04.15.08
Example of Novell’s Not-So-Rising Linux Business (Sales Cannibalisation)
The other day we mentioned — however briefly — that Novell can inflate sales figures using all sorts of artificial means. They deceive the viewer, but the bottom line remains unchanged.
Here is yet another good example of the thing we spoke about just days ago. We used OES as an example of ‘legacy revenue’ suddenly counting as “Linux revenue”. Have a look at this new article.
Netware is to be shown the door for OES2
[…]
OES1 was released in 2005 and ported some technology that ran on Novell’s Netware operating system to SUSE Linux.
In this case you see revenue cannibalisation, which isn’t precisely the same thing as massaging figures — something that even Novell has admitted doing.
Recipe for pseudo renaissance:
- Rename Y, the existing product target, X
- Claim that growth strategy is X
- Move products from Y to X, then claim great growth of new strategy
- …
- Profit!
Now, if only that profit was real. Microsoft seems to enjoy this newly-found cash cow the most, for it has no spendings (development and staffing are Novell’s role). Microsoft has only imaginary intellectual monopolies that require not a single line of code. █
Highlight: Novell was the first to acknowledge that Microsoft FUD tactics had substance. Novell then used anti-Linux FUD to market itself. 
Highlight: Xandros let Microsoft make patent claims and brag about (paid-for) OOXML support. 
Highlight: Linspire's CEO not only fell into Microsoft arms, but he also assisted the company's attack on GNU/Linux. 
Highlight: Microsoft craves pseudo (proprietary) standards and gets its way using proxies and influence which it buys. 
Highlight: The invasion into the open source world is intended to leave Linux companies neglected, due to financial incentives from Microsoft. 
Analysis: Xen, an open source hypervisor, possibly fell victim to Microsoft's aggressive (and stealthy) acquisition-by-proxy strategy.