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Novell CEO Shakeup Puts Ron Hovsepian in Charge

jht writes "Arriving in my Inbox a few minutes ago (I'm a Novell Partner), was the announcement that effective immediately, CEO Jack Messman and CFO Joe Tibbetts are out of jobs at Novell. Existing president Ron Hovsepian was named CEO, and an interim CFO was named as well. Messman will stay on the board thru the end of October, though. A webcast of the conference call should be available shortly at www.novell.com/company/ir." ukhackster links to ZDNet's coverage of the shakeup, writing "It looks like [Messman's] been blamed for Novell's poor performance in the Linux space versus Red Hat. But can Linux ever be a real cash cow?"

48 of 129 comments (clear)

  1. Can linux ever be a real cash cow!? by saleenS281 · · Score: 5, Insightful

    Can it? Is that a rhetorical question? Linux already is a cash cow, I think Redhat proved that long ago...

    1. Re:Can linux ever be a real cash cow!? by ackthpt · · Score: 3, Insightful

      Can it? Is that a rhetorical question? Linux already is a cash cow, I think Redhat proved that long ago...

      I think IBM have proven that as well.

      Keep in mind, if you have companies raking in billions supporting Windows, you're doing something wrong if you can't do it with Linux

      --

      A feeling of having made the same mistake before: Deja Foobar
    2. Re:Can linux ever be a real cash cow!? by neonprimetime · · Score: 3, Insightful

      It depends on how you view the cow ...
      - Is this "cash cow" producing cash?
      - Or is this "cash cow" eating cash?

    3. Re:Can linux ever be a real cash cow!? by IAmTheDave · · Score: 2, Interesting

      Yeah, but it isn't Linux that's raking in the cash, it's supporting Linux. And if you're making millions and millions supporting and fixing people's Linux installations, what does that say about Linux?

      Same thing it says about Windows?

      --
      Excuse my speling.
      Making The Bar Project
  2. Like this? by i_want_you_to_throw_ · · Score: 5, Funny

    killall -HUP NovellCEO

    1. Re:Like this? by path_man · · Score: 4, Funny

      On Netware, isn't it an ABEND??

      --
      The surest sign of intelligent life in the universe is that none of it has tried to contact us. -- Calvin & Hobbes
    2. Re:Like this? by jesuscyborg · · Score: 3, Funny

      $ tail /var/log/messages
      Jun 22 11:38:53 ipx-svr-lol NovelCEO (): Re-parsing mission statement...
      Jun 22 11:38:55 ipx-svr-lol NovelCEO (): [FATAL] Out Of Equity

  3. I don't know .... by hawkeye_82 · · Score: 4, Insightful

    I just don't know whether to feel sad for these guys, that they're taking the fall for something that they may not be in control of, or to feel happy that the top management has taken the hit rather than the lower ranks which is usually more common practice in corporate America.

    I just don't know how to feel !! Help me Slashdot...

    1. Re:I don't know .... by Anonymous Coward · · Score: 2, Informative

      You know Novell also laid around 600 to 1000 employees last year, right?

    2. Re:I don't know .... by Anonymous Coward · · Score: 4, Funny
      You know Novell also laid around 600 to 1000 employees last year, right?

      No wonder Messman left. He must be tired from all that hanky-panky.

  4. For the want of a proofreader. by azav · · Score: 2, Insightful

    "Existing president Ron Hovsepian was names CEO"

    Names?

    Why don't the editors actually correct errors in these articles they post?

    It just looks shoddy when articles are posted to inform and aren't even checked for basic grammar.

    --
    - Zav - Imagine a Beowulf cluster of insensitive clods...
    1. Re:For the want of a proofreader. by Goblez · · Score: 2, Funny

      Naaahh, he obviously just changed his name to reflect his new title. I'm personally was names El Presidente.

      --
      - Kal`Goblez
    2. Re:For the want of a proofreader. by azav · · Score: 2, Funny

      You're got professional and accurate and you've got shoddy.

      Does your compiler check your code for you and alert you to errors?

      If you can't communicate properly and grammar check your communications, why do you even check your code for accuracy?

      It's a simple point of being correct and accurate or looking like a chump because you don't proof your own work.

      To illustrate my point, you typed:
      "Seriously if your just too damn stupid to figure it out maybe you should not be reading it."

