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.
OSS Ping
And Red Hat has hit a wall according to their recent quarterly results, gross revenue was only up 7% since the last quarter. Not bad but nothing like they were used to.
Im not quite sure where you are getting your numbers some highlights include:
http://www.thestreet.com/s/profit-climbs-at-red-hat/newsanalysis/techsoftware/10381371.html?
Red Hat (RHT - Cramer’s Take - Stockpickr - Rating) posted second-quarter earnings in line with Wall Street expectations as profit grew 59%.
The Raleigh, N.C., maker of Linux open-source software reported revenue of $127.3 million, nearly 28% over the prior year’s quarter of $99.7 million.
Earnings per share grew to 9 cents on net income of $19.1 million, from 5 cents, or $12 million, in the prior year’s period.
operating cash flow, excluding items, was up 43% year on year and 22% sequentially, to $63.7 million, while deferred revenue rose 33% to $377 million.
Red Hat has scored at least one seven-figure JBoss deal in each quarter, he added.
—
Still all this aside Novell increasing their footprint is a good thing for customers, good news all around..
I agree with one exception - I get the distinct impression they've shifted their technical support emphasis that direction as well, which is bad news for those of us who are still trying to hold Netware implementations together with spit and baling wire while management prepares the migration plan. :-(
LOL Sounds like the shop I work at now and in addition to the *nix environment I am taking care of a *very* old DEC OpenVMS box..
I was wondering about that RHT figure, but then again, consider the source.
Redhat is one of those companies with an extremely high beta stock its 9right now its a little over one and a half thus when it swings down a bit ORT is quick to point at it as some kind of weakness with the company..
Like most Linux news Red Hat’s recent quarter was announced with great fanfare, while only one source reported the real story behind the numbers. Total revenue was only up 7% from the last quarter:
http://biz.yahoo.com/bw/070925/20070925006454.html?.v=1
Like anything else in business numbers over previous quarters are insignificant when compared to year over numbers...
LOL You mean Redhat?
Spin it any way you want, but on average Red Hat’s numbers look to be their weakest ever, quarterly or yearly. I just saw a story from 2003 that showed them with an 80% sequential quarterly increase in sales, obviously those days are long gone since the current figure is 6%.
Ok Ill look at year over numbers like *everyone in the industry does* and you can cherry pick numbers. Just like oes, computers, cars, and countless other items sets of software have their sweet time of year for sales.
Red Hat’s numbers look to be their weakest ever, quarterly or yearly
Are you sure you want to stand by this? Ill give you a chance to back out now.. 2k3 did you say? isn't that about the time red hat stopped releasing their free operating system sans support and went to only the subscription model? gee I wonder why they had such an increase then (I seem to remember this because I had changed Jobs recently)? Context, like always, is your worst enemy..
Worst ever you say? (This is from 2000) "Not including the adjustments financial analysts factor in, Red Hat reported a net loss of $15.7 million, or 10 cents per share, compared with $4.8 million, or 7 cents per share, a year ago."
Eeek I did not close a tag
GE: “Spin it any way you want”
Ok Ill look at year over numbers like *everyone in the industry does* and you can cherry pick numbers. Just like oes, computers, cars, and countless other items sets of software have their sweet time of year for sales.
GE:”Red Hat’s numbers look to be their weakest ever, quarterly or yearly”
Are you sure you want to stand by this? Ill give you a chance to back out now..
2k3 did you say? isn’t that about the time red hat stopped releasing their free operating system sans support and went to only the subscription model? gee I wonder why they had such an increase then (I seem to remember this because I had changed Jobs recently)? Context, like always, is your worst enemy..
Worst ever you say? (This is from 2000) “Not including the adjustments financial analysts factor in, Red Hat reported a net loss of $15.7 million, or 10 cents per share, compared with $4.8 million, or 7 cents per share, a year ago.”
Which is why you have to look at sales, to exclude all the under the hood fudging done by accountants. Only 6% increase in quarter to quarter sales for Red Hat, wonder what they'll start charging for this time, haven't they already tried to start charging for JBoss too?
Does this mean you want to stand by your statement that 7% total revenue increase is redhats worst ever?
I said on average, it looks that way. You said it wasn’t going back to when they gave Red Hat Linux away, which I’ll admit may be true. But since they started only selling Linux, when have sales only grown 6%? Obviously you’d like to attack me for pointing it out, but instead you should be asking Red Hat what are they going to do about it. What exactly can they do about it?
Yea sure if you ignore the year over profit of 59%, year over revenue of 28%, operating cash flow over year of 43%, The analysis of pretty much every business person, and the 5% increase in stock value after this report came out... Then yea on average it looks terrible LOL
But only a 6% increase in sales, tiny compared to the past. And that is the top line figure which can’t be fudged.
Yea sure if you ignore the year over profit of 59%, year over revenue of 28%, operating cash flow over year of 43%, The analysis of pretty much every business person, and the 5% increase in stock value after this report came out... Then yea on average it looks terrible LOL
GE would you dont have the background or experience to look at a the whole financial picture..
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.