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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
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Novell to Acquire SUSE LINUX
Novell/SUSE LINUX to Support IBM eServer Line

Novell announced this week that it will acquire SUSE LINUX in a $210 million cash deal subject to regulatory approval and the winding up of shareholder agreements. "This is fantastic news for the Linux Community," observes LWM editor-in-chief Kevin Bedell. "With the stability and name power of Novell and IBM behind SUSE LINUX, I believe we are on the verge of dramatic growth for Linux in the enterprise. Coupled with Novell's earlier acquisition of Ximian, I believe the acquisition of SUSE positions Novell extremely well for next 5-10 years."

"What we are seeing today is a statement," Bedell continues. "It's a statement aimed at the corporate world telling them that Linux is now a stable, supported application with a long future in front of it. This is no less a statement than when IBM purchased Lotus Notes - after which Lotus Notes installations increased from about 3 million to over 105 million! It would not surprise me to see similar increases in SUSE installations given today's news."

Novell expects the transaction to close by the end of its first fiscal quarter (January 2004). With this acquisition, Novell will become the only $1 billion software company with a Linux distribution and the worldwide technical staff to support it. Novell/SUSE LINUX will also be the world's largest supplier of desktop-to-server Linux solutions and technical support.

"CA feels this move is excellent for the industry and supports the two distribution environment," commented Sam Greenblatt, SVP and chief architect of Computer Associates' Linux Technology Group. "The excellent global support that Novell brings to the open source community will help continue market adoption of Linux from the desktop to the server. CA fully supports Novell/SUSE in their integration efforts and looks forward to working with them to continue CA solution support for SUSE LINUX."

This acquisition follows Novell's August purchase of Ximian. Novell states that both the Ximian and SUSE LINUX acquisitions affirm Novell’s commitment to promoting the open source model and developer community.

Novell today also announced that IBM intends to make a $50 million investment in Novell convertible preferred stock. In addition, Novell and IBM are negotiating extensions to the current commercial agreements between IBM and SUSE LINUX for the continued support of SUSE LINUX on IBM's eServer products and middleware products to provide for product and marketing support arrangements related to SUSE LINUX. Both of these agreements will be effective when the acquisition of SUSE LINUX by Novell is completed.

"Responding to customer demands for open, standards-based computing, Novell has been dedicated to a cross-platform vision for four years now, and Linux is an increasingly important part of that strategy," said Jack Messman, chairman and CEO of Novell. "The acquisition of SUSE LINUX will complete Novell's ability to offer enterprise-class Linux solutions to our customers from the desktop to the server." Messman explained, "We chose SUSE LINUX because they are a clear market leader in Linux technology for the enterprise. With this acquisition, Novell will be the only billion-dollar software company with a Linux distribution and a worldwide ecosystem around it. A worldwide technical staff of more than 600 has been trained to support Linux. The acquisition of SUSE LINUX completes our technology stack from the desktop to the server."

"Novell understands the power of open, standards-based computing, and has been moving in that direction for some time," said Richard Seibt, CEO of SUSE LINUX. "Novell's global reach, marketing expertise and reputation for security, reliability and global enterprise-level support are exactly what we’ve been seeking to take SUSE LINUX to the next level. We've also been impressed by the incredible loyalty and competence of Novell customers and business partners, and we're looking forward to joining forces to help customers gain the benefits of Linux and to help Novell continue to expand its role in the open source community."

Novell began building solutions for Linux in early 2000, when it made its eDirectory technology available on Linux. In April of this year, Novell announced it would make all the services that run on its NetWare operating system run on both the NetWare and Linux kernels in the future. In August, Novell acquired Ximian with its Linux desktop management solutions and its leadership to promote Linux desktops and to enable Microsoft .NET applications to run on Linux.

In September, Novell announced the open beta of Novell Nterprise Linux Services (NLS), an offering that runs on SUSE LINUX and Red Hat and provides a variety of networking services for Linux environments. IBM, HP and Dell have all licensed the NLS technology for resale to their customers. With the acquisition of SUSE LINUX, Novell will distribute the underlying Linux platform itself, in addition to the services for Linux that Novell already offers.

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SYS-CON's Linux News Desk gathers stories, analysis, and information from around the Linux world and synthesizes them into an easy to digest format for IT/IS managers and other business decision-makers.

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Reader Feedback: Page 1 of 3

SCO is just upset that IBM backed out of an agreement. IBM and SCO were co-developing a product. IBM backed out and started pushing Linux. What does SCO and Linux have in common. They are both Unix flavors running on an intel platfrom. I think IBM figured they could do it for less with out SCO. Novell's management changed about 3 years ago. I think it is hard to say what will happen since Novell has a new drive in the driver seat.
I think this move benefits both parties. If a person is willing to remove a product becuase of an event in the market place they are extreame. I agree that Novell has superb products and so does SuSe. I think people are extream e and rash if they are going to migrate to from SuSe to another version just becuse SuSe was purchased by Novell.