      Your you are. Basically, you told me that "just too damn stupid" belongs to me.

      If you wish to insult me correctly, a proper version of your sentence is below.
      "Seriously, if you're just too damn stupid to figure it out maybe you should not be reading it."

      On the other hand, if you can not type it correctly, maybe you should not be writing it?

      If professionals can't master the basics of 5th grade English it's just a poor reflection on themselves and how they come across to others. In a question and answer session with President Bush, a woman from a professional news organization submitting a question for GWB, asked him if he "conversated" regularly with the person in question. Yes, she looked like a chump on national TV. As did her organization for hiring a reporter who uses words that do not exist.

      --
      - Zav - Imagine a Beowulf cluster of insensitive clods...
    3. Re:For the want of a proofreader. by azav · · Score: 2, Insightful

      HEH

      "You're got professional and accurate and you've got shoddy."

      Looks like I'm a prime example.

      "You've got professional and accurate and you've got shoddy."

      It figures, I'd catch that one after proofing it and sending.

      Also I typed "your is not your" using the greater than and less than symbols. Slashdot seems to filter that out.

      --
      - Zav - Imagine a Beowulf cluster of insensitive clods...
  5. Linux=CashCow by infosec_spaz · · Score: 5, Interesting

    I agree with the guy up there...Linux is already a cash cow...Look at how many companies who make software that runs on Linux are very prosperous, and look at Novell...They have been around a long time, and they plan on being here much longer, hell, I love most of their software, it has a place, and as long as they keep up with the market, and know where to put the software, they will keep a strong customer base. That said, I know several companies who are already running their enterprise Linux, with Netware services and LOVE it!! Yes, Linux will continue to proliferate the enterprise, and as long as companies like Novell are pushing it, it will get there relatively fast.

    --
    ----- I have bad karma for a reason! -----
    1. Re:Linux=CashCow by Lumpy · · Score: 5, Interesting

      The funny part is the number of nay-sayers here that have zero clue as to the amount of penetration that linux has.

      Linux is absolutely number one in integrated items. Most mp3 players at the home component level to many pocket units run linux. most DVD players sold run linux, most PVR's run linux, Commercial security pvr's run linux, almost all SIP phones are linux based.... the list goes on and on and on.

      IP security cameras, etc...

      In the high end home automation and integration bix I find linux to be more prevalent than microsoft or QNX or other os types simply because of cost (Crestron is a MS whore with their embedded XP but most of their items are repackaged devices available with linux already in them... Adagio Music server for one example.)

      This is ignoring the server room and workstations.... Linux is everywhere.

      --
      Do not look at laser with remaining good eye.
  6. Re:"can Linux ever be a cash cow?" & real reas by Anonymous Coward · · Score: 2, Interesting

    Until the SuSE team learns what the term "regression" means in the software QA/QC arena and
    learns to do Regression Testing, so that the YaST2/Patch RPM debacle is eliminated in SuSE 10.1,
    no, Linux will NEVER be a cash cow for them.

    I've been a loyal SuSE Professional customer for years, buying the retail box at retail in a
    CompUSA, just to make sure that both CompUSA and SuSE get the revenue from it and are encouraged
    by retail sales. Yeah, I could download and burn the bits for next to nothing, but I am willing
    to support a worthwhile competitor to Red Hat, just to keep everybody on their toes.

    But for them to break the YOU functionality in SuSE 10.1 AND NOT FIX IT FOR FCS is INEXCUSEABLE !!

    I worked for many years for a major UNIX supplier, and that sort of issue was called a
    SHOWSTOPPER bug and it meant STOP THE SHOW.

    The fact that they refused to include updated versions of stuff like hplip and k3b is also fairly
    short-sighted and stupid, but accurately reflects a lackadaisical attitude about product quality.

  7. What a load... by WindBourne · · Score: 4, Insightful
    But can Linux ever be a real cash cow?

    of crap. Linux distros are already making money and growing. The real issue is wether a distro can become a monopoly like MS. And the answer is no. That can never occur due to the GPL.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:What a load... by bano · · Score: 2, Insightful

      Actually a distro can become an monopoly of sorts even with the GPL,

      BigDatabaseVendor: I vote we exclusively support DistroX
      BigMiddlewareVendor: me top me too
      BigIntegrationVendor: Yep
      BigDatabaseVendor: We also have to strongarm or buy out our competition
      DistroX: We need exclusive OEM rights from a DudeYourgettingahardwareVendor and OverPricedBlueBoxVendor.
      All: $$$$$

      You are always free to make whatever work on whatever platform you wish if you have the source, but $upport is required for the PHB's and you don't get that $upport safety blanket they insist upon if your not running DistroX.

