Welcome!

Linux Containers Authors: Liz McMillan, Elizabeth White, Zakia Bouachraoui, Pat Romanski, Stefana Muller

Related Topics: Open Source Cloud, Linux Containers

Open Source Cloud: Article

"Microsoft's Actions Validate Our Linux Strategy Every Day," Says Novell CEO

"Microsoft's Actions Validate Our Linux Strategy Every Day," Says Novell CEO

Related Link:

  • "Linux Is Simply Good Business," Says Novell's Messman in LinuxWorld Keynote

    Novell earned $23 million, or six cents a share, on revenues of $305 million in its fiscal third quarter ended July 31.

    It derived $12 million in revenues from its presumably unprofitable SUSE Linux business: $4 million from enterprise maintenance subscriptions, $5 million from retail and $3 million from technical support, alliance fees and other software products.

    Novell said sales of SUSE Linux Enterprise Server (SLES) subscriptions reached 19,000 units in the quarter, with 12,000 units sold to one unnamed customer, compared to 3,800 units sold in the quarter before. Excluding that one big transaction, the units sold were reportedly split evenly between new deals and renewals.

    Novell said excluding 2,000 units that were sold at a lower price under a special renewal contract, the average selling price of SUSE Linux Enterprise Server was $470. However, most of the revenues associated with the units that it sold will be recognized over the life of the subscription contracts.

    "We believe our Linux transactions would have been higher but several OEMs waited for SLES 9 rather than start with SLES 8," Novell CEO Jack Messman said. "Microsoft's actions validate our Linux strategy every day."

    Novell's overall results include a one-time payment of $19 million from the Canopy Group, SCO's main backer, as a result of a favorable legal judgment.

    SALT LAKE CITY, UTAH - MARCH 22: (FILE PHOTO) Jack Messman, Chairman and CEO of Novell speaks at the opening general session of Novell's BrainShare 2004 Monday March 22, 2004 in Salt Lake City, Utah. (Photo by George Frey/Getty Images

    Excluding the Canopy money, $9 million in restructuring charges and a million bucks in investment impairment charges, Novell's net income on a non-GAAP basis was $14 million, or four cents a share, a penny below Wall Street's consensus.

    Last Q3, Novell lost $12 million, or three cents a share, on revenues of $283 million.

    Messman acknowledged that "Revenue was not as strong as we'd have liked."

    According to him, the company experienced a larger-than-expected decline in its waning NetWare business and weakness in Europe beyond the typical seasonal slowdown.

    New software licenses brought in $58.69 million and maintenance and services accounted for $245.9 million.

    Novell's revenues from its identity management and Web services side grew 2% year-over-year to $26.72 million.

    Revenues from cross-platform services, which include management and collaboration products as well as the services platform and storage offerings, increased to $159.2 million thanks to the Canopy payment and SuSE's revenues.

    NetWare-related revenues were down 12% year-over-year. "Q3 results for NetWare-related revenues represented a bump in the road for our strategy of using Linux initiatives to reduce the rate of decline in our NetWare business," Messman told analysts. Novell expects migration off of NetWare to ease when its Open Enterprise Server is launched later this year.

    Worldwide services, which includes IT consulting, customer support and training, brought in $74.9 million and accounted for 24.6% of total revenues. Novell claimed its consulting backlog is growing.

    Novell also claimed it is still in the investment phase with both Linux and identity management.

    "The market environment for software products and services is still very challenging," Messman said.

    Novell did not provide revenue or earnings guidance for the current quarter citing the uncertainty in the IT marketplace, the bumpiness in the NetWare transition and its focus on Linux and identity management products.

    Related Link:

  • "Linux Is Simply Good Business," Says Novell's Messman in LinuxWorld Keynote

  • More Stories By Maureen O'Gara

    Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

    Comments (2)

    Share your thoughts on this story.

    Add your comment
    You must be signed in to add a comment. Sign-in | Register

    In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


    IoT & Smart Cities Stories
    Moroccanoil®, the global leader in oil-infused beauty, is thrilled to announce the NEW Moroccanoil Color Depositing Masks, a collection of dual-benefit hair masks that deposit pure pigments while providing the treatment benefits of a deep conditioning mask. The collection consists of seven curated shades for commitment-free, beautifully-colored hair that looks and feels healthy.
    The textured-hair category is inarguably the hottest in the haircare space today. This has been driven by the proliferation of founder brands started by curly and coily consumers and savvy consumers who increasingly want products specifically for their texture type. This trend is underscored by the latest insights from NaturallyCurly's 2018 TextureTrends report, released today. According to the 2018 TextureTrends Report, more than 80 percent of women with curly and coily hair say they purcha...
    The textured-hair category is inarguably the hottest in the haircare space today. This has been driven by the proliferation of founder brands started by curly and coily consumers and savvy consumers who increasingly want products specifically for their texture type. This trend is underscored by the latest insights from NaturallyCurly's 2018 TextureTrends report, released today. According to the 2018 TextureTrends Report, more than 80 percent of women with curly and coily hair say they purcha...
    We all love the many benefits of natural plant oils, used as a deap treatment before shampooing, at home or at the beach, but is there an all-in-one solution for everyday intensive nutrition and modern styling?I am passionate about the benefits of natural extracts with tried-and-tested results, which I have used to develop my own brand (lemon for its acid ph, wheat germ for its fortifying action…). I wanted a product which combined caring and styling effects, and which could be used after shampo...
    The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected pat...
    There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
    Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
    At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
    Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
    BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.