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Novell Announces Agreement to Acquire SUSE

Mickey Hill writes "Novell today announced it has entered into an agreement to acquire SUSE LINUX, one of the world's leading enterprise Linux companies, expanding Novell's ability to provide enterprise-class services and support on the Linux platform. Novell expects the transaction to close by the end of its first fiscal quarter (January 2004). This latest move follows Novell's August purchase of Ximian."

36 of 672 comments (clear)

  1. Good. by jon787 · · Score: 4, Funny

    Now SCO can sue the company that sold them UNIX.

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  2. Webcast by argonaut · · Score: 5, Informative

    It looks like there is a web cast at 11 AM EST. Perhaps we will learn some useful information on what Novell is planning.
    http://www.novell.com/webcast

  3. The pressing issue: by curtisk · · Score: 5, Funny

    will Novell make their SuSE distro contain the infamous PHASERS.WAV and the FIRE PHASERS as part of the login?

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    1. Re:The pressing issue: by sphealey · · Score: 4, Insightful
      The second cool thing is that all of a sudden there is a viable alternative to the Red Hat evil empire. I would bet that Novell/Suse arent going to piss off all the developers like Red Hat has done.
      Historically however, Novell has done an excellent job of pissing off the independent developer community, and in so doing drove the developers into the arms of IBM and Microsoft. IBM in turn drove developers away from OS/2, which left Windows to take the field when Microsoft pampered those same ISVs.

      IBM learned from that set of mistakes. The question is: has Novell learned? Or is this the same bunch of guys who think it is still 1993 with Netware holding 85% market share?

      sPh

    2. Re:The pressing issue: by Pros_n_Cons · · Score: 4, Interesting

      I would bet that Novell/Suse arent going to piss off all the developers like Red Hat has done. Sure they will, once the community seems them being the most successfull we will shoot them down just like Redhat. RH has made some mistakes but nothing close to the M$ tag idiots throw at them. We hat thier success and the fact they're an American company. Don't beleive me? Read the 400 posts for this article, its obvious.

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      -- "of course thats just my opinion, I could be wrong." --Dennis Miller
    3. Re:The pressing issue: by BrokenHalo · · Score: 5, Insightful
      the Red Hat evil empire

      Err, not quite. While I am not a devotee of RedHat as a distro, I think it's a bit unfair to dub them "evil" when they have actually put a lot of manpower into products that have been released into the public domain free of charge.

      While it's not precisely altruism, they have contributed a lot to the Linux user community, and to deny that is churlish.

      Save the epithets for the real baddies in Redmond.

    4. Re:The pressing issue: by roystgnr · · Score: 5, Informative

      The second cool thing is that all of a sudden there is a viable alternative to the Red Hat evil empire.

      Suggested activities for while you wait for the alternative:

      1. Go download free Red Hat .ISOs, which include all the software Red Hat develops under an open source license.

      2. Go figure out why you can't download free SuSE .ISOs including YaST.

      3. Find some more appropriate "evil empire" (I'm afraid the world sucks enough that neither Red Hat nor SuSE should be very high on your list) to redirect your indignation towards.

    5. Re:The pressing issue: by ahillen · · Score: 5, Informative

      Sorry, I also wish I had my mod points:

      - Yast is not closed source, you get the source with every SUSE distro, you can change it, you can even redistribute the changes, as long as you mark 'your' yast version as a modified version. The restrictions are, that you are not allowed sell(!) your modified program, while on the other hand SUSE is allowed to incorporate your changes into their next version
      (for reference, type 'yast license' into google, for me it was the 5th link)

      - SUSE doesn't have a 100$ user licens (not even one you could put into quotations), because
      (a) SUSE Professional is only $79.95
      (b) you could also buy the update version for $49.95
      (c) you can install for free (modulo your internet connection costs) over FTP
      (d) you can legaly copy the CDs from somebody else
      The fact that the ISOs are not publically available from the net is something which I don't considere as positive, but it still doesn't make you assertions true

    6. Re:The pressing issue: by omaha · · Score: 4, Insightful

      Fedora release - what release? Redhat did a very poor job of communicating it's strategy to it's customers. There is a ton of confusion right now because of it. This is not the customer's fault it's Redhat's.