  8. Heads will roll by Billosaur · · Score: 4, Insightful

    More on the shakeup.

    We're seeing this more now (think Sun and SGI) -- companies that are underperforming making changes at the top in the hopes of generating new intitiatives and pumping up the stock price. It remains to be seen if all the bloodletting will lead to any marked improvement in the short term -- new execs have to deal with things as they are and try to untangle the mess left on their desk before they can move forward.

    --
    GetOuttaMySpace - The Anti-Social Network
    1. Re:Heads will roll by am+2k · · Score: 2, Insightful

      Well, but firing a few engineers and keeping the management that created the problem in the first place would be even worse. At least they really get rid of those that are responsible.

    2. Re:Heads will roll by Ryan+Amos · · Score: 2, Insightful

      Many of these companies that are failing are doing so because the "mid-size business server" market that once ran Netware, or on Sun or SGI hardware has moved to commodity PC hardware with Linux. A mid-size Oracle database in 1995 was runinng on Sun hardware under Solaris, now the reccomended platform is RedHat on an Opteron.

      These companies are trying to adapt, but the fact is that their market niche was absorbed by the commodity PC market (pentiums and opterons,) which is low-margin and highly competitive. A lot of them are trying to move into this space and they just can't compete with Dell or HP on price because of their corporate sales model. Sun sends in 2 or 3 experienced technical sales guys to try and sell you something. Dell hires kids fresh out of college who take phone and internet orders.

      These dinosaurs are pretty much doomed to extinction in my eyes. Sun does make some good Opteron boxes, but that niche will disappear as well once Dell starts selling 4-way Opterons. IMO Sun needs to get out of the hardware/OS business entirely and focus on their products that are doing well and have a future. Solaris is dead in the water and

  9. It's about damn time... by Anonymous Coward · · Score: 5, Insightful

    All I can say is that I've worked with both of these men in the past, and Ron is clearly a better choice to lead Novell. Ron brings something very unique to the table - a deep understanding of the technologies Novell is focusing on. Additionally, he has a very clear vision of how to execute on their corporate strategy.

    If any of you had ever seen Messman speak at LinuxWorld, BrainShare, or other events, you should have recognized that he was just reading words off of a sheet of paper (or teleprompter). He didn't seem to exhibit even the most basic of understanding when it came to either major Novell product focus (Identity Management and Linux/Open Source). Additionally, he wasn't the best public speaker. Don't get me wrong, he was a great guy - just not the type of person to reinvent a company like Novell.

    Novell has some great ideas, better products, and a cohesive strategy. Ron Hovsepian is the type of person to leverage these strengths and bring Novell back to the position of strength it once enjoyed.

    1. Re:It's about damn time... by demachina · · Score: 4, Funny

      Ron is also the better choice because he reads and posts on Slashdot even if it is an AC. Thanks for sharing your take on this with us Ron :)

      --
      @de_machina
    2. Re:It's about damn time... by yancey · · Score: 2, Interesting

      I'm glad to hear that sort of knowlegable and encouraging talk and am tired of companies who appoint a CEO only hoping to increase the stock price, with no idea of what the company is really about. Novell does have some very good products (eDirectory and Identity Manager are excellent) and moving the existing services from NetWare to Linux, especially taking advantage of 64-bit memory access) should be accelerated (in my opinion). It's obvious that there will never be a 64-bit NetWare and the NetWare platform is being asked to do too much, much more than was originally intended -- causing NetWare to be unstable (many memory leaks), in my opinion.

