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Why Microsoft Can't Afford To Let Novell Die

geek4 sends in an analysis indicating that Microsoft may have the most to lose if hedge-fund operator Elliot buys Novell. (The eWeekEurope piece is based on a longer and geekier writeup by Andy Updegrove on how the mechanics of unsolicited tender offers can play out in the tech world.) To avoid meltdown or asset-stripping, Novell can try and find a preferred bidder — a company with some interest in running Novell as a business, and preferrably a tech company. Or another company may make a move independently. But who might that be? A couple of analysts have suggested IBM, Oracle, or SAP. These all have problems... Microsoft is in a similar category, with one added problem. ... Microsoft has staked any open source credibility that it has on Novell's SUSE distribution. If Novell falls to bits, then Microsoft's efforts to gain open source cred pretty much disappear with it. It's something that would have been impossible to imagine a few years back, but if we're looking for someone to prop Novell up, Microsoft would now be a prime candidate."

4 of 215 comments (clear)

  1. Re:Microsoft the tar-baby by GNUALMAFUERTE · · Score: 3, Informative

    Yes there is such a thing as bordering the illegal.

    When something is per se illegal, but a team of lawyers with questionable ethics find a way to phrase it that somehow circumvents the law, that situation is certainly in the border of the illegal.

    When something goes against the spirit of the law, but steps carefully over regulations, and is "technically" legal, that is bordering the illegal too.

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    WTF am I doing replying to an AC at 5 A.M on a Friday night?
  2. Re:Microsoft the tar-baby by Jah-Wren+Ryel · · Score: 3, Informative

    They did. But then Microsoft owns them at least partially.

    I'm too lazy to google it up, but I'm pretty sure they unwound that a couple of years ago.

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    When information is power, privacy is freedom.
  3. Re:IBM should buy them. by Bruce+Perens · · Score: 4, Informative

    The BSD I am talking about is a Caldera release of the Unix source code under the BSD license. It's well-documented. Regarding USL v. BSD, the key part is known, which is that Unix was released to Berkeley and the BSD users without a proper copyright statement, and before the Bern Copyright Convention was ratified by the US. At that time material without a proper copyright statement was in the public domain.

  4. Re:Microsoft the tar-baby by segedunum · · Score: 4, Informative

    Back in the days, SuSE was in the red for $50 000 000 and survived because IBM injected them cash.

    Not particularly accurate. It's not unusual for such companies to take some time to break even, and the same was true of Red Hat. The $50 million injection was purely as part of the Novell deal and no they weren't in the red to that figure. There wasn't a second payment that I'm aware of. Novell have also only just about, with some creative accounting, managed to make their Suse Linux business break-even. Would Suse have done better by themselves? It's a matter of some debate.

    Apart from that, they alienated every (popular) community gathering around them long before the novell buy out by not freeing YaST, their management tool. The thing is, they tried to get some money from the people using their distro before you could download it. Which didnt work either, which leds to the $50M loss. (Others tried to not get money from their users, and it did work).

    You're going to have to qualify that statement and set of assumptions with some facts I'm afraid. Trying not to make money from something to get money is a contradiction in itself. Many open source companies around Linux have tried it and they've burned their VC money and went to the wall. It's a stretch to assume that because Suse didn't open YaST it was in trouble, but it would have probably had to have happened eventually. They didn't open it purely because they had some competitive advantage at the time. It was hardly a reason for people not giving Suse money for the distro, which is ultimately what counts.

    Additionally, Novell has done the very thing you accuse Suse of doing - and it has cost them. They haven't opened Groupwise or any of their other archaic pieces of software and as such no one was using them. That was the real problem at the time Novell bought Suse. That's sometimes even worse than people not paying for your software! They've also retro-fitted Novell on to effectively a proprietary Suse Linux in OES which has not only alienated Linux users but has also completely alienated and failed to attract existing Netware users - who've usually gone to Windows Server. They've handled that so badly it's unreal.

    Apart from that, as for the grass-roots engineering target, it is an entranched place where you find people either deeply tied to debian or to red hat. They don't give a damn about anything else, even if it's a nice piece of engineering as SuSE has always been.

    I'm not entirely sure what that means, but that sounds like a problem with Novell's management and leadership.

    AS FOR NOVELL, once it bought SuSE, they freed everything that wasnt already free in SuSE and then they freed some NOVELL software too.

    They freed some Suse and Novell software they didn't care about, and much of the Novell software they did free like Hula fell by the wayside very quickly. The important software that they should have open sourced and found a business model around like Red Hat's to get people really using it again they didn't, and it's all been left to rot and stagnate. Novell's revenue has steadily declined since just as it did before the Suse takeover.

    They hired people, they had for example 3 engineers on the ATI drivers, they have developed new distribution tools like the build system and the SuSE studio which are excellent and innovative.

    What money have they made off that? Their much touted 'Enterprise Linux Desktop' is absolutely nowhere to be seen. Suse Studio is possibly the most different thing they've done, but again, they need to turn that into revenue. They just haven't made the money from Suse that they should have done.

    Also there is a text online from one of SuSE founder that says that after the buyout, the 5000 NOVELL people listened to the 500 SuSE people and got along with the pro