      They need to get their act together and communicate or they are going to loose lots of people because of it.

      I don't care what they intended or what they are doing if I can't figure it out.

  4. Hmm by epiphani · · Score: 5, Insightful

    two possible results:

    1. Novell stuffs this up, and I'm left with no real "Free" solution for buisnesses (I dont care about support, I just want a brand name and is recognizable and usable).

    2. Novell doesnt stuff it up, and SUSE takes over Redhat's market share here in north america.

    Either way, linux growth is going to stop dead for a good chunk of time while these issues with Redhat and Suse settle down.

    After yesterdays' article regarding Redhat's changes, I started looking at SUSE more carefully. Now we've got such serious flux in the two most important linux distributions that it'll take six months to a year before I feel comfortable pitching either of these to buisnesses.

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    1. Re:Hmm by bruthasj · · Score: 5, Insightful

      Either way, linux growth is going to stop dead for a good chunk of time while these issues with Redhat and Suse settle down.

      Puhhleeze. Please stop the /. cronyism, fanaticism, and sensationalism. It's getting quite stale in here and it makes the web log stink.

      I'm running short on time, so I'm going to let the moderators mark me as Troll as I don't have 30 links to back up these statements. But, I'm pretty sure that:

      1. Linux, the kernel, will see continuing development without care towards Suse or Redhat.
      2. GNU is still going to develop their wonderful tools.
      3. The important projects on sf.net are still moving forward.
      4. There are other distros.
      5. There are many independent parties packaging for Redhat and Suse; nice updates can be obtained from them.

  5. Great timing with respect to Red Hat moves by Anonymous Coward · · Score: 5, Interesting

    Novell/Suse is going to pick up the slack left by Red Hat getting out of the retail market. Very good indeed. Hope Suse is repackaged into the the red and white Novell style. I get the feeling that Red Hat will live to regret abandoning its base.

    1. Re:Great timing with respect to Red Hat moves by watzinaneihm · · Score: 4, Insightful

      If you look at the Novell product line, they are almost all server software which run on a network and a client from almost any OS can connect to them.They have almost no client part which makes them money.
      So, Novell I think has almost no interest in desktop, other than to use them as their "clients" to their servers. So I am sceptical how much novell will do for the desktop especially the GUI .If you have ever used netware you will know how bad their GUI is (ofcourse with Netware you are not supposed to be using the GUI, but using their web interface instead to manage it).
      And If my guess is right, they bought Ximian for their connector,so that they can use their mail server software to better integrate with exchange (maybe for migration, i dont know), in the process unintentionally acquiring one of the best desktops and a .NET implementation (again maybe some interoperatbility benefits here). They are acquiring Suse so that they get a stable base for their Netware 7 and so that they can use the mindshare to push their enterprise offerings , again in the process acquiring the biggest supporter of KDE (ximian is Gnome and Suse is KDE!).
      What they now have is some stuff they can make money on immediatly and some which maybe they can use later. The future of desktop linux depends on what novell does with the latter.

      --
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    2. Re:Great timing with respect to Red Hat moves by Chris+Croome · · Score: 4, Insightful

      RedHat are not abandoning their base!

      The are opening up development to the community, this is leading to lots of excitings happening, as I said yesterday.

      What RedHat are doing means that anyone can duplicate and sell Fedora CDs and stuff like that, Fedora is becoming more like debian in terms of community involvement -- and this is great!

      I dunno much about SuSE, but I do know that the nature of the mode of production of free software is such that it is best done in an open way -- doing it in a closed way is too expensive.

      Personally I'd rather be working for RedHat than SuSE right now...

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  6. KDE? by overshoot · · Score: 5, Interesting
    I wonder where this is going to take the desktop.

    Novell apparently is more interested in the Connector than the Ximian desktop, and more interested in SuSE's servers than its desktop offerings. However, SuSE has been a huge backer of the KDE project and Ximian is the home of Gnome. It'll certainly be interesting to see how the Novell management allocates their resources going forward, won't it?