Repeat again :

If some says that :
"when large corporations with many interests and products take over small, focused outfits". I think may not be totally correct.

may not be totally correct.
may not be totally correct.

Depend what you find the company was.

HP, IBM & Oracle,... they serve small business so well.
Of course, they will earn money from us.

Cheers

SUSE is a corporation same as IBM, Oracle, HP, Intel, AMD.
No difference, of course include M$.
All are corporation? Then so what? :)
"focused outfits"... I don't think so.

Only depend on what they produce and what they focus? Not because of they are corporation or not?

If some says that :
"when large corporations with many interests and products take over small, focused outfits". I think may be totally correct. Depend what you find the company was.

Hope you find one that are not "focused outfits", and not because of they are corporation or not.

Good luck

Cheers

Mike Calder commented on 6 November 2003:
"Well, "Me", I'm no believer in any religion, but I know what happens when large corporations with many interests and products take over small, focused outfits."

SUSE is also a corporation, no?

- Although Novell has lossed the market share to M$ in past few years, Novell still is a good company.
It has many many sales experience with chanel partners and corporate users. It still can have power to fly in the sky with SUSE - the new stronger. (same as/near to RedHat's).

Now, M$ own the large marketing share that good enough for both of Redhat and [SUSE/Novell] to growth and success.

Of course, must have long term plan and do a long term winner (not short term).

Cheers

Second, SCO & Novell only distribute Linux version in the world such as RedHat doing now. There are too many and many distributors in the World. Everything still control in Linux Society. If M$ buy it, just buy the empty and everying will gone away from M$.
M$ got only pressure from the Court department at the end. Well good sound.

First, M$ still face to monopoly claimed by everybody now. So M$ got the big pressure and have the risk to break down by Court decision. If M$ buy out either SCO or Novell, M$ will get the big big problem. Then it may break down by Court decision and become too many small & small M$. hahaha And loss monoploy that everyone want to see it. ha ha. very nice.

It is interesting for M$ get Novell & SCO.
But I think it is impossible.

I

it will be interesting - M$ is trying to move the goal posts onto another monopolised propriety playijng field with LongHorn - thing is, will Novell and the Linux community be able to respond........does anyone know of any Linux projects based around the "wheres my stuff" (Gates words) vision

to Me
Novell have not made any money for a while now and whether you like it or not (i am a fan by the way) their customer base was shrinking, if they didnt reverse that shrinkage at some point they would have either gone under or been bought.

Why do you think they have gone LiNux with a big red N - they are a business after all......

In a few years Novell wil be claiming ownership of the GNU/Linux products.
That's how SCO got the trojan horse in, by buying and existing GNU/Linux distribution (Caldera).
a two prong attack on the GNU/Linux.
I wonder if MS owns any part of SCO and (or) Novell.

Just wait and watch it Mike. Novell will rocket again with more superior & useful products. If you are disappointed with SuSE, let me tell you if you will regret yourself if you change the flavour of Linux now as SuSE will become even better product to use than now. I am just waiting to see a new child from Novell that can perfectly produce everything what M$(thanks SEA DRAGON) platform can/doing now and even more. It should even consider what Sun has to offer with Java DeskTop and outperform that one as well.

Well, "Me", I'm no believer in any religion, but I know what happens when large corporations with many interests and products take over small, focused outfits. The focus gets dispersed, and the culture of the large corporation takes over. And yes, I've used Novell products; I've been in IT over 30 years, and worked for large corporations and small. Suse had a professional working culture. It won't survive.

This is a great move for a company with already superb products. Already near bullet-proof on the server-side, now Novell will be able to offer reliable products "end to end". Businesses will be able to benefit from reliable product from a known entity (as opposed to the notion\fear that "Linux" is an ethereal group of unknown developers without accountability). This will lead to further inroads of Linux onto the corporate desktop. Isn't that where we want to be?

To Mike Calder - Are you so into the Open Source "religion" that SuSE will automatically become a bad product if taken over by a corporate entity? Have you ever used a Novell product? I have for almost 12 years - alongside AIX, various Linux flavours, and various Windows server incarnations.

The products are excellent, stable, and robust. The support is superb. And you dont get a single reply of "RTFM" ;-). Granted, the first-line "grunt" help desk support personnel are what you'd expect for low-paid, entry level employees, but once escallated to "real" support engineers, the support is second to none.

