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Novell deal good for Linux, bad for SCO
vnunet.com ^ | 06-11-2003 | Peter Williams

Posted on 11/09/2003 8:16:01 AM PST by AFreeBird

Analysts and industry experts comment on Novell's $210m acquisition of SuSE Linux

Novell's agreement to acquire SuSE Linux for $210m is good news for the Linux community and shows that the firm is unconcerned about the fear, uncertainty and doubt surrounding Linux following SCO Group's legal action against IBM.

And IBM's investment of $50m in Novell as part of the deal has meant that the distribution and support gap which SCO left in the United Linux consortium has been plugged.

"This really is very, very good news for Linux," Gary Barnett, principal analyst at Ovum, told vnunet.com. "It's a very important move and will change the landscape of the world of Linux."

Reasons he gave included SuSE leapfrogging Red Hat in its ability to offer global support, and the huge but diminishing Novell NetWare user base which now has a migration path to Linux.

Novell chairman Jack Messman confirmed that the Linux acquisition was partly a response to customer demand for open standards-based computing, something lacking in NetWare.

"This means that an enterprise can have a Linux strategy that takes it into the core, into the data centre," he added.

"It is no longer on the periphery and gives users access to a growing number of applications with a lower total cost of ownership [TCO]."

Gartner analyst Andy Butler commented: "Novell has a totally integrated suite of products with NetWare at the bottom and a layer of products on top.

"It could substitute NetWare with Linux and offer a totally integrated stack. It's down to whether they offer the two [SuSE and NetWare] in parallel or substitute NetWare."

While some analysts dispute Messman's TCO claims, their arguments - such as the cost of trained staff and support - may be mitigated sooner rather than later.

Butler Group senior analyst Mike Davis saw IBM's investment as significant because the deal would diminish SCO's impact on Linux.

"SuSE became more vulnerable after SCO, which has worldwide offices, pulled out of United Linux," he explained.

"IBM has a great need to maintain viable and strong [Linux] distributions. So a bit of me says this is directly as a result of SCO's actions."

Barnett also felt that the deal showed SCO as no longer a threat. "Novell must have had its lawyers pore over the deal. It has plainly taken a judgement that SCO's case has no merit. SCO is toast," he declared.

Butler added: "Novell will have to convince the more evangelical elements of the Linux community that what it is doing with SuSE is nothing like what happened with Caldera. Novell has made its position clear that it is part of the anti-SCO lobby."

In August, Novell purchased server and desktop open source software provider Ximian and is preparing a Linux desktop based on Ximian's Gnome desktop. SuSE brings its Openexchange competitor to Microsoft Exchange into the Novell fold.

According to Chris Stone, vice chairman at Novell, the firm now has most of its long-planned product portfolio in place.

"The goal is to have a complete server-to-desktop implementation. With this acquisition we're almost there," he said.

Investors gave the deal the thumbs-up with shares in Novell having risen 18 per cent on the Nasdaq exchange by close of trading Wednesday.

Additional reporting by Rob Jones and Ian Lynch.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: computing; linux; opensource; sco

1 posted on 11/09/2003 8:16:02 AM PST by AFreeBird
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To: AFreeBird
SUSE has always been oriented toward KDE. Does that continue, or does it migrate to gnome?
2 posted on 11/09/2003 8:22:26 AM PST by per loin
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To: per loin
Last time I tried SuSE, I got the impression that it was geared towards GNOME, and that Mandrake (which I use now) was geared more towards KDE.

But that's been a while, and I haven't seen later versions of SuSe.

So in answer to your question: I don't know.

Personally, I like KDE better

3 posted on 11/09/2003 8:28:42 AM PST by AFreeBird (your mileage may vary)
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To: AFreeBird
Interesting times for Linux. This, along with Red Hat's pending withdrawal from free distributions.

I do think Red Hat benefits more than SuSe. The freeloaders will abandon Red Hat and find another freebie distribution, while drawing more Enterprise customers.

SuSe - well, what can you say about Novell? I'll be taking a look at NetWare 6.5 and 7, but Novell is usually where great products go to die.
4 posted on 11/09/2003 9:02:15 AM PST by Doohickey (Hey, I need you to go down to the torpedo room and get me some tag line.)
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To: rdb3
I'd ping the penguin, but I thought I'd let you have the honor.
5 posted on 11/09/2003 9:04:22 AM PST by AFreeBird (your mileage may vary)
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To: per loin
SUSE has always been oriented toward KDE. Does that continue, or does it migrate to gnome?

Doesn't matter. Run whatever enviornment/manager you want. Install the libs and apps. for both and run them from whatever.

6 posted on 11/09/2003 2:28:26 PM PST by prolusion
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To: prolusion
Does matter. If both the major distributions focus on Gnome, development of KDE will lag.
7 posted on 11/09/2003 2:43:33 PM PST by per loin
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