Novell
Novell: Open-Source Software Strategy
Introduction and Problem Statement
The CEO of Novell is convinced that Novell's new strategy of utilizing Linux open source software will succeed. Linux has been widely accepted as a superior performing operating system. This strategy makes them a direct competitor with Microsoft, who has previously defeated Novell with Windows NT. With zealous open-source developers and many other companies, including IBM and HP, Novell has a much better outlook than before.
In addition, Microsoft had changed the way it charged for PC software, moving from purchase pricing to subscription pricing. Many customers were dissatisfied that they don’t have control over when they upgrade and have to pay the price Microsoft set, losing their original negotiation leverage. According to a survey, 60% of the respondents decided to explore open source as a direct response to Microsoft’s Enterprise Licensing 6.0 program. In 2003, a European city decided to switch to Linux on its 14,000 PCs.
While Microsoft is struggling with its licensing program, Messman was plotting his Linux migration strategy, where all the network products and features that were in the network service on top of Netware, on top of the network Kernel, would be put on top of the Linux kernel. Novell would sell proprietary software that ran on top of both the Netware and Linux Kernel. They had acquired
SilverStream that offer popular and powerful visual software development that can accelerate web service products to customers. Also, they acquired two highly regarded open source companies, Ximian and SuSE and retained the allegiance of this important online community.
Is this enough to help Novell execute their strategic plan and provide a strong viable alternative to Microsoft?
Background
Novell Data Systems was founded in Provo, Utah as a maker of computer and disk operating systems in 1979. It is reincorporated as Novell, Inc. by a venture capital firm,
Introduction and Problem Statement
The CEO of Novell is convinced that Novell's new strategy of utilizing Linux open source software will succeed. Linux has been widely accepted as a superior performing operating system. This strategy makes them a direct competitor with Microsoft, who has previously defeated Novell with Windows NT. With zealous open-source developers and many other companies, including IBM and HP, Novell has a much better outlook than before.
In addition, Microsoft had changed the way it charged for PC software, moving from purchase pricing to subscription pricing. Many customers were dissatisfied that they don’t have control over when they upgrade and have to pay the price Microsoft set, losing their original negotiation leverage. According to a survey, 60% of the respondents decided to explore open source as a direct response to Microsoft’s Enterprise Licensing 6.0 program. In 2003, a European city decided to switch to Linux on its 14,000 PCs.
While Microsoft is struggling with its licensing program, Messman was plotting his Linux migration strategy, where all the network products and features that were in the network service on top of Netware, on top of the network Kernel, would be put on top of the Linux kernel. Novell would sell proprietary software that ran on top of both the Netware and Linux Kernel. They had acquired
SilverStream that offer popular and powerful visual software development that can accelerate web service products to customers. Also, they acquired two highly regarded open source companies, Ximian and SuSE and retained the allegiance of this important online community.
Is this enough to help Novell execute their strategic plan and provide a strong viable alternative to Microsoft?
Background
Novell Data Systems was founded in Provo, Utah as a maker of computer and disk operating systems in 1979. It is reincorporated as Novell, Inc. by a venture capital firm,