Comments on: SUSE Linux is growth engine for Novell http://itknowledgeexchange.techtarget.com/enterprise-linux/suse-linux-is-growth-engine-for-novell/ A SearchEnterpriseLinux.com blog Tue, 24 Nov 2009 00:19:01 +0000 http://wordpress.org/?v=2.6.2 By: Iwoodstock http://itknowledgeexchange.techtarget.com/enterprise-linux/suse-linux-is-growth-engine-for-novell/#comment-1650 Iwoodstock Sun, 07 Dec 2008 16:53:35 +0000 http://itknowledgeexchange.techtarget.com/enterprise-linux/suse-linux-is-growth-engine-for-novell/#comment-1650 A few key points missing here. Firstly, they are again at a loss for the year. Secondly their linux revenues for the year are down year over year. (compare Linux revenues to what they classify as open platforms) Thirdly over 40% of their linux revenue came from Microsoft. I think it's important to analyse just what that means. Microsoft bought the subscriptions at full price. But unlike "real" resellers they sell them at a loss -they sell the SLES subscriptions at anything from free to 50% off the price they purchased. Interesting ... So for each booking Novell records the full price (since that's what they received from microsoft) but the customer gets Linux VERY cheap. A full conclusions can be drawn here. Novell has to GIVE it's product away to make revenue. Microsoft is deliberately making a loss. Why would they do that? Microsoft has been know to give away products for free previously - it's a tactic to destroy their competition. the best conclusion one can draw is that Microsoft is attacking Linux and it's leading vendor, Redhat, by using the ever desperate novell. A few key points missing here.
Firstly, they are again at a loss for the year.
Secondly their linux revenues for the year are down year over year. (compare Linux revenues to what they classify as open platforms)
Thirdly over 40% of their linux revenue came from Microsoft. I think it’s important to analyse just what that means.

Microsoft bought the subscriptions at full price.
But unlike “real” resellers they sell them at a loss -they sell the SLES subscriptions at anything from free to 50% off the price they purchased. Interesting …
So for each booking Novell records the full price (since that’s what they received from microsoft) but the customer gets Linux VERY cheap.
A full conclusions can be drawn here.
Novell has to GIVE it’s product away to make revenue.
Microsoft is deliberately making a loss. Why would they do that?
Microsoft has been know to give away products for free previously - it’s a tactic to destroy their competition.
the best conclusion one can draw is that Microsoft is attacking Linux and it’s leading vendor, Redhat, by using the ever desperate novell.

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