Corel Claims That The Worst Is Over

Navarre writes: "Looks like Cowpland is on spin control now. Our least favorite Linux representative is now claiming that all's well in the Ottawa-based Corel. The story is here. Supposedly $25 mill in the bank and stable. Funny, but I just heard more people here in Ottawa had been laid off. Go fig. I hope Cowpland's correct though, since I have a friend trying to get work there." Maybe one of these days I'll write a huge feature on why Corel's financial difficulties had nothing to do with their Open Source strategy.

Comments

Corel's problems had very little to do with Linux

[jht]

Virtually every market Corel plays in is a market dominated by another company, relegating them to a poor number 2. Their platform strategy has also been very uneven.

For instance:
Corel WordPerfect Office: on Windows it competes with Microsoft Office. Unlike MS Office, Corel's product evolved from two separate companies' products (Borland Quattro and Paradox, WordPerfect) and really never had the advantage of good integration during the critical days before Microsoft locked up the suite market. Not to mention that they bought the WP Office product from Novell who had failed with it, and WordPerfect before that.

CorelDraw: It's probably their best stand-alone product, and the software they made their reputation with. But it's really tough nowadays to compete with Adobe and Macromedia (Illustrator and Freehand), not to mention that Corel's Mac support has been lacking (they alternate between neglect and religion), and the draw market is one where cross-platform compatibiliy and parity have always been critical.

Corel PhotoPaint: See CorelDraw. But it's Photoshop that croaks them there.

Corel Ventura Publisher: Another formerly market-leading product that waited too long to improve, got croaked, and then bought by Corel.

On Windows, Corel had a few good products, but got hurt by some QA issues (buggy releases of WordPerfect and CorelDraw in the past), and they specialize in marketing products that are all past their peaks. They killed off the cross-platform support of WordPerfect (one of WordPerfect's competitive strengths was that it ran on virtually every platform, now it runs on Windows and Linux - the Mac version and all the other platform versions are dead). They pinned all their hopes on a rapid transition to Linux, which has yet to happen. And they'll probably run out of cash before it happens.

Something else that's an issue in the death of a company is perception. People now see Corel as doomed - and their limited cash is forcing them out of events like PC Expo and MacWorld where they could at least try to make themselves look viable. Not to mention that their advertising has dried up, making it worse. I just hope somebody with a clue winds up with these products after Corel hits the FC hall of infamy. The only thing that might turn it around at this point is if Cowpland steps down and puts somebody in with tons of credibility in the industry. Novell got a few very good years with Eric Schmidt (though they're slipping back some now that Win2K is out of vapor), and Jobs saved Apple. I'm not sure who could bail out Corel, but it's sure not Cowpland and they're running out of time fast.

I give Corel until New Year's. Max.


- -Josh Turiel

Corel Linux

[Transition Cat]

Ontopic: Corel better not go under because I still haven't gotten my rebate checks. Barely ontopic: I finally got around to trying Linux after being sick and tired of Windows crashing every damn day; Corel Linux was the distribution I went with (because it'll be free if I ever get my rebate checks). Well, it wouldn't detect my serial mouse (no ps/2) on my desktop and the installation usually failed (stalled, or had display problems at best). It all looked fixable if only I knew command line stuff. More details here.

It installed pretty much without a hitch on my Compaq Armada 1590DMT Pentium 166MMX 48megs laptop. However, initial experience has been somewhat disappointing. It's been much slower than Windows 95 (which really surprises me) and Word Perfect looks like MSWord97's bitch. Unless I got a stripped down version, WP sucks (lack of fonts, features, options). Hopefully, Star Office will be an improvement. Also, little things, like not being able to turn off "tapping" for the touchpad make this user's experience less satisfying.

It looks like I'm going to (reluctantly) continue using Windows as my primary OS. I HATE Windows, but when it isn't crashing, or slow, it does what I need my computer to do. Linux (Corel Linux, anyway), just doesn't seem quite ready. For someone who does no programming, isn't running a server, and doesn't need a multi-user environment, Linux feels "not quite ready for prime-time." I fully intend to learn more about Linux - try other distributions (recommendations?), watch it grow, but for now, I'm stuck using Windows. Damn.

....

Umm, no way...

[Sir_Winston]

I'm constantly amazed at the number of posters on /. whose answer to everything is open sourcing something. I have nothing but respect for both open source and Free Software, but realism dictates that open sourcing one of the few applications that Corel actually manages to sell decent volume of, "wouldn't be prudent at this juncture."

The problem is, Corel isn't a Linux company. Tack on a "yet" to that last sentence if you believe, as many do, that Corel will be making Linux a topmost priority. Corel is a Windows applications company, and in the Windows world, the idea of open source or Free Software hasn't taken hold yet. Few in the Windows world, for instance, would pay for WordPerfect Office Suite if they could download it for free, while in the Linux world there are many people who would purchase their favorite distro in a boxed set even after they've downloaded it. Windows users are too used to having to pay ungodly high prices for every piece of software they own, to give much thought on how to compensate a company which has just given them something free. Software is still very much a commodity, a good to be purchased, to a typical Windows user--if you don't make him either go to the store and buy it, or enter a credit card # for a paid download, but instead let him freely download something, you're not going to get any money even if he uses it every day.

As for businesses, they wouldn't pay for a WordPerfect Office Suite which they could get for free, either. Unlike Linux companies as service companies, Corel wouldn't have any services to offer--office applications are pretty damned straightforward; there's little configuration to be done, and even a clueless newbie can figure out a word processing proggie in record time. In other words, Corel would have no source of revenue from WordPerfect Office, whereas now they have a small-compared-to-MS Office but still very tangible cashflow from it.

Netscape/Mozilla was another matter, entirely--there was essentially little choice but to open source the browser, since Microsoft was now giving one away for free and very, very few people were buying Netscape any more. Therefore it made economic sense to give away what you couldn't sell, anyway.

While it would be nice if Corel would open source WordPerfect, and it would benefit both the Linux community and all users in general (MS Office sales would start taking a huge dent, yay!), it wouldn't be in Corel's best interest to do it, and so there's zero chance of it happening unless Corel gets bought out by a *real* Linux company.

On a side note, I applaud Corel for their attempts to make a Linux distro easy enough for a Windows user to transition to, but they made things damned complicated in order to do it. I installed Corel Linux 1.0, and when I couldn't even get X to load in standard SVGA mode, I decided to just uninstall it. That worked, but left their customized version of LILO in the boot sector, the fancy graphical menu version Corel made, and it hung my machine when it realized that Linux was no longer there. I couldn't boot the damned thing at all, and no keystrokes in the world could bypass the thing. Finally I had to install Mandrake 6.1, whose own normal copy of LILO bypassed Corel's monstrosity, and then my system could boot again. Corel, be careful until you have more Linux experience...