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Re: Novell's Migrations from Netware to Linux

  • Subject: Re: Novell's Migrations from Netware to Linux
  • From: John Bailo <jabailo@xxxxxxxxxx>
  • Date: Thu, 14 Sep 2006 15:33:54 -0700
  • In-reply-to: <1158271657.675963.297110@m73g2000cwd.googlegroups.com>
  • Newsgroups: comp.os.linux.advocacy
  • Organization: The Texeme Construct
  • References: <1645972.mcUO8Xdk99@schestowitz.com> <1158245217.3430.0@proxy00.news.clara.net> <1158271657.675963.297110@m73g2000cwd.googlegroups.com>
  • User-agent: Mozilla Thunderbird 1.0.6 (Windows/20050716)
  • Xref: news.mcc.ac.uk comp.os.linux.advocacy:1154694
Lenny wrote:

Idiot. Linux is only 3.5% of revenue for Novell. Netware is more than
65% of revenue. If they decide to stop support Netware then company
will be bankrupt in little over one year.

Well, yes, if they continue to carry all the operations costs of supporting Netware! And the Netware revenue probably carries a low or negative profit margin.


That is, if they were to shed all their Netware business, they would lose that revenue -- however, they would be a company bringing in $60 million a quarter in Linux, and with $1.5 billion in the bank.

Between that and identity management (and here Novell is doing multibillion dollar work with the government) Novell would be a company well in the black, with great new growing revenue streams. Far more than could be said for the average "startup".



--
Texeme Construct

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