A Stronger Novell

By Steven Vaughan-Nichols  |  Posted 2005-08-25 Print this article Print

On Thursday, Novell also became the sole owner of Onward Novell, a major Novell reseller in India. "Our increasingly customer-focused, go-to-market approach is leading to a stronger Novell as evidenced by our positive operating cash flow and growth in deferred revenue in the quarter. While we were profitable this quarter, we still have improvements to make in our business which will lead to cost reductions," said Messman.
Messman said that these cost reductions will take the form of restructuring—employee layoffs. A final decision on cuts will be made in the fourth quarter.
Novell executives wouldnt go into detail on where these cuts would come. That said, Novells management also made it clear that they value Novells Linux and open-source research and development. Mono, an open-source version of .Net, and the Linux desktop were specifically mentioned as areas that Novell sees as being potentially very rewarding for the company in the future. In addition, Tibbetts said that Novell would be spending more money on marketing. Still, there will be cuts. Since Novell is in the middle of growing and transforming itself into a Linux-based company, making them will not be easy. Its like "trying to change the tire while the car is moving," said Messman. Messman believes that Novell will be successful with both its restructuring and its emergence as a leading Linux power. Check out eWEEK.coms for the latest open-source news, reviews and analysis.

Steven J. Vaughan-Nichols is editor at large for Ziff Davis Enterprise. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.

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