Try it after the merger - you'll probably still like it.

To Rod Lee: Although they have downsized a couple of times in the past two years, I don't think that any company with billions in assets, over 30 million devoted users, and a billion dollars in cash in the bank is anywhere near going under.

This move is an attempt to regain the cross-platform compatibility and support that for some reason, Novell cut from its products over the years (remember Netware and Groupwise clients for Unix Workstations?).

Lead on Novell....

Of course, Market Leader in Linux Society will be suffered because SUSE can have more power now to increase the sales volume in market.

I think it is not bad if they only want to prompt more Linux (Desktop/Server) to market.

When we think about that, M$ OWN BIG MARKET SHARE NOW.
If SUSE & RedHat can sales more Linux to M$'s user.
It is good idea for both party. Also, Other Linux Version will be growth up fastly than SUSE & RedHat. Then that Linux version company will be market leader. Who knows that answer?
The best thing is how to create sales to M$ users.
Include Desktop & Server.

Such as KDE & GNOME, both of them can provide good desktop in market. They are co-exist and fast improve their desptop. It is good for Linux society.

Such as sendmail & qmail.... to many example.
The potential market from $M is good enough for Linux to grouth.

Such as RedHat and SUSE, they can do a good job to win back the market share from M$. On that time, for my view, the market leader should be the one that have power to get back the market share from M$.


Feedback Pages:


