Linux helps damper Novell's losses
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OS sales up 77 per cent year-over-year Novell narrowed losses in the third quarter, bolstered by the SUSE Linux business beginning to pull more weight.â¦
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NOVEMBER 15, 2004  - Novell Inc. last week began shipping a desktop version of Linux that is designed for business users and comes with a bundled set of open-source applications as well as technical support, training and consulting options.
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Novell is this week expected to spruce up a version of its Linux desktop aimed squarely at enterprise users. Built on the same core code base as Suse Linux Enterprise Server 9, Linux Desktop 9 is best suited
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Like clockwork You have to hand it to Novell for being consistent. The shrinking software maker has once again posted lackluster financial results - this time during its third quarter.â¦
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For a theoretically free operating system, Linux is -- and will continue to be -- a cash cow. A research firm sees a bright financial future for the OS.
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Plus: TiVo posts small profit...Novell reverses year-earlier profit...Lenovo posts 2006-07 net surge.
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Novell (Nasdaq: NOVL) is launching an internal reorganization to emphasize its Linux expertise, according to news accounts. By combining its Nterprise and Linux operations into one overall Platform and Application Service group, Novell will be able to better concentrate on the enterprise Linux market.
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Novell's SuSE software joins Red Hat as server option. Also: Is AMD in Dell's future?
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Novell's Linux business has soared 243% since last November, when the company signed its controversial deal with Microsoft, a company executive told a panel.
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Not since SCO has there been a company so reviled by the open source community as Novell following its deal with Microsoft.  Already there are some clear signs of the negative effects of that anger: senior coders have left the company; Novell has posted a loss for the most recent quarter; and there are calls for a boycott of Novell products â to say nothing of imminent changes to the GNU GPL that might well nullify the entire Novell-Microsoft deal.  Some people are rubbing their hands in glee at the thought of Novell crashing and burning completely, but such a development could actually turn out to be one of the worst things to happen to free software.
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(InfoWorld) - The release of Red Hat Enterprise Linux 5 in March should strengthen Red Hat's lead in the open-source software market and fend off challenges from Oracle, Microsoft, and Novell, an industry analyst said. After meeting with Red Hat executives Friday, W.R. Hambrecht & Co. financial analyst Robert Stimson wrote in a research note Monday that he is "confident that Red Hat will remain the premier Linux player despite recent competitive hoopla." Red Hat's stock price declined in October 2006 whenÂ Oracle announced it would undercut Red HatÂ on the price of support for Red Hat's open source Linux distribution. That was followed in November by news ofÂ a collaboration between Microsoft and Novell. Microsoft said it would work with the Linux distributor to make Windows interoperable with SUSE Linux. Microsoft said it will also help market SUSE to its customers. While those developments caused Red Hat's stock price to dip below $15 a share, from $27 before the news, they "have had little to no effect on Red Hat's underlying fundamentals," Stimson wrote. Red Hat stock closed Monday at $22.54. Hambrecht forecasts Red Hat to finish fiscal 2007, which ends Feb. 28, with earnings per share of $0.51 on revenue of $401.6 million, up from $0.39 a share on revenue of $278.3 million in fiscal 2006. Expected new features of Red Hat Enterprise Linux 5 include an integrated server and storage virtualization capability that should be competitive with industry-leading virtualization software from VMware, Stimson said in an interview. Red Hat 's virtualization software uses just 3 percent to 4 percent of a server's CPU to run, versus 20 percent or more for VMware, he said. That makes Red Hat better able to run multiple software applications on one physical server. Stimson considers the competition from Oracle and Microsoft/Novell "a nonevent so far" as he's seen little evidence that Oracle is winning support business away from Red Hat. Oracle did not reply to a request for comment. Stimson has seen a "backlash" in the open-source community to the Microsoft/Novell arrangement. He noted that all five members of a Novell software development team quit Novell after the Microsoft deal was announced, and four of them went to Red Hat. They were working on the Samba Project, developing an open-source file and print server software product than can run on a Windows operating system. "I think (Microsoft/Novell) is tainted now because I think they are violating [the] GPL," said Jeremy Allison, the fifth member of the team to quit Novell in December 2006. He went to Google but emphasized that he was not speaking for Google on this subject. GPL stands for General Public License, the contract that keeps open-source software open. Analyst Stimson said the Microsoft/Novell partnership has only strengthened Red Hat's position in the market because of the reaction from others in the open-source community.
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Solution providers last week said they do not expect the sudden departure of Novell vice chairman Chris Stone, who engineered the company&#39;s aggressive Linux push, to slow its Linux initiative.
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A number of the larger Linux developers like Red Hat and Novell are likely to back the plan, bolstering its uptake in the market. The agreement aims to ensure compatibility between Linux versions
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Growing importance of Linux in the enterprise is focus of event.
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InfoWorld - Red Hat and Novell will ratchet up their one-on-one competition in the Linux operating system wars next month when each company delivers significant upgrades to their respective server-based products.
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Business software maker Novell Inc.  posted a preliminary quarterly profit on Tuesday, bouncing back from a year-earlier loss when it took a $38 million restructuring charge.
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Despite financial and accounting problems at Dell Inc., Novell Inc. and Yahoo Inc., underlying faith in the software sector and a solid first-day performance on Riverbed Technology Inc.'s initial public offering indicate that the end of the year may yet reward IT investors.