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Linux Business Businesses SuSE Sun Microsystems

Sun Pondering Buying Novell 400

Krafty Koder writes "ZDNet are reporting that Sun are considering purchasing Novell and thus gain SUSE Linux. 'With our balance sheet, we're considering all our options,' Sun chief operating officer Jonathan Schwartz said in an interview on Sunday regarding the possibility of acquiring Novell. 'What would owning the operating system on which IBM is dependent be worth? History would suggest we look to Microsoft for comparisons,' he said."
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Sun Pondering Buying Novell

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  • by rsidd ( 6328 ) on Monday August 02, 2004 @11:05AM (#9862607)
    if they think this purchase will let them "own" linux
  • Mod up Parent (Score:1, Informative)

    by Anonymous Coward on Monday August 02, 2004 @11:10AM (#9862648)
    I think it's a very interesting question as to what would happen to Mono if Sun bought Novell. Since Java and .Net are direct competitors, it seems highly unlikely that Sun would allow Miguel to continue the Mono project under Sun's employ.
  • by Anonymous Coward on Monday August 02, 2004 @11:11AM (#9862654)
    Sun has 2 billion in cash and Novell is priced at 3 billion. Looks risky burning your cash reserves. I'm not sure Novell provides the "synergy" that could sparc a Sun revival.
  • speaking of big news (Score:2, Informative)

    by Anonymous Coward on Monday August 02, 2004 @11:19AM (#9862707)
    I guess the honeymoon between M$ and Unisys is over...
    http://www.unisys.com/about__unisys/news_a_events/ 08028430.htm [unisys.com]
  • by TWX ( 665546 ) on Monday August 02, 2004 @11:26AM (#9862763)
    "Or IBM could just keep on selling their hardware with SuSE and keep on developing it themselves, regardless of what Sun wants or thinks it wants. Makes no difference when it's all GPL."

    Well, not all of SuSE's tools are GPL. I know that YaST for example wasn't for a long time. I've heard ramblings that YaST will be open sourced, but if there are any other tools then IBM would have to develop their own replacements for them. Not that I believe that's out of their abilities in the slightest, but the advantage that IBM has of getting Linux from another party who is active in the whole scene is that IBM doesn't have to pay quite as much attention as they would have if they did it all in house, and they don't have to maintain a system for non-paying distribution users to report back bugs and development issues, leaving that currently to SuSE.

    IBM would probably be better off looking to another distribution if SuSE were damaged in some way. It'd be easier and a lot better for long term development.
  • The Enterprise (Score:1, Informative)

    by Anonymous Coward on Monday August 02, 2004 @11:27AM (#9862773)
    In the Enterprise sector, there are only really two players: RedHat and SUSE.

    That's where the money is, baby.
  • Yep, remember these are the same guys that helped fund SCO's FUD... and "saw problems" with "IP" aspects of Linux...

    No, they didn't "see" any problems with Linux IP. They said they had complete, perpetual, and air-tight licenses for Unix that would allow them to easily indemnify their customers against any attack from "Unix IP holders". Sun long ago made sure to cover their bases on Unix IP, so SCO would literally not be able to get past a preliminary hearing if they were to sue Sun.
  • by taybin ( 622573 ) <taybin@taybi n . c om> on Monday August 02, 2004 @11:37AM (#9862892) Homepage
    They would be buying Novell's UNIX copyrights.

    They would also get Ximian, which controls Mono and Evolution.

    Keep in mind that Sun are already big gnome contributors.

    And of course, Suse.
  • by pknoll ( 215959 ) on Monday August 02, 2004 @11:40AM (#9862920)
    It should read as "ZDNet is" and "Sun is".

    Unless you're in the U.K., where the convention is as written. They tend to refer to companies as collective nouns.

    The U.S. (and its standards of English) are not the world.

  • Re:Good Riddence... (Score:2, Informative)

    by illuvata ( 677144 ) on Monday August 02, 2004 @11:44AM (#9862956)
    sun still has 5.7 billion in the bank, according to their from 10k [sun.com]
  • by chez69 ( 135760 ) on Monday August 02, 2004 @12:47PM (#9863362) Homepage Journal
    redhat distros run on the Z hardware also.
  • by IANAAC ( 692242 ) on Monday August 02, 2004 @12:58PM (#9863436)
    know that YaST for example wasn't for a long time. I've heard ramblings that YaST will be open sourced...

    YaST is already open-sourced. Has been for quite some time now.

  • by Anonymous Coward on Monday August 02, 2004 @01:30PM (#9863623)
    Sex on cocaine is really over-rated. If you can manage to get hard, you'll spend four hours fucking and still never come.

    Or so my friend says.
  • Bad move for Sun (Score:3, Informative)

    by grimover ( 212034 ) * on Monday August 02, 2004 @02:36PM (#9863922) Homepage

    In addition to slashdotters thinking its a bad idea, the Wall Street Journal Online has a follow-up report Novell Acquisition Would Be Bad Move for Sun, Analyst Says [wsj.com]

    Among the reasons the analyst lists (in case you don't want to subscribe to the WSJ Online):

    1. Sun buying Novell would eliminate Novell's (and SuSe's) hardware neutrality, upseting the interests of major Novell partners/shareholders IBM and HP/Compaq.
    2. A hostile takeover of Novell would seriously drain Sun's cash per share, removing a major price support for Sun's stock.
    3. After acquisition it is likely that Sun's hardware competitors (e.g. IBM, HP) would withdraw support for SuSe Linux. This would be bad for SuSe and bad for Linux in general, since part of IBM's and HP's investment and partnerships with SuSe are intended to prevent Red Hat from dominating Enterprise Linux.

