Novell: Why Linux Is The Next Netscape
August 30, 2007 by Douglas A. McIntyreNovell (NOVL) reported next to no reveue growth in its last quarter. The number was $243 million, up less than 3% from a year ago. According to TheStreet.com, cash flow dropped from $36 million to $26 million. That is about what Microsoft (MSFT) spends to operate its corporate jet each month.
The other "big" company in the open-source enterprise Linux software business is Redhat (RHT). In the last reported quarter, revenue there was $119 million.
A recent study from Gartner actually shows Microsoft (MSFT) taking back market share in the server OS business. That means that one of the largest markets for Linux may not be a growth busienss any more.
Novell and Redhat live in the shadow of the ogre in Redmond. Microsoft recently said that Linux violates a number of its patents.Could be.
But, Linux is not big, and it is not growing much as an alternative for enterprise application software.
Linux has become the next Netscape.
Douglas A. McIntyre
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