 31, 2009 13:56 UTC (Sun) by man_ls (subscriber, #15091) [Link] Isn't that a questionable strategy? I mean, let's be honest: Linux customers are normally a pretty exigent bunch -- they want a lot of features for not much money (or at least not more money than proprietary equivalents). If Novell wants to peddle their proprietary warez to their Linux customers they have better be first-class products; otherwise the Free equivalents are likely to outbetter anything Novell offers.This strategy is not impossible, some hot companies are doing it -- namely VMWare or Google. But even without entering the ethics of it all it is not easy.
Questionable strategy Posted Jun 1, 2009 15:32 UTC (Mon) by jejb (subscriber, #6654) [Link]
> Isn't that a questionable strategy?
It's a standard business strategy for companies that sell software. If you run a business, you have to make money. In open source, there are three ways: Sell Support, Sell Services or Sell Software on top of the Open Source products.
> I mean, let's be honest: Linux customers are normally a pretty exigent
The need to have first class products to survive in the market place is pretty much standard business outside of software (at least where there's a properly functioning dynamic market) ... the good thing about open source is that it brings the necessary competition to the software business to make it happen here. Previously, some of the products for sale by some companies in software were a bit less than first class ...
> This strategy is not impossible, some hot companies are doing it --
Or Oracle or ... in fact any company who sells software that runs on Linux or other Open Source platforms.
Ethically it's fine (unless you take the FSF position that all software should a priori be free): Open Source encourages a diverse software ecosystem including proprietary software, providing it respects all the rules laid out in the licences for interacting with open source.
Questionable strategy Posted Jun 1, 2009 18:41 UTC (Mon) by man_ls (subscriber, #15091) [Link] Yes, but does it make any money? Google is not making any, Oracle presumably neither (and they rather sell a Free extension to their proprietary offerings), VMWare does not offer anything Free (although I understand they have a gratis product), etcetera. Remember that Novell's plan is hook them with Free software, and then sell them their proprietary stuff.Meanwhile, Alfresco and Red Hat are selling hundreds of millions doing just Free software. Is Novell selling many more Netware copies thanks to OpenSuse?
Questionable strategy Posted Jun 1, 2009 21:47 UTC (Mon) by drag (subscriber, #31333) [Link]
I would think that Novell would be selling massively LESS copies of Netware becuase of OpenSuse. :)
Why? Becuase they want Suse to replace Netware. They've replaced Netware 6.5 with Open Enterpise Server product, which is designed to seperate their serivces (like eDirectory) to run on top of a Suse kernel or a netware kernel. With OES 2.0 they've seemed to have reduced Netware down to running in a Xen VM with Suse.
Right now I don't beleive that there is a effective competing product in Open Source-land to either Active Directory or Novel's directory services. So it seems like it would be a approach that still retains some merit.
Questionable strategy Posted Jun 1, 2009 22:24 UTC (Mon) by man_ls (subscriber, #15091) [Link] Meanwhile what Red Hat does is: buy (or build) some Ok product, then GPL it and sell support. I am not sure if they have an enterprise directory product, but for those categories where they have a presence (middleware, process server, database) the strategy is working fine for them, and I believe it is sounder in the long run -- and even in the short.Not that I want Novell to fail, they are doing great things with Gnome, KDE and the rest. But I would like them to succeed doing the right thing.
open source directory server Posted Jun 2, 2009 0:28 UTC (Tue) by riel (subscriber, #3142) [Link]
Red Hat has a directory server product: http://www.redhat.com/directory_server/
Pricing Posted Jun 1, 2009 21:40 UTC (Mon) by jspaleta (subscriber, #50639) [Link]
uhm you linked to the wrong transcript. You linked to the Q1 transcript..
Here is the Q2 transcript: http://seekingalpha.com/article/140246-novell-inc-f2q09-q...
-jef
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