      Moving to Linux and focusing the development resources on providing services is a good strategic direction. I'm also pleased that Novell has decided to make the Linux desktop a viable solution for those who are currently using Windows. Redhat, SuSE, and others have never made Linux as accessible as say Apple has done with Mac OS. I hope Novell will finally be able to take the lead and finally bring Linux desktops into the mainstream (not just in the workplace). When you look around, Windows is the only non-unix-based OS with any significant market share. Resistance is futile, Microsoft! Your days are numbered! Unix will prevail! :-)

      --
      Ouch! The truth hurts!
  10. Redhat and Novell by codepunk · · Score: 4, Insightful

    Well at least Novell has a little focus on the desktop they stand half a chance of surviving. RedHat on the other
    hand is gonna find themselves in serious trouble quickly I am thinking. When RedHat decided to take focus off their desktop to capitalize on the enterprise market it was a smart thing to do short term to generate more revenue. Now enter ubuntu, hell I don't know many admins or various desktop users that don't use ubuntu for their desktops. The net effect of that is I now prefer it as a serving platform also. RedHat sold their soul for quick money but it is going to kill them in the end. Same goes for Novell, you have to have a good strategy front to back.

    --


    Got Code?
    1. Re:Redhat and Novell by C_Kode · · Score: 4, Insightful

      See, I disagree somewhat. While Redhat's Desktop (see Fedora) isn't as great as Ubuntu or even some others. The one thing it does have is RedHat itself. All I beleive Redhat has to do is start offering corporate support for a version of Fedora on the desktop. Say one version behind current. (FC4) RedHat isn't stupid. They are where they are because they (just like Dell) did what the corporation wants, not what the home desktop user wants. I doubt RedHat couldn't spit out a lean corporate desktop in a short span of time based on Fedora. Hell Fedora is where RHEL gets most of it's features.

    2. Re:Redhat and Novell by twocents · · Score: 2, Insightful

      I disagree. The Fedora project is well supported and has been promoted by Red Hat corporate in a big way. Some may prefer other distros, but Red Hat hasn't dropped the ball, in my opinion. Also, while you might prefer Ubuntu, you sound as if you set up your own machines at work; this means you would not be a Red Hat customer anyway.

      Lastly, there currently is very little money in the Linux desktop market. Red Hat is involved in the enterprise not because it's a short term solution, but because that's where there is 'real' money that allows a company to, well, be a company.

      If desktop preference drove server preference, wouldn't everyone be using OS X Server?

    3. Re:Redhat and Novell by Erwos · · Score: 4, Insightful

      Yeah, just like Debian, Gentoo, Mandrake, and Novell have all killed Red Hat, right? I've been hearing for years about Red Hat's impending demise at the hands of new distro X, and so far, so good - for Red Hat.

      -Erwos

      --
      Plausible conjecture should not be misrepresented as proof positive.
    4. Re:Redhat and Novell by DigitalPenguinDude · · Score: 2, Interesting

      I love SuSE and use both SuSE and Red Hat Enterprise at work. I work for a large defense contractor and we had to throw out SuSE because we could not make it DoD NISPOM chapter 8 compliant. This is required for computers which operate in classified environments. Its failure - PAM configuration and auditing. PAM configurations which support NISPOM 8 would crash on SuSE. The snare kernel (to support auding requirements http://www.intersectalliance.com/projects/Snare/) for SuSE Pro (9.3) is not available. I could not get the patch to apply to thier kernel. RHEL4 could be made compliant, easily. Obviously Red Hat is working closely with customers and SuSE is not.

    5. Re:Redhat and Novell by Etyenne · · Score: 2, Informative

      Helllllllo ?!? Red Hat already have a desktop product, and always had. Red Hat Enterprise Linux WS -> http://www.redhat.com/rhel/details/clients/

      It's based on Fedora Core 3, just like the rest of the RHEL 4.

      I hate to be the Red Hat shill, but damn, there's a lot of uninformed opinions about Red Hat going on around here.

      --
      :wq
    6. Re:Redhat and Novell by LnxAddct · · Score: 2, Interesting

      Completely understood and agreed. All I'm trying to get at is that the only advantage Ubuntu seems to have is that it fits on one CD. Fedora does everything else it does, and comes with a lot more software if you choose to install it. I just don't get how a distro fitting on one CD makes it better than a distro that comes with more functionality. You can't just say one is better than the other. They are both just as easy to use (for regular users and advanced users), one just comes with more software by default and arguably a little more thorough integration. So making the statement that Ubuntu is better seems ignorant at best. To me a "whatever fits your needs" approach is better. I've honestly given Ubuntu a good long try and many things about it just didn't click well with me. I guess I'm a "power user" so Fedora fits me better, but I guess I'm tired of hearing the Ubuntu camp call out other distros when they have nothing to stand on.
      Regards,
      Steve

  11. Re:Return of Hubert Mantel? by Anonymous Coward · · Score: 2, Insightful

    Uhm..