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    1. Re:KDE? by Kur · · Score: 5, Interesting

      Not long after the Ximian acquisition, I attended a presentation by Chris Stone, Novell's vice chairmain (and the real CEO, if not in title), and he made it very clear that Novell was planning a significant push onto the desktop with Linux. He also indicated that Novell was likely to make other Linux purchases. Well, I guess they just did.
      Novell wants to be an end to end solution, from desktop to server to management. He sees Novell's earlier failure stemming from two problems: no developer support and no desktop offering (DR-DOS did not compete with Windows). He sought to rectify the first problem by buying SilverStream, but that wasn't enough. Give him credit for understanding that the real movement is in Open Source and not J2EE. Thus it also made sense to buy Ximian and instantly acquire an open source development base. Next, Novell needed a Linux distro. Again, to his credit, they bought one instead of developing their own. Now, Novell has to tie all of those pieces together.
      What does Novell bring to open source/Linux/etc? A large support, developmnent, and sales organization. Despite the declining marketshare of Netware, there are still many, many enterprises running on Netware and/or using Novell products. Novell's products are not as visible, simply because they're mostly infrastructure. How many people run eDirectory on their desktops? But, how many companies use it for authentication? Novell's taking a different course than IBM and, thus, stands a chance.

  7. Looks like the war is over by BubbaTheBarbarian · · Score: 5, Interesting

    For over three years now the differing factions at Novell have been fighting over which route to take in relation to the what will be the backbone of it's products. The Netware factions has been directly responsible for Novell NOT developing it's own Linux, despite them having their own kernel and distro in house.

    While this move is good for Novell, and good for the community, it has taken way to long in coming. This is partly due to the fact that if Novell HAD gone with Linux three years ago, they would have been the major supplier of the OS right off the bat for IBM, with IBM offering Linux based servers and caching boxes. When Novell dropped the ball, IBM pulled out.

    Another point to make here is what this will do in relationship to SCO. You may well remember the piece a few weeks ago that talked about a statement that Novell made, quietly at the time, that the license that SCO had to sell licenses to UNIX came from them. I would expect a major blowup from SCO in the next few weeks, though do not be suppressed if Canopy decides to kill SCO outright and take the tech into Netware Linux. Canopy waffles more then Clinton at a beach party.

    One other point...I have NEVER seen a machine serve as fast as a Linux box controlling files that are on Netware partitions. Say what you want about Netware being owned, but with the 2.4 kernel and multi-threading issues resolved (another reason why Novell was very hesitant to go with a 2.2 kernel based system) I would expect to see something really good from them in near future.

  8. "a company with no future" by djeaux · · Score: 4, Interesting
    Let's face it: Novell is a company with no future.
    A company that refuses to retool, change directions, acquire new interests, etc. is a company with no future. Acquiring Suse proves that Novell isn't quite ready to relegate itself to the footnotes of history. Time will tell... Personally, I don't think Novell will be able to every regain the dominance it enjoyed 10 years ago, but again, time will tell. At the very least, Novell is acquiring a technology that will be used, rather than following the lead of The-Company-That-Must-Not-Be-Named & just buying competition to kill it.
    --
    "Obviously, I'm not an IBM computer any more than I'm an ashtray" (Bob Dylan)
  9. Pretty well, it seems. by zonix · · Score: 4, Informative
    I wonder how IBM will react (IBM is using SuSE internally, how well does Novell's management get along with IBM?).

    From the press release:

    Novell today also announced that IBM intends to make a $50 million investment in Novell convertible preferred stock. In addition, Novell and IBM are negotiating extensions to the current commercial agreements between IBM and SUSE LINUX for the continued support of SUSE LINUX on IBM's eServer products and middleware products to provide for product and marketing support arrangements related to SUSE LINUX. Both of these agreements will be effective when the acquisition of SUSE LINUX by Novell is completed. z
    --
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  10. Re:Can anyone answer this for me: by Ath · · Score: 5, Informative
    I can only remember seeing Novell products in less than a handful of places-- and it was in the process of being removed in those places.

    That's because most people only think of Netware (the server OS) when they hear Novell's name. Take a look at eDirectory (if you use Yahoo's portal, you use eDirectory), DirXML (an amazing XML based directory synchronization tool), ZENworks (client management) and many other products.

