Novell Still Profits with Linux

Aug 31, 2009

Tightening of the belt has seemingly paid off for Novell. The enterprise earned 38 million USD in the last quarter with Linux products.

Novell’s turnover for the third quarter this year is lower than that of the third quarter last year, but the figures are still in the black. Novell closed out 2009’s third quarter with a profit of 17 million USD.

Overall revenues sank from the third quarter’s figures of 245 million USD in 2008 to 216 million in 2009. The lion’s share of earnings came in the form of subscriptions and maintenance, with an estimated 160 million USD coming from these sources of income. Software licenses and services (such as technical support and training) only brought in 27 million (2008) and 25 million (2009). In contrast, Novell earned 30 million USD with Linux products; 22% more than what was earned with Linux in the third quarter in 2008.

All other profit sources brought less bread to the table than what was accomplished the previous year. Identity, access, and compliance management coughed up 28 million and thus rolled back 16% as compared to last year. System and resource management earned 40 million and indeed more than most other segments, but this figure is still a relative decrease of 15%. The real cash cow of the bunch proved to be collaboration products of the workgroup segments with 81 mill, but this fat little number is still 12% lower than what was taken in before. Novell’s own breakdown of the facts and figures can be viewed in their report.

Just a year ago, proprieters of Suse Linux reported a loss of 15 million dollars. For this reason, Novell cut spending. Jobs fell prey to this spending cut, in addition to the annual fair Brainshare for 2009. The enterprise also axed involvement with the Cebit exhibition for the year.

The Novell facilitated free distribution openSUSE has also benefited from Novell’s growth in the realm of Linux products. At July’s Linux day, Novell staffmember Will Stephenson emphasized their openess to and close cooperation with the Community in a conversation with Linux magazine online. In August, Novell developed its .

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