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Microsoft Pays $536M to Novell
_mArk writes "This morning Novell announced that it had settled a potential law suit with Microsoft related to its NetWare product line. Microsoft agreed to pay $536 million to Novell, but this is not the end as there is another litigation against them pertaining to WordPerfect."
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I know this means a lot to Novell, but big money moves in this industry (like in so many others) like a river. Microsoft has a viable, long term strategy for survival and success. Novell has a viable, long term strategy for survival -- maybe. Part of the Microsoft strategy is legal payoffs as the cost of doing business. Things change when companies fail to innovate. IBM was too slow to keep up so they went through a bad time. Microsoft innovates not in the realm of technology, but in the realm of selling technology. No one does it better.
Unfortunately, they didn't "lose" anything here. They simply bought their way out of trouble yet again...
Novell is "reinventing" themselves as a Linux company.
Specifically, who do you think owns SuSE these days? It's Novell.
IMO - I think Novell has a couple of very nice products that they simply need to redeploy - a lot of the technology behind netware is actually pretty cool, but they allowed themselves to become marginalized (IOW - they sat on the laurels they built for themselves in the late80's and early '90s and it's almost put them out of business).
Once they finish this turn around, I expect them to regain some competitiveness, but getting back into "their" market is going to take some doing.
I have fond memories of WP5.1 for DOS but I am so glad that we have moved away from SHIFT+ALT+CTRL F11 for foo. WordPerfect took over from WordStar because of superior interface and design. While many people adore WP I wonder if it is more of a holdover from years gone by rather than actual superiority.
Perhaps it's because once you've learned it, the interface style you're "glad that we have moved away from" is actually superior to most modern interfaces, at least in terms of operator efficiency. It's just the learning curve that's a bitch.
It's just the learning curve that's a bitch.
For regular users of the software the learning curve is worth the time. For those that just want to type a quick document but still want to be able to perform operations on the document want to do so without having to look at cryptic key combinations or find options buried in hidden menus.
Most computer users these days are "casual users" and don't care to learn more than point and click. The "power users" might be offended by the fact that they are being left out but the simple fact of the matter is that the "casual users" are the ones in the majority and the ones that the companies cater to.
Gee, I don't know. Maybe some of the failures of Word Perfect (and every other competitor) had something to do with Microsoft's ability to lock them all out of every large Enterprise by their bundling practices. Innovate? Microsoft? Your kidding, right? Their only innovations have been with slimy business practices. No one can dispute their absolute genious there.
First shots?
You think this war started today? And Novell started it?
Go to the US Patent Office website and do a patent search for "Microsoft" and one for "Novell" (under the field "Assignee Name").
See who has been doing it more, and longer. I'll save you the trouble:
Microsoft: 3,520, since March 21, 1985
Novell: 243, September 24, 1990
Microsoft has Novell beat by an order of magnitude and then some. To give you some perspective, Amazon.com are famous for their patents, and they only have 41.
Microsoft is the poster boy for patenting anything and everything, and trying to use their "licensing" schemes to control and monopolize the market.
Nobody but William Gates is "forcing" Microsoft into this patent war. They are the agressors, not the victims. And they know exactly what they are doing.
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There are still keyboard shortcuts for everything in Word, if you want to go ahead and learn them to improve efficiency.
That's what they teach you in those MS Word courses at the local community college (at least thats what the good ones should teach you).
I don't know them, because I don't use Word but maybe twice a year.
With WP I had to know them, which sucked, until 5.1 came out and you could use a mouse to access pulldown menus.
That is, before WP 5.1 came out, I would actually do school reports and stuff in GEOWrite on my old C64, leaving the PC collecting dust. I'd rather wait for the screen to refresh than spend forever scanning over the template to look for the "italics" hotkey.
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You might be a little young to remember, but Word Perfect has been around for quite a while. MS Word always seemed to be the competitor up until Office 95 and more so after Office 97. WP was quite slick in 5.1/5.2 and prior.
WordPerfect became the market leader, then they got all fat and lazy, providing the opportunity for Microsoft to come along and eat their lunch with just a few new features that the folks at WordPerfect were too lazy to implement.
Actually, what happened is that when Microsoft came out with Windows they refused to give the WordPerfect programmers access to the Windows GUI APIs. This prevented them from making a version of Word Perfect that would run in a window instead of through MS-DOS. Microsoft released their MS-WORD with Windows support and became the market leader because no one wanted to stick with a DOS only aplication. It wasn't until later when MS-WORD was the leader that they finally let the WP Programers have access to the APIs. That is why they have a case against Microsoft.
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What's more, the 536M is about the size of the EU fine... so it's not really about the cash (what's a billion dollars to them?) it's about not letting *anyone*, any entity or government *anywhere*, tell them what to do.
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Illegal or not - who cares. The new competition commissioner has a history of being vehemently pro-Microsoft. So getting a payout before she dismisses the case may be a jolly good idea.
In btw, Americans have most likely missed this one around the election, but the "powerless" EU parliament managed to torpedo a well-known mafia puppet (The Lituanian candidate) along with a Catolic Bush clone (Italy). While I am not sure that the replacements are much better, this is still a reason for some selebration.
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Almost half a billion dollars seems like a lot of money, but compare that to the loss of customers: at one time, NetWare *was* 70% of all business networks (not the internet, obviously).
So what is that $536 Million? Something like 20 cents on the dollar?
Not that they could have gotten any more. I'm just saying, it is kind of like discounted severance pay: nice to have, but continued income would be better.
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