    1. Why should they do that? There are plenty of good open source or otherwise free compilers out there. I fail to see what Novell can gain by creating a compiler for any language that already exists (or creating a new language for that matter)

    2. The embedded market is a good place to look for growth, but I don't think those devices will, in general, make good use of a directory server. If they jumped into providing embedded OS's, and could outcompete companies like montavista, could help their cashflow.

    3. Never hurts to have a program running in as many places as possible, but I doubt they will do it since they are putting all their energy into linux.

    4. They are in the state they are in for major tax breaks and so forth.

  12. Re:Return of Hubert Mantel? by iccaros · · Score: 2, Informative
    Write [or purchase] an in-house COMPILER!
    never used mono or monodevelop I see. both are novell children
  13. Re:Return of Hubert Mantel? by thebdj · · Score: 4, Insightful

    So let us address a few shall we:

    1) Redhat, who I am pretty sure is the leading Linux distributor, does not have their own C/C++ compiler. The responsibility for a compiler does not really fall on the software makers so much as it should fall on the chip makers. Look at the vast majority of *nix systems with non-gcc compilers readily available. HP-UX, the main commercial compiler is available from HP, who either developed or help develop both the PA-RISC and Itanium chips their OS runs on. The same is true of Sun Solaris, though you can freely acquire Sun Studio 11 now to do the majority of this work for you, once again they are the ones with the chip, UltraSparc in this case. Repeat for AIX. There are also Intel based compilers available for their various chips on various platforms. None of the makers of the Operating Systems does not have some hand in the chips as well.

    2) For all we know they are.

    3) Sort of like 2, except let them work the bugs out in Linux first.

    4) They do still have offices in Provo. They just learned that none of the good upper management and executive people wanted to live in a) One of the whitest and non-diverse areas in the country and b) The religious (and political, and social) conservative capital of the US. Your statement is insane. So every company based in Silicon Valley is just a moment away from death? Btw, I do not mean to sound like I am flaming on Utah, but it is a valid complaint that it is a tightly conservative area and not very diverse either (85% white, 9% hispanic).

    --
    "Some days you just can't get rid of a bomb."
  14. Software no longer a cash cow. by LWATCDR · · Score: 4, Interesting

    This is a problem that the software industry has to learn to deal with.
    Software doesn't wear out.
    Microsoft knows this, that is why they are trying so hard at linking Windows to a single machine. When the computer dies or is replaced you buy a new copy of Windows. How many people have bought WindowsXP over and over?
    How many people are still using Office2000 because it really is good enough?
    It is getting to the point where new features are not worth cost of buying an upgrade.
    In the end software companies will have to become service companies. Red Hat knows this, I think Novell knows this. It is the support contracts stupid. Give them the software but charge them for support.

    --
    See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    1. Re:Software no longer a cash cow. by hackstraw · · Score: 2, Insightful

      In the end software companies will have to become service companies.

      The problem is that even if you pay your hard earned cash for "support", you get some bozo who knows less than I do, and usually the "solution" is for them to blame the hardware or anybody else they can blame.

      I find that OSS mailing lists are better in that you are in contact with the actual developers who know the guts of the code in question. AND!! Its free!

      Once you pay for "support", the best thing I've ever received is a person who is good at calming me down so I don't kill somebody (possibly them :)

  15. Re:Return of Hubert Mantel? by soren42 · · Score: 2, Insightful
    Take a long, hard look at the embedded market. NDS for QNX, NDS for VxWorks, NDS for Sybian, NDS for iTunes, etc, etc, etc.
    Let's ignore for a second that it's eDirectory now, not NDS...

    I think you meant to say "NDS for Symbian", not Sybian. Although it is much funnier your way.
    --

    "Adventure? Excitement? A Jedi craves not these things."
  16. SUSE is a has been distro by supersnail · · Score: 3, Interesting

    I recently crashed the disk on my laptop while I was on the road. I needed the machine back again quickly so I got a new hard drive, couldnt get hold of the recovery disks easily so I popped down to the local computer store and had a choice of Mandriva or Suse.
    Suse was more expensive but I had previous experience of version 6.0.
    On the whole the experience is rather disapointing. The basic Linux stuff works just fine
    but the suse extras particularly YAST can be a real pain.
    e.g. You double click on an .rpm file and it fires up yast software install which is nice, except that yast cant find the file as it deals in package lists and not rpms.
    e.g. It keeps shifting the ethernet and wireless adapters between eth0 and eth1 depending on what was
    active last. So you need to keep amending your wireless signon script (which you will need as yast gets you a wireless connection but no DNS server.)