Your Feedback
Me2 wrote: SCO is just upset that IBM backed out of an agreement. IBM and SCO were co-developing a product. IBM backed out and started pushing Linux. What does SCO and Linux have in common. They are both Unix flavors running on an intel platfrom. I think IBM figured they could do it for less with out SCO. Novell's management changed about 3 years ago. I think it is hard to say what will happen since Novell has a new drive in the driver seat. I think this move benefits both parties. If a person is willing to remove a product becuase of an event in the market place they are extreame. I agree that Novell has superb products and so does SuSe. I think people are extream e and rash if they are going to migrate to from SuSe to another version just becuse SuSe was purchased by Novell.
Sea Dragon wrote: Repeat again : If some says that : "when large corporations with many interests and products take over small, focused outfits". I think may not be totally correct. may not be totally correct. may not be totally correct. Depend what you find the company was. HP, IBM & Oracle,... they serve small business so well. Of course, they will earn money from us. Cheers
Sea Dragon wrote: SUSE is a corporation same as IBM, Oracle, HP, Intel, AMD. No difference, of course include M$. All are corporation? Then so what? :) "focused outfits"... I don't think so. Only depend on what they produce and what they focus? Not because of they are corporation or not? If some says that : "when large corporations with many interests and products take over small, focused outfits". I think may be totally correct. Depend what you find the company was. Hope you find one that are not "focused outfits", and not because of they are corporation or not. Good luck Cheers
Joe Burke wrote: Mike Calder commented on 6 November 2003: "Well, "Me", I'm no believer in any religion, but I know what happens when large corporations with many interests and products take over small, focused outfits." SUSE is also a corporation, no?
Sea Dragon wrote: - Although Novell has lossed the market share to M$ in past few years, Novell still is a good company. It has many many sales experience with chanel partners and corporate users. It still can have power to fly in the sky with SUSE - the new stronger. (same as/near to RedHat's). Now, M$ own the large marketing share that good enough for both of Redhat and [SUSE/Novell] to growth and success. Of course, must have long term plan and do a long term winner (not short term). Cheers
Sea Dragon wrote: Second, SCO & Novell only distribute Linux version in the world such as RedHat doing now. There are too many and many distributors in the World. Everything still control in Linux Society. If M$ buy it, just buy the empty and everying will gone away from M$. M$ got only pressure from the Court department at the end. Well good sound.
Sea Dragon wrote: First, M$ still face to monopoly claimed by everybody now. So M$ got the big pressure and have the risk to break down by Court decision. If M$ buy out either SCO or Novell, M$ will get the big big problem. Then it may break down by Court decision and become too many small & small M$. hahaha And loss monoploy that everyone want to see it. ha ha. very nice.
Sea Dragon wrote: It is interesting for M$ get Novell & SCO. But I think it is impossible.
Sea Dragon wrote: I
Rod Lee wrote: it will be interesting - M$ is trying to move the goal posts onto another monopolised propriety playijng field with LongHorn - thing is, will Novell and the Linux community be able to respond........does anyone know of any Linux projects based around the "wheres my stuff" (Gates words) vision to Me Novell have not made any money for a while now and whether you like it or not (i am a fan by the way) their customer base was shrinking, if they didnt reverse that shrinkage at some point they would have either gone under or been bought. Why do you think they have gone LiNux with a big red N - they are a business after all......
Simple Joe wrote: In a few years Novell wil be claiming ownership of the GNU/Linux products. That's how SCO got the trojan horse in, by buying and existing GNU/Linux distribution (Caldera). a two prong attack on the GNU/Linux. I wonder if MS owns any part of SCO and (or) Novell.
S. Vasanth Kumar wrote: Just wait and watch it Mike. Novell will rocket again with more superior & useful products. If you are disappointed with SuSE, let me tell you if you will regret yourself if you change the flavour of Linux now as SuSE will become even better product to use than now. I am just waiting to see a new child from Novell that can perfectly produce everything what M$(thanks SEA DRAGON) platform can/doing now and even more. It should even consider what Sun has to offer with Java DeskTop and outperform that one as well.
Mike Calder wrote: Well, "Me", I'm no believer in any religion, but I know what happens when large corporations with many interests and products take over small, focused outfits. The focus gets dispersed, and the culture of the large corporation takes over. And yes, I've used Novell products; I've been in IT over 30 years, and worked for large corporations and small. Suse had a professional working culture. It won't survive.
Me wrote: This is a great move for a company with already superb products. Already near bullet-proof on the server-side, now Novell will be able to offer reliable products "end to end". Businesses will be able to benefit from reliable product from a known entity (as opposed to the notion\fear that "Linux" is an ethereal group of unknown developers without accountability). This will lead to further inroads of Linux onto the corporate desktop. Isn't that where we want to be? To Mike Calder - Are you so into the Open Source "religion" that SuSE will automatically become a bad product if taken over by a corporate entity? Have you ever used a Novell product? I have for almost 12 years - alongside AIX, various Linux flavours, and various Windows server incarnations. The products are excellent, stable, and robust. The support is superb. And you dont get a single reply of "RTFM" ;-). Grante...
Sea Dragon wrote: Of course, Market Leader in Linux Society will be suffered because SUSE can have more power now to increase the sales volume in market. I think it is not bad if they only want to prompt more Linux (Desktop/Server) to market. When we think about that, M$ OWN BIG MARKET SHARE NOW. If SUSE & RedHat can sales more Linux to M$'s user. It is good idea for both party. Also, Other Linux Version will be growth up fastly than SUSE & RedHat. Then that Linux version company will be market leader. Who knows that answer? The best thing is how to create sales to M$ users. Include Desktop & Server. Such as KDE & GNOME, both of them can provide good desktop in market. They are co-exist and fast improve their desptop. It is good for Linux society. Such as sendmail & qmail.... to many example. The potential market from $M is good enough for Linux to grouth. Such as RedHat and SU...
Jason wrote: How will this effect Red Hat?
Sea Dragon wrote: Well, I think cannot say that "which one will be sunk". Linux still need the more & more power to break down M$'s monolopy. M$ do the best in marketing. Such as it's browser. Through the integrated with desktop to break down Netscape. Who know what will do in the next step. Well, Novell & Linux can make together to increase the addition value to break down these monopoly. It is good deal. Both side can get the best. Please think about that why IBM will pay money to support Novell to get married with Linux society. Why? What IBM want? Make Linux more power & stronger & .. break down monopoly... of course.. too many reasons. But I think this is good for Linux Society, Novell, IBM,....except M$ & ... If want to growth up more, must do the best in the marketing, closing to users and know they need, do they want. All these steps, M$ are doing now and forever. Don't do som...
Sea Dragon wrote: Well, I think cannot say that "which one will be shunk". Linux still need the more & more power to break down M$'s monolopy. M$ do the best in marketing. Such as it's browser. Through the integrate with desktop to break down Netscape. Who know what will do in the next step. Well, Novell & Linux can make together to increase the addition value to break down these monopoly. It is good deal. Both side can get the best. Please think about that why IBM will pay money to support Novell to get married with Linux society. Why? What IBM want? Make Linux more power & stronger & .. break down monopoly... of course.. too many reason. But I think it is good for Linux Society, Novell, IBM,....except M$ & ... If want to growth up more, must do the best in the marketing, closing to users and know they need. All these steps, M$ are doing now and forever. Don't do something that hu...
Rod Lee wrote: Linux has been described as a "lifeline" to novell and that is what it is - without increased market share and profits brought about by a Linux strategy Novell would have eventually sunk........
Mike calder wrote: A disaster. I've been a happy user of Suse for four years, and made all my company machines Suse Linux. Now Suse, who have been a capable and professional outfit, will disappear into the maw of corporate USA. So, over the next year I'm going to have to convert my business to another Linux distro, and going to have to evaluate the remaining suppliers to see who is independent, technically capable, and professional. I could have done without it.
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