Novell needs to convince users and developers that it can make the
most of Linux.
The £125m acquisition of SuSE by Novell is good news both for the
two companies and the wider Linux movement as a whole. However,
having purchased the chance to regain its former glory, Novell
still has work to do in order to reap the potential benefits of its
acquisition.
The acquisition is a natural extension of the strategy that Novell
announced at its annual Brainshare event at the beginning of the
year. Novell made a strategic commitment to Linux and has been
steadily delivering on that commitment over the past few months -
most notably with the acquisition of Linux software developer
Ximian. SuSE completes Novell's offering, and means that Novell can
rightly claim to have the most complete stack of software for the
Linux platform.
Novell can also now offer a clear future to its existing base of
Netware users, who despite showing tremendous loyalty have started
to drift away. Now Netware users have a choice - they can migrate
to Windows, or to the next generation of Novell's server operating
system.
On the face of it, Novell's Linux portfolio has received a boost
from the addition of the number two Linux distribution to its
portfolio, placing Novell in the top tier of the blue chip IT
companies that are promoting Linux, and SuSE has been brought onto
a par with Red Hat in terms of the support, research and consulting
resources at its disposal.
SuSE is also set to benefit from access to a massive network of
independent software suppliers and value added resellers that would
take Red Hat years to replicate.
Naturally, not everyone benefits as a result of this deal, and
Novell needs to execute a careful strategy of co-operation with
software houses, its existing channel partners and the Linux
community if it is to capitalise on its new status.
Also, businesses wishing to adopt Linux will no longer find that
Red Hat is the only viable option; Novell/SuSE will represent a
very capable alternative.
In order to capitalise on this move, Novell still has some work to
do, however. The company needs to:
Get software houses and the channel on board
Novell has to engage quickly with independent software suppliers to
reinforce their support for SuSE. Novell should be pitching to be
the primary Linux platform for companies such as Oracle and
SAP.
Encourage existing Netware users to migrate
Although Novell will have to commit to supporting the core Netware
operating system for some time to come, the company should provide
incentives to its installed base to migrate to the Linux platform -
Novell can give Linux a huge boost by ramping up the number of
enterprises that run Linux for core network services.
Promote education and training around SuSE Linux
If Novell can replicate the success of its CNE (certified Novell
engineer) programme with SuSE it will have a powerful army of CLEs
(certified Linux engineers).
Play nicely with Red Hat
Finally, Novell should commit to supporting Red Hat as an
alternative for the foreseeable future. If SuSE and Red Hat are to
be the de facto leaders in the world of commercial Linux they must
strike a sound balance between competition and co-operation.
SuSE is the only close competitor to Red Hat, and over the past few
months the gap between Red Hat and SuSE appeared to be widening.
Novell's support changes SuSE's position fundamentally. Novell has
1,200 support staff and about half of these already have Linux
expertise.
Novell has an army of consultants thanks to its acquisition of
Cambridge Technology Partners, all of whom can support SuSE's push
into the enterprise. More importantly, Novell has a huge channel
programme which includes tens of thousands of independent software
suppliers and value added resellers, all of which, if properly
trained and incentivised, can become a powerful consulting, support
and sales channel for SuSE Linux.
The obvious loser in the short term is Red Hat. Although Red Hat's
revenues currently eclipse SuSE's by a factor of nearly three, SuSE
has been given a huge boost thanks to Novell. Over the longer term,
Red Hat's customers (and perhaps even Red Hat itself) will benefit
from the presence of a strong, viable and competent competitor in
the market.
Novell is now in a position to start chipping away at those parts
of the Microsoft installed base where Linux can show significant
savings in time and money.
Another noteworthy loser is SCO, which is embroiled in a legal
battle with IBM and the Linux community over claims that some
versions of Linux contain SCO's proprietary Unix code. Novell and
IBM have disputed SCO's claims from the outset, and this
acquisition demonstrates that Novell is confident that SCO will
lose its case. Confidence to the tune of £125m is difficult to
ignore.
Gary Barnett is research director at analyst
firm Ovum