    The web site is now just abysmal it is 90% support for Novell legacy products with the suse support hidden in nooks and crannys which is a pity as suse's online support used to be excellent.

    --
    Old COBOL programmers never die. They just code in C.
    1. Re:SUSE is a has been distro by molarmass192 · · Score: 3, Insightful

      All moot points in SuSE 10.1 since 10.1 ships with Network Manager to handle your wireless sign on scripts and augments vanilla RPM with YUM/RUG. Do you think ANY boxed distro would have fared better ... doubtful!

      --

      Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws-Plato
    2. Re:SUSE is a has been distro by filesiteguy · · Score: 2, Insightful

      Bingo! SuSE has always been a good distribution. I didn't use it way back when (I was a Mandrake guy.) but always heard of it.

      SUSE 10.1 is a very clean distribution and a worthy successor to the line. Thanks to Andreas, it now includes Novell's ZenWorks updater which takes the pain out of updating software from non-official repositorys (apt, yum, yast, whatever) and is a beautiful feature. I haven't put the system on my notebook (running 10.0) yet, so I don't know if the wireless/wired bug has been fixed.

      Yet, Novell has - in my mind - a history of shooting itself in the foot and underperforming in the marketing department. In fact, I cannot even find a marketing banner right now for SUSE 10.1 to display on my websites. I remember when Novell came out with Netware 4.0 as the "great upgrade" to 3.12, which I was installing on many clients' systems. No matter what the actual techical merits of Directory Tree over Bindry, it was destined to fail because Novell did a terrible job of marketing.

      Same goes for SUSE - they simply don't know how to market it. Let's just hope they don't kill it off too soon! I might have to switch to FC or Ubuntu or another distro with which I'm unfamiliar.

  17. Cash Cow? It's a Choice by grahamkg · · Score: 3, Insightful

    I saw the comments re: v10.1, and yes that's a blot. It's only a minor one. I too buy SuSE, and have done so as long at least as long as I've been a /.er. ^_^

    If Novell wants to do well, they could look at the Microsoft model for the Windows Logo Program. "Designed to Run SuSE Linux". What a concept. The day machines are sold to Mom and Dad running Linux is the day when it can be a cash cow.

    --
    Graham
    Linux - Fast Pane Relief
  18. Re:Return of Hubert Mantel? by Lendrick · · Score: 2, Funny

    I think you meant to say "NDS for Symbian", not Sybian...

    Hmmmm... Imagine a Beowulf cluster of those. That'd be one noisy server room.

  19. Shark attack by frenchguy73 · · Score: 2, Interesting

    Hah hah, this is really funny. Hovsepian is such a shark, he's been manipulating people at all level for this purpose only. Not that Jack was any better (he was clueless about the product, direction and Linux) but the new CEO is only interested in his own carreer, not the company, nor its employees. Novell is even more borked now than it was after the Suse acquisition (an all time high). After the tumultuous Suse/Ximian in fighting (KDE vs Gnome, SLUX vs Groupwise vs Hula, Red Carpet vs whatever the Suse thingie is called, SUSE management vs Ximian management), it's a new year of failure for Novell. I hope Mono & Hula get out unscathed.

  20. Re:Novell Continues to Circle the Drain by yancey · · Score: 2, Interesting

    Novell still has a lot to offer. Just one example is Identity Manager, which synchronizes data between different kinds of systems in "real-time" (event driven). It can handle just about any type of directory service (eDir, AD, or LDAP) and any sort of database (Oracle, MSSQL, MySQL, Sybase, Postgres, etc.). It can synchronize accounts and passwords (bi-directionally with eDir, AD, and NT domains) to many systems, including various operating systems. Infoworld recently ranked it the best such solution available (and that was the older version). The product can also handle provisioning of resources automatically. The tools used to manage this very complex software make it about as simple and easy as it possibly could be. This sort of software is very beneficial to larger companies with many different types of systems that all need to be synchronized in some way.

