| Special Report: Novell acquires SUSE |
Nov. 04, 2003
Updated Nov 4, 2003, 10:30 PM PST -- Novell announced today that it has reached an agreement to acquire SuSE. Additionally, Novell recently acquired Ximian, a specialist in desktop and server Linux solutions including GNOME, Red Carpet, Evolution, Ximian desktop, and the Mono .NET compatibility project.
Highlights of the deal, according to Novell, include . . . - Novell expands its open source commitment and will become the first to offer comprehensive Linux solutions for the enterprise from the desktop to the server
- Novell will be the only $1 billion software company with a Linux distribution and the worldwide technical staff to support it
- Novell/SUSE Linux to become the world's largest supplier of desktop-to-server Linux solutions and technical support
- Customers to gain worldwide technical support for enterprise Linux solutions from a company with more than 20 years of operating system experience
- IBM and Novell to negotiate extensions to commercial agreement with Novell/SUSE Linux to support the IBM eServer line
Here is the full text of Novell's press release . . .
Provo Utah -- Nov. 4, 2003 -- Novell today announced it has entered into an agreement to acquire SUSE LINUX, one of the world's leading enterprise Linux companies, expanding Novell's ability to provide enterprise-class services and support on the Linux platform. With the open source expertise of SUSE Linux and Novell's world-class networking and identity solutions and support, training and consulting services, Novell will be able to deliver Linux and all its components - from the server to the desktop - and give organizations a secure, reliable and mature Linux foundation. Novell will pay $210 million in cash to complete the acquisition. The transaction is subject to regulatory approval and the winding up of shareholder agreements. Novell expects the transaction to close by the end of its first fiscal quarter (January 2004).
This latest move follows Novell's August purchase of Ximian, a leader in Linux server and desktop solutions, and further demonstrates Novell's ongoing commitment to provide customers a full range of Linux solutions. Both the Ximian and SUSE Linux acquisitions affirm Novell's commitment to promoting the open source model and developer community.
Novell today also announced that IBM intends to make a $50 million investment in Novell convertible preferred stock. In addition, Novell and IBM are negotiating extensions to the current commercial agreements between IBM and SUSE Linux for the continued support of SUSE Linux on IBM's eServer products and middleware products to provide for product and marketing support arrangements related to SUSE Linux Both of these agreements will be effective when the acquisition of SUSE Linux by Novell is completed.
"Responding to customer demands for open, standards-based computing, Novell has been dedicated to a cross-platform vision for four years now, and Linux is an increasingly important part of that strategy," said Jack Messman, chairman and CEO of Novell. "The acquisition of SUSE Linux will complete Novell's ability to offer enterprise-class Linux solutions to our customers from the desktop to the server. No other enterprise Linux vendor has the operating system experience and the worldwide technical support capabilities that Novell will be able to deliver. Novell is bringing our significant resources to bear to help customers adopt Linux with more confidence, giving them the freedom of choice Linux provides without the anxiety over whether an open source solution can truly be relied on for mission-critical functions."
"Novell understands the power of open, standards-based computing, and has been moving in that direction for some time," said Richard Seibt, CEO of SUSE Linux. "Novell's global reach, marketing expertise and reputation for security, reliability and global enterprise-level support are exactly what we've been seeking to take SUSE Linux to the next level. We've also been impressed by the incredible loyalty and competence of Novell customers and business partners, and we're looking forward to joining forces to help customers gain the benefits of Linux and to help Novell continue to expand its role in the open source community."
SUSE Linux Offerings Complement Novell Linux Services SUSE Linux offers a range of Linux server and desktop solutions designed to meet the diversified needs of different organizations. SUSE Linux Enterprise Server 8 for midsize to large companies provides a range of core networking services with the high-availability and scalability features needed for mission-critical environments.
SUSE Linux is the leading enterprise Linux company in Europe. In addition, through its relationships with Conectiva and Turbolinux, SUSE Linux has been a leader in Latin America and Asia, as well. SUSE Linux is also one of the top providers of Linux to enterprises in the United States and North America. Novell's extensive global sales and channel programs, proven and reliable technical support capabilities, as well as ongoing Novell and SUSE Linux relationships with key partners like IBM, Oracle, SGI, Fujitsu-Siemens, Dell, Intel, AMD, SAP, HP and others, provide a powerful business network to promote more rapid Linux adoption around the globe.
Novell's Linux Strategy
The acquisition of SUSE Linux will be an important step in Novell's efforts to accelerate enterprise adoption of Linux. Novell began building solutions for Linux in early 2000, when it made its flagship eDirectory technology available on Linux. In April of this year, Novell announced it would make all the services that run on its NetWare® operating system run on both the NetWare and Linux kernels in the future with the full range of Novell's worldwide technical support. In August, Novell acquired Ximian with its leading Linux desktop management solutions and its visionary leadership to promote Linux desktops and to enable Microsoft .NET applications to run on Linux.
