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Re: Novell's Winning Strategy

Roy Schestowitz wrote:
> Has Novell Figured Out a Winning Strategy?
>
> ,----[ Quote ]
> | "The bottom line is we're making progress," said Lowry. "The new products
> | are growing faster than the legacy business is shrinking. People seem
> | to think our revenue is in free fall, and it's just not true."
> |
> | "The bottom line is we're making progress," said Lowry. "The new products
> | (notably SuSE Linux) are growing faster than the legacy business (notably
> | NetWare) is shrinking. People seem to think our revenue is in free fall,
> | and it's just not true."
> `----
>
>                         http://www.linuxinsider.com/rsstory/50592.html


His statement isn't exactly accurate either. Novell is being a little
loose with their figures here. If his statement has any resemblence of
truth then he must be talking about relative percentages and not
absolute dollar amounts. He must mean something like 'SuSE grew at 20%
and Netware only fell 12%.' What he neglects to say is that Netware
still makes up the majority of their revenue so when measured in
absolute dollars both sales of software licences are down (5%) and
revenue from services are also down (6%). Total revenue for Novell is
down 5%.

Since both software revenue and services revenue are both down I don't
see how he can claim that SuSE is making up for the decline in their
legacy products.


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