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Novell's Linux business spikes since Microsoft deal
PC World ^ | Linda Rosencrance (Computerworld)

Posted on 09/27/2007 8:13:38 AM PDT by N3WBI3

Novell's Linux business has soared 243 percent since last November when the company signed its controversial deal with Microsoft.

"The affect on sales year over year, for Novell's first three quarters of our fiscal year, which ends Oct. 31 -- our Linux business was up 243 percent year over year," said Justin Steinman, director of marketing at Novell, who, along with executives from both companies, spoke at a program hosted by the Massachusetts Technology Leadership Council.

And, that growth doesn't seem to be short-lived.

"We're continuing to see above market growth year [over] year and that clearly has resulted in the 243 percent Justin alluded to," said Susan Heystee, general manager, Global Strategic Alliance, at Novell.

Last November, the two companies struck a collaboration deal under which Microsoft is supporting SUSE Linux on systems that run Windows to make it easier for users to incorporate both operating systems. As part of the deal, Microsoft is offering sales support for SUSE Linux and will also co-develop technologies with Novell.

Steinman said part of its growth was directly related to the Microsoft deal, adding that Novell has billed more than US$100 million in business through its Microsoft relationship. He added that the growth was also due to the halo effect of the arrangement.

"When we're out there competing with Red Hat, [our salespeople] are saying, 'Our Linux is recommended by Microsoft,' and customers that already have a Windows investment say it seems to make sense to pick the Linux that works with Windows."

Microsoft, however, wasn't quite ready to declare financial victory.

Peter Rodriques, director of intellectual property and Licensing at Microsoft, said he wasn't prepared to say that Microsoft has generated more revenue than it would have without the agreement with Novell. But he said he was declaring victory in terms of the partnership in general.


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: linux; novell; opensource
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To: N3WBI3

Getting personal already LOL. Top line increase of only 6% with a significant negative trend line, and still no suggestions from you on how to reverse it. What can they do, they’ve already started charging for everything they used to give away for free, and dropped support for older products, what’s left? They keep talking about some new version, but they just announced it was delayed. Again. Was that the third, or fourth time now?


21 posted on 09/27/2007 7:51:37 PM PDT by Golden Eagle
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To: Golden Eagle
Getting personal already LOL

Not an insult and not personal, sorry if you took it as such. My point is that to look at one aspect of a financial report and say *uh ohhhh*, especially when 7% sales growth over quarter is pretty dang good is just pointless. Its just looking for bad news in what analyst consider to be a very good report.

Remember when Redhats stock fell from 22 to 18 over the course of a few weeks and you very frequently posted it as proof positive red hat was failing? Well now you're telling me its not the stock price its the *quarter* over sales. If there next report shows higher over quarter sales but lower operating cash flow will *that* be the sign you have been waiting for?

You have been wishing ill on Red Hat for a very long time and your analysis of this report seems colored by that. Maybe thats why every other expert is saying this is a great report.

"What can they do, they’ve already started charging for everything they used to give away for free,"

I dont get this comment, Redhat ceased releasing their free distro near the end of 2003 here is what their stock has done

They are a far healthier company now than they were 4 years ago and htis is true across many measurements.

22 posted on 09/27/2007 8:26:32 PM PDT by N3WBI3 (Light travels faster than sound. This is why some people appear bright until you hear them speak....)
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To: N3WBI3

I’ve simply shown on a thread about Novell’s increasing sales figures that Red Hat has decreased from previous levels, which would hardly be a surprise but something you seem to be upset with. Will Novell continue to grow and Red Hat continue to drop off? Who knows but those are the current trend lines, and Red Hat faces several other competitors who make free copies of their products for resell as well. I’ve asked you several times what can they do to regain some positive momentum but all you continue to do is talk about the past, maybe that’s all they can do but that’s not going to win them any new customers.


23 posted on 09/27/2007 8:43:26 PM PDT by Golden Eagle
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To: Golden Eagle
I’ve simply shown on a thread about Novell’s increasing sales figures that Red Hat has decreased from previous levels

Redhats levels have not decreased... The rate of *increase* is less than the previous quarter.

Redhats year over profit is huge, and if quarter over was more important than year over their would, for red hat, be reason to worry. But not long ago you were laughing at Novell when they purchased Suse Linux I take the competition as a good thing.

24 posted on 09/27/2007 9:41:03 PM PDT by N3WBI3 (Light travels faster than sound. This is why some people appear bright until you hear them speak....)
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