    --
    Ouch! The truth hurts!
  21. A positive outlook for RedHat from Barron's by lotzmana · · Score: 3, Informative
    Very pertinent to this discussion is a piece from the financial newspaper Barron's which was posted yesterday. It is a positive review of RedHat's business model as one being based on subscriptions and not one time sales. Here is an excerpt from the article:


    "But I think the best opportunity is to target companies offering software as a service."

    Worldwide software sales should grow 8% this year, which, while down from 8.7% last year, nonetheless proves that "there is clear evidence of pent-up demand for new software technology," says Joanne Correia, a software analyst with Gartner Inc. in Stamford, Conn.

    But software spending increasingly goes to the top four vendors -- IBM, Microsoft, SAP and Oracle -- whose combined share of global software spending jumped from 33.5% in 2000 to 36.8% last year, estimates Charles Di Bona with Sanford C. Bernstein & Co. in New York.

    So to get a leg up, small young vendors are changing the rules of engagement. They are eschewing the multimillion-dollar one-time contracts for software and instead letting corporate buyers pay for product updates and support on a year-by-year basis.

    "We're seeing a shift in the economic balance," in software sales, says Correia's colleague, Simon Hayward. "From this up-front cost of software to an annuity model, with money shifting to firms that are service providers."

    Of Red Hat's $278 million in sales last year, 82% was from subscriptions, which the company realizes over the life of a contract of one to three years. Oracle still gets over a third of its sales the old way.

    Red Hat's sales should rise 35% this year to $375 million, far above the 15% rate expected for Oracle, according to estimates from Goldman Sachs analyst Rick Sherlund.

    Subscriptions should make Red Hat's sales -- and its customers' expenses -- more predictable, which is good.

    "You're able to match your revenue model to the way that you provide that product to your customer," notes Ursillo.

    "If you are constantly providing them with value as opposed to a one-shot deal, then you can charge them on a regular basis," he says.

    What's more, by acquiring subscribers, rather than one-time buyers, Red Hat can milk its customer base by offering more and more new programs.

    In addition to the Linux operating system, Red Hat now provides software to let companies take transactions over the Internet.

    "They are in the first inning of a very big ballgame," says Steven Ashley, an analyst with Robert W. Baird & Co. in Milwaukee.


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  22. Blame the ones responsible, please by hesiod · · Score: 3, Informative

    > It looks like [Messman's] been blamed for Novell's poor performance in the Linux space versus Red Hat.

    Well, I'll bet they were hoping their GroupWise software being ported to Linux would have helped. And it would have, had they done it properly. I tried three times to get that damned thing running on SuSE Enterprise 9, and it's the biggest pain in the ass. I've set up Email servers before with no problem, this was absolutely horrid. At first I blamed the product in general, but after installing it on Windows 2003 I realized that it was actually incomplete! The NetWare client for it does not exist (at least on any of the CDs they gave us -- which were incomplete in & of themselves), and trying to actually manage the thing can be a huge pain in the ass.

    They still sell it at full price and still charge $300 for a single support case... It's like MS taking Vista as it is now and selling it as a fully-working product. It is not, and I would have been highly pissed off had our software license not covered the GroupWise software for whichever of the three platforms (Lin, Win, NetWare) we ended up using.

    So anyway, unless Messman forced the product out before it was done, it was not his fault. Of course, Novell does more than just Email servers, so this may be only a very small part of it.

  23. The problem is.. by Trendkill_84 · · Score: 2, Interesting

    where is the PR machine? sure, WE know novell has linux, and WE know why linux is good, but where the heck is the PR for this product?

    the reason why microsoft does so well has nothing to with their distrobution or the actual product, it has everything to do with getting the product out there, SHOWING people why they should buy linux.

    i mean god, sure, ive seen advertisements for novell suse in computer magazines, slashdot etc, but what about at football stadiums (microsoft have a advertisement at the melbourne cricket ground, our biggest stadium, stating "microsoft windows xp: be whatever you want, be loyal" etc..) and places like shops where people would just wonder what the pc product is that promises stability, easy use, and why do they have a lizard as a icon?

    in other words, the reason why novell isnt doing well with selling linux is that they are targeting the wrong audience and need to get their name and brand out there, simple as that. microsoft have that downpat.