      I would add:

    4. Spending a substantial portion of your company's cash reserves to buy a technology and intellectual property portfolio in order to suppress it (instead of exploiting it for profit) is a suicidal strategy. I don't think shareholders on either side would vote for that.
    5. If analyst consensus builds against this purchase, then its even more suicidal for Sun, since their stock would fall off a cliff (again) if they attempted it.

    I should also mention Novell recently raised $600 million in a corporate debt offering, about $125 million of which was for a stock buyback (not sure how that might affect their takeover prospects). The rest was for future acquisitions, the rumor on Wall Street is that the inside favorite for a future Novell acquisition is MySQL AB.

    That would be a great acquisition, adding MySQL to their software stack would complement both Novell's Mono and J2EE application server offerings. My personal favorite other acquisition would be Zend, giving Novell a LAMP application server software stack!

  • by Decaff ( 42676 ) on Monday August 02, 2004 @04:35PM (#9864590)
    Regarding 4Q profit:
    "Excluding one-time items, the network-computer and software company lost $169 million, or 5 cents a share" - CBS MarketWatch


    Translation: "Excluding the income that put Sun into profit, they made a loss." Well, honestly.

    Their cash assets alone are over 7 billion.

    My understanding is that Visual Basic is still the most widely used development language. Unless... perhaps you are confusing Java with C#?

    My mistake. I meant most widely requested development language in the Job market. I should have deleted the word 'used'. Visual Basic is second, and C# is not that widely used so far, especially in non-US development. At least as far as I can tell from job searches and market reports. It surprised me!

    Linux is not an "implementation of UNIX(TM)"

    OK - rephrase 'UNIX-like system' or 'system that does almost everything that UNIX does with lots of the same libraries, directories and commands, but with a better licence'.

  • by Jahf ( 21968 ) on Monday August 02, 2004 @05:22PM (#9864902) Journal
    At least officially, the open sourcing of Solaris is still a go. However, no firm date has been given and of course full diligence to protect 3rd party code would have to take place. In other words, definitely not tomorrow.

    I think you may be remembering that right after the Solaris open source announcement was made, someone else (without approval) said Java would also be open sourced. That statement was retracted with a statement that this option (for Java) is still under consideration but nothing firm has been decided yet.
  • by Paul Jakma ( 2677 ) on Monday August 02, 2004 @06:17PM (#9865260) Homepage Journal
    I don't keep track, but if there are any IBM-Sun negotiations or lawsuits going on, this comment probably has to do with that.

    IBM are one of Suns' main competitors. Both sell PC servers, RISC servers, Linux, Unix®, Java, software support, a range of "middleware" software and IT consultancy services.

    Sun, like all companies that actually have competition, will jostle for position with, make statements about and generally try to best and outsmart their competition. That's how competition works...

  • by Paul Jakma ( 2677 ) on Monday August 02, 2004 @06:52PM (#9865486) Homepage Journal
    Actually it is a product of the language spoken by Friesians and other tribes of Angles who settled in Britannia, mixed with latin. Then later the Vikings came along and settled in Angleland, mostly in the north and again influenced the language. Then a bunch of accountants, sorry Normans, (descended from the Vikings who invaded northern Gaul and settled with the local Gauls) invaded from France, and again influenced the language and culture.

    After that, England was never invaded again, and the language never again underwent radical changes, just slow evolution, through immigration, exploration and colonisation. Which is why Chaucer's Canterbury tales, 700 hundred odd years old, are still readable, even to a modern english speaker.

    I cant think of any differences in modern english that are a product of the USA, other than some trivial spelling and usage differences.
  • by kbahey ( 102895 ) on Monday August 02, 2004 @10:30PM (#9866368) Homepage

    I generally agree with you. Let me add a few points:

    You are right that Microsoft did not start the PC revolution that almost killed IBM, and later converted it in the humble giant. They were at the right place at the right time, and "sourced" an OS for the IBM PC (QDOS) from another company. They were a UNIX for PC (Xenix) shop (and Basic interpreter, ...etc.) up until then.

    I meant that they came in later after the then evil empire IBM tried to turn the PC proprietary by the Microchannel architecture (MCA) and OS/2. Then Compaq decided to not play catchup and innovate, and were in the market with the first 386 based on the then standard architecture. Microsoft had a fall out with IBM, and gave OS/2 to them, and decided to go it with Windows, then the rest was history.

    Microsoft may well have been a "bad" company, but they were seen by many as a force against the bigger evil (IBM) at the time. Something to undermine the monopoly of the big bad guy at the time. Sort of like the flawed mentality of: "the enemy of my enemy is my friend". This happens in day to day relationship, in politics, and world affairs, as well as in business.

The only possible interpretation of any research whatever in the `social sciences' is: some do, some don't. -- Ernest Rutherford

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