    I almost dread every time I see an article on Slashdot about Novell because inevitably people talk about Novell as a dying company.

    Your question about Novell's capital is easy. They are a cash positive company and have remained so during most of their existence. Last I heard about a year ago, they had about $600 million cash in the bank.

    I recommend people who aren't familiar with Novell's product line just go take a look at it. Decide for yourself. I think you will be impressed with what they offer.

  11. Re:Holy shit! by nehril · · Score: 5, Insightful

    novell has a long history of fucking up good ideas. only now, at the end, do they realize what has been kicking their ass: limited APP server offerings.

    Novell is perceived by most of my customers as a (fairly kick ass) file-print-directory services server only system. but file-print-directory services are only part of what companies need these days. they need groupware/email (groupwise is a joke), they need SQL servers, and they need "Micro Vertical App Server" for Their Tiny Industry that somebody in a garage is addressing. And they want it all on the same platform, with integrated authentication.

    small vertical apps is a big one, but it seems to be too much of a bitch to write these VBesque vertical apps on novell, so nobody does. "Small Dentist Office Accounting Pro" gets cooked up on windows by a small software company and not on novell. (incidentally this is a bit of a problem for linux on the desktop front: the crazy apps like "BeeKeeper Ranching and Honey Tracking" are what keep most businesses from switching on the desktop).

    looks like Novell is trying to do what they failed to do with the original Unix license they pissed away: create a Novell branded viable app server platform. they screwed up the first time with proprietary unix. maybe a more open system will succeed, but knowing Novell, probably not.

  12. Another Novell screw-up coming? by sphealey · · Score: 4, Interesting
    I have always liked Novell technology, despite its quirks and flaws. And back in the day no technology supplier gave its customers better support than Novell. In fact, my first experience with Novell tech support was at 2 AM on Easter Sunday - with our support contract not yet approved by either company's legal dept, they nonetheless had a developer on the line by 4 AM who worked with us for 8 hours to get the problem fixed. So this could be a good thing.

    Vs. Microsoft this is a tricky move, because I think even the Bush Justice Dept would look very hard at Microsoft entering the Linux market.

    But historically, Novell has thrown away every technology and market advantage they have ever held, and handed their business on a silver platter to Microsoft (and maybe Sun). So does this mean Novell will now screw up SuSE, whose distribution I like a lot?

    sPh

  13. Check out the third paragraph too... by Ripplet · · Score: 4, Interesting
    Novell today also announced that IBM intends to make a $50 million investment in Novell

    Now that is a very interesting number indeed!
    And I think it sends a very powerful message to all those businesses out there that are succumbing to the SCO FUD (hey can we shorten that to SCUD!). IBM are basically putting their money where they're mouth is to show their confidence in the future of Linux. Nice one.

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  14. Re:No RedHat 10 and now SuSE aquired by Novell? by bahamat · · Score: 4, Funny

    Yes, I know, Fedora. However, Fedora is NOT
    RedHat Linux. Even though it is under the hood,
    the PHB's of the world won't see it that way
    without massive re-education.


    That's an easy one to overcome. "Oh, Fedora is the new name for RedHat Linux. You know, just like how it was Windows NT, then 2000, then XP, and now Longhorn? Yea..."

  15. Novell, tread very carefully, please. by EvilNight · · Score: 4, Interesting

    SuSE's got a damn good thing going. Don't muck it up. It's one thing if you want to bring enterprise level functionality and a slew of awesome new features to Linux (and to SuSE Linux in particular), but it's quite another thing to buy out a linux company and force them to take their linux distro in a different direction. I hope you choose the former and not the latter. SuSE is doing a dynamite job, so stay out of their way. Help, don't hinder.

    I've been using SuSE in the office since v7, and for my money it's the only distro I'll touch because it's easily the most advanced one on the market and I can get excellent technical support for it any time I need it (which isn't often, but in business you absolutely must have the security blanket). I'm going to be quite pissed off (and switching vendors) if this changes because of Novell's influence.

