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Novell's Race Against Time
DiamondGeezer writes "The Guardian newspaper in the UK reports in 'It's a race against time' that Novell is on a knife-edge financially and competitively, having placed a huge one-way bet in the success of its Linux strategy. But there's no guarantee of success: its revenue from Linux licensing is puny, and it faces a crowded market of Linux distros. Novell may be getting some positive press now that it's gone full tilt for Linux, but let's remember the reasons why: because of mis-steps of its previous management (especially the disastrous acquisition of WordPerfect in the mid 1990s) and its failure to grow its Netware business (with more than a little help from Microsoft), it's now having to re-engineer itself for Linux."
Is Novell deserving of the support that the Open Source Software (OSS) community can provide to increase the odds of success regarding its Linux push?
If so, what can the average Linux user do to help (besides switching to Novell Linux Desktop (NLD) or becoming a shill?)
If not, why not?
Netware didn't just fail "with more than a little help from Microsoft". It failed because (and it kills me to say this), Windows NT was a better product than Netware in just about any way imaginable. I remember when I made the switch in my career from Netware to NT. I can't think of anything that Netware did better than Windows NT. Netware pretty much sucked ass...
I must admit that it was very early in my IT career that I made this switch. Perhaps my inexperience in Netware had something to do with my opinion of it.
I've been thinking for a while, from just before the start of the SCO vs IBM circus, that Novell is getting ripe for being bought out by IBM. Anyone else concurr?
The biggest problem Novell has is attracting the best and brightest software engineers. This is because a lot of Novell engineering is done in Provo Utah. Life in Provo is not for everyone. It is beautiful but it is one of those one company towns. If your job there does not work out then you'll have to relocate for your next job. The cost of living in Silicon Valley is high but a great engineer can find a new high paying job within a matter of days. Provo does not offer that.
While I don't doubt that Novell has taken a large risk with playing "the linux card", I don't see them in any immediate danger of financial difficulty.
http://finance.yahoo.com/q/is?s=NOVL&annual
While their installed base is certainly not what it once was, they have a solid reputation, still significant installed base, and from what I remember, a decent size pile of cash (771,844 at last quarterly report) to fall back on.
In other words, exactly where SCO might have been if they had not made a different sort of bet. (i.e. running a business of making products, selling support and consulting services, etc. Not to start an SCO love fest, but once upon a time they were a well regarded company).
ROFL. Yeah, right, sure. And rocks fall upward, and the moon is made of green cheese...
I administered Novell and NT both back in the days you're talking about. Netware 3.x beat NT 3.x so badly, on every possible applicable point, not even the most incompetent admin would have ever made the claim you just did with a straight face.
Microsoft PAYED my employer a huge sum to partially replace our Netware server with an NT 3.5 server. That little netware server was keeping the office served so far as email, web gateway, and file and print serving without a problem. NT on a slightly faster machine proved itself incapable of handling the EMAIL ALONE for the same office, and this AFTER having guys from MS fly down to work on it every couple of weeks for six months.
On top of lack of functionality and lack of stability, it was also impossible to properly admin. It was a total POS and everyone knew it. Even the PHBs were totally upfront about it - they knew it was trash. But whenever we had a problem, MS cut a check (or something to the same end effect) to more than cover the losses.
That's how they won. Novel certainly made mistakes, but that doesn't change the fact that their product was vastly superior and defeated on grounds other than technical.
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Friends don't let friends enable ecmascript.
Having done some research on Novell about 6 months ago, there's some things that are not pointed out in the article that relate directly to cashflow.
It is true that their share of server sales has dwindled from a high of 80% down to low double digits. You can actually see that the impact of the introduction of WinNT. Over more recent years, the decline is actually due to Linux. What people frequently misunderstand is that this relates to NEW server sales.
What is not mentioned is the actual installed base. In this arena, Novell is huge. IIRC, a study that I saw put it at something like 3 to 5 million machines are running Netware.That's far more than all *nix combined, and was only matched by Windows.
Installed base == support/maintenance/upgrade revenue - ie services revenue. Novell has a cash cow there, that's for sure. Check out their 10Qs. And I should note that all their other 'businesses' - be it identity or ex Collabra or whatever are basically immaterial in comparison to their "software division formerly known as Netware".
But that revenue is still not sufficient. It was clear that if they didn't buy SUSE, they would lose their installed base to Linux for file/print services over time. And BTW, the Linux NEW server sales have been increasing rapidly. I always see that Linux is increasing at the expense of Windows and/or Unix, but never Novell. That is what surprised me most in my travels....
Obviously, migrating existing customers from Netware to Linux doesn't prevent leakage to either Windows or other Linux flavors, but now, they at least have a clear path for customers, and it will probably be the easiest path for their installed base.
Anways, that's my rant. And I wish Novell the best of luck. Successful linux companies will mean even better corporate acceptance.
So does Anonymous Coward have good karma?
Not an urban legend. We (IT) lost track of a NetWare 3.x server used by a small (less than 100) department in a large (more than 20,000) entertainment company.
When it was time to upgrade the department's LAN from TokenRing to Ethernet, we couldn't locate this server. The clients had no idea where it was. They only knew that the all-important J: drive on their PC was there before they were.
It turns out that there used to be a janitor's closet behind shelves, and a large desk pushed up against the shelves, that no one in that department had ever remembered being opened. Certainly no one had the key for it. When it was finally opened, there was the 3.x, chugging away without a care in the world. I don't remember what the box was, but I doubt it held more than 16 megs of RAM.
By that time, the company had pretty gone the Microsoft route, and we were all weary of dealing with the christmas lights like nature of a WindowsNT based network. Needless to say, we were amused and more than a little impressed by this little-engine-that-could.
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