In September, Novell announced the open beta of Novell® Nterprise Linux Services (NLS), an offering that runs on SUSE Linux and Red Hat* and provides a variety of networking services for Linux environments. IBM, HP and Dell have all licensed the NLS technology for resale to their customers. With SUSE Linux, Novell expands its reach to developers and ISVs looking for a complete Linux solution. Today's announcement of Novell's plans to acquire SUSE Linux strengthens Novell's already proven set of Linux offerings by allowing Novell to distribute the underlying Linux platform itself, in addition to the many value-added services for Linux that Novell already offers.
"We chose SUSE Linux because they are a clear market leader in Linux technology for the enterprise," Messman said. "With this acquisition, Novell will be the only billion-dollar software company with a Linux distribution and a worldwide ecosystem around it. A worldwide technical staff of more than 600 has been trained to support Linux. The acquisition of SUSE Linux completes our technology stack from the desktop to the server."
Beyond the technology, the acquisition will also expand Novell's strategic commitment to the open source community. The combination of SUSE Linux and Novell will deliver not only complete enterprise Linux software solutions, but also worldwide channels and industry-leading partnerships. The combined company will help promote a thriving, global open source ecosystem that creates innovation and choice for developers, users and organizations alike. Novell is firmly committed to open standards and maintaining the existing open source kernel development efforts. From advocacy and development resources to events and support of open source efforts like kernel projects, XFree86, ReiserFS, KDE, GNOME and Mono, Novell stands side-by-side with the open source community.
What Linux leading companys are saying? . . .
Computer Associates
"CA feels this move is excellent for the industry and supports the two distribution environment. The excellent global support that Novell brings to the open source community will help continue market adoption of Linux from the desktop to the server. CA fully supports Novell/SuSE in their integration efforts and looks forward to working with them to continue CA solution support for SuSE Linux. "
-- Sam Greenblatt, SVP and Chief Architect of CA’s Linux Technology Group
Added perspective
For further perspective, we provide the following round-up of some of the more interesting news items and articles from around the web that relate to this significant announcement . . .
(Click here for further information)
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Approaching the Linux Desktop
The purpose of this paper is to help organizations evaluate the Linux desktop against their own enterprise needs and discover what benefits the Linux desktop might bring to their organizations.
Migrating To Linux: Application Challenges and Solutions
Several solutions exist to help organizations migrate in an orderly fashion from Windows to Linux desktops. This paper establishes the characteristics of an ideal cross-platform solution and reviews these alternatives in light of this ideal standard. The paper takes a closer look at the pros and cons of various solutions and outlines the business benefits that can be achieved.
Linux Advantages: Publicly Available Information on Linux Software
This paper offers a brief summary of readily-available Linux information to help businesses sort out this widely misunderstood operating system.
Top 5 Strategies for Managing Linux
Despite continuous evolution in the manageability of Linux, a 2006 survey cited manageability concerns as a top reason why organizations are hesitating to adopt Linux. Levanta believes Linux can be as manageable, if not more so, than other operating systems by following key strategies. These strategic recommendations were developed from experiences in numerous customer environments, both large and small.
Why Choose Novell for Linux?
This paper outlines the benefits of switching to the Linux platform and choosing Novell as a high-performance, enterprise solution.
Enterprise Linux Selection Guide
Considering moving your enterprise to the Linux operating system? Since there are so many similar versions, choosing the right one can be tough. This paper offers a clear process to help you make an informed decision and get the features, support, and cost that are right for your business and technical needs.
Overcoming Challenges in Managing Linux
Levanta has created a new administration model with innovative technology that breaks down the barriers to making the most of Linux systems. This paper will provide an in-depth look at the workings of Levanta’s product, the first Linux appliance of its kind.
SUSE Linux Enterprise 10 for Retail Businesses
Discover why major retailers have switched to SUSE Linux Enterprise Desktop in the back office. SUSE Linux Enterprise Desktop 10 is a low-cost desktop that offers a complete set of productivity applications and interoperates seamlessly with the other Windows, Macintosh and UNIX desktops in your store.
Moving to a Linux Desktop
Migrating from Windows to Linux on the desktop can be a substantial undertaking because it has the potential for touching -- and perhaps disrupting -- every user in your organization. Unlike a data center (server and infrastructure) migration that is largely transparent to users, the cultural and administrative transitions and environment readiness required to support a Linux desktop migration are extensive.
Seven Good Reasons to Exchange Exchange
This paper describes seven compelling reasons why you should switch from Exchange to Scalix.
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