    Don't be dense and stop offering it for free like Redhat did, either (Fedora is not RedHat, different discussion entirely, see Redhat thread for discussion ad nauseum about this). It's a boneheaded move on so many levels. Nobody's saying you need to support the downloaded version (or even host it for free, people will mirror it after all), as long as you continue to release it so folks can get their hands dirty and get comfortable on the product without having to pay for it first. Using it for free for a time was the only way I could convince folks here to pay for it, and they did gladly once they saw how good SuSE is at doing its job.

    Keep the Novell-ized components optional, please. Some of us aren't using Novell technology, and it's going to be very annoying if we have to install NDS and Novell client software even though we have no intention of using them. Keep the Novell additions optional, not mandatory. You'll need to lure us into using them by quality. I still remember the days when Novell had a good product. Hopefully that can happen again.

    First Redhat... now SuSE. Tomorrow, Debian and Slackware will anounce a merger citing similar goals. I'm sure Thursday Mandrake will be bought out by Microsoft, followed by Linus selling the Linux trademark to SCO on Friday. Saturday we'll see Apple acquire all the rights to FreeBSD, and Sunday the world will simply end. After a week like that, most of us probably wouldn't mind. ;)

    --
    Hell is being intelligent in a world full of idiots.
  16. Novell basically acquired Suse for free... by Anonymous Coward · · Score: 4, Insightful

    NOVELL INC (NasdaqNM:NOVL)
    Pre-Market: 7.499 +1.449 (23.95%)
    NOVL Market Cap: 2.26B

    Let's do the math.
    Novell will pay $210 million for Suse, but Novell's market cap goes up by $500 million upon announcing the deal.

    So basically, the acquisition of Suse is FREE. Actually, Novell made an extra $300 million in stock value by announcing the deal - so it's better than free.

    Gotta love the free market system.

    1. Re:Novell basically acquired Suse for free... by jazman_777 · · Score: 5, Informative
      So basically, the acquisition of Suse is FREE. Actually, Novell made an extra $300 million in stock value by announcing the deal - so it's better than free.

      Novell pays for SuSE, but they don't get a bunch of cash for stock going up. The stockholders do (if they sell). You're playing a shell game.

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  17. Serious misgivings. by emil · · Score: 4, Interesting
    1. Novell has already invested heavily into UNIX by buying UNIX Systems Laboratories (USL) from AT&T. It didn't work out. Why are things different now?

    2. Novell previously had strong ties to SCO/Caldera/SCaldera. SUSE also has/had strong ties via the UnitedLinux project. The contractual ties between the combined entity will be even stronger.

    3. Ray Noorda and The Canopy Group must be seen as the primary instigator of SCO's assertions over the Linux kernel, with Microsoft a close second. While Ray Noorda lost control over Novell, what level of influence does he still retain over the company?

    Somehow, I do not think that we are seeing the big picture.

    1. Re:Serious misgivings. by eer · · Score: 4, Interesting

      1) My take is that the NetWare kernel folks (everything is done in the kernel) and the UNIX folks could never agree on implementation details..neither wanted to give an inch. Eventually, when MACH and Chorus got into the discussion things melted down - lack of concensus. There was even an element of OS/2. Too many choices, not enough compelling reasons to abandon long-held beliefs.

      2) To say that the Novell - SCO relations are "frosty" now would understate the picture ;-)

      3) I don't see that Ray "lost control" over Novell, but rather that he gave it up so that the company could grow up and move along. Novell has certainly had a bad few years, but that cash-flow from NetWare 3.x, 4.x, 5.x and 6.x licenses has lasted a LOT longer than I imagined it would back in '95.

      The company is pretty transparent, right now...we're doing Linux because that's where we see the business opportunity, and where we can leverage our deep, deep skills and experience running global customer support operations, among other things.

  18. DejaVu all over again and No need to switch by oldstrat · · Score: 4, Insightful


    I'm reminded of my reaction to Novell buying Unix System Labs in 92/93 and the sale to SCO in 1995 and the SCO rename to Caldera later. It all seemed to Rosey.
    Unix appeared to be in reliable hands and was being freed into Linux, Caldera even said as much.
    Then came per seat, and all the rest to the point where we are now with SCO attempting to steal Linux and claim far more in Unix than the law ever intended for.
    It keeps me from getting any warm fuzzies over Novell aquireing Suse.

    On the Redhat front. I find it odd being a registered adoptee of Redhat (can you really be the owner of OS software?) and a shareholder in the company that I have yet to recieve the email about the end of Redhat Linux.

    Redhat's site backed up the stories.
    BUT it's being misunderstood.
    Yes RH9 appears to be the last in it's line BUT RH Enterprise Linux WS is actually it's repacement.
    The License for RHEL WS is the same as for RH9. The only real change is that to get support from Redhat, you are going to HAVE TO PAY for the support.
    Your free to get support elsewhere free or otherwise.

    Reasonable and overdue, it's a sign of the maturity of commercial Linux.
    I'll probably step up to RH Enterprise, and now that Suse is under Novell I'll give it another cautious try, but there really isn't a reason to leave RH.

    1. Re:DejaVu all over again and No need to switch by _|()|\| · · Score: 4, Informative
      The License for RHEL WS is the same as for RH9.

      No, it's not. To purchase RHEL WS basic, you must agree to the RHEL WS Basic (x86) Subscription agreement, which states, among other things, that "Customer expressly grants to Red Hat the right to audit Customer's facilities and records from time to time."

  19. Scorecard by emil · · Score: 4, Interesting

    Perhaps a review of previous Novell acquisitions is in order...

    • DR-DOS
    • USL/UnixWare
    • WordPerfect
    • Quattro Pro

    None of these is currently a market leader. Perhaps RedHat ought not to shut the doors just yet.

  20. Re:I wander... by Erwos · · Score: 4, Insightful

    The biggest possibility is that they're going to move to Ximianized GNOME as the desktop. They'd be foolish to throw away a major asset (Ximian GNOME, which is far easier to use than even SuSE's KDE) just because some of their new developers were fans of KDE. I would expect YAST to see some major revisions, too.

    Lots of people will want to deny this because they know that it would be a huge blow to the KDE project. I really can't blame them. But Sun and RedHat are both using GNOME now, and Novell seems to be apt to move in that direction, too. Desktop consolidation arrives in the corporate market. We'll see if this changes anything...

    -Erwos

    --
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  21. Continuation of Novell's pattern by JonKatzIsAnIdiot · · Score: 5, Insightful

    Novell has a history of jumping on every bandwagon at it's peak, then abandoning it when something else comes along. Consider their past:

    1. Buying the AT&T source, then announcing plans to merge NetWare and UNIX into a hybrid called "SuperNOS"

    2. Buying Wordperfect, Quattro Pro and creating WordPerfect Office.

    3. Java-on-NetWare. Anyone remember "the world's fastest Java execution environment"?

    Every one of these failed, and was quietly abandoned. Now it's Linux. Hopefully they actually stick with this initiative long enough for it to bear some fruit.

  22. Bad news for Europe? Bad news for everyone? by Simon+Brooke · · Score: 4, Insightful
    One of the things everyone seems to have missed so far is that Europe's biggest and most successful Linux company is disappearing into the murky nexus of Noorda companies around Salt Lake City. Whatever the relationship between Noorda, SCO and Novell just now, they all swim in the same pool...

    This makes Mandrake the only even moderately high profile commercial Linux distribution left in European hands, and as is well known Mandrake's finances are seriously wobbly. And this matters for everyone just now, because the future of Linux in the US is being played out in just that same murky Salt Lake City slime-pool. Fall out from the SCO case will affect all US-owned Linux distributions.

    --
    I'm old enough to remember when discussions on Slashdot were well informed.
  23. Kiss of Death by Deathlizard · · Score: 4, Insightful

    I dont know about you, But I would be worried if I used SuSe as my Linux Distro.

    Why? Because Novell Aquired it. If there's anything that has been proven over the last couple of years is that Novell buying a company out is basicially the Kiss of Death.

    Look at Wordperfect (pratcially dead), Quattro Pro (dead) and Caldara (Now SCO. - Suing anything that Produces code for money)

    Maybe I'm wrong. Maybe their aquiring it in order to expand their networking capability beyond Netware futher, or do away with the netware OS altogether and replace it with a Linux based network server.