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Market Roundup March 24, 2006 Novell Announces the Platform for the Open Enterprise Novell to Deliver First Linux Workgroup Suite HP Bolsters Performance with the Latest Integrity Server Offering |
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Novell Announces the Platform for the Open Enterprise
Earlier this week at BrainShare 2006, Novell announced the
Platform for the Open Enterprise, an architecture of
software and services from Novell and its partners designed to help
organizations benefit from open source and open-standards-based computing. SUSE
Linux Enterprise 10 was identified as the core of this platform. In addition,
Novell announced enhancements to its security, identity, and collaboration
offerings; a significant expansion of its partnership with Dell; and expansion
of its Market Start program for several product lines. SUSE Linux Enterprise 10
is positioned as raising the bar for enterprise Linux computing, with
substantial performance, virtualization, and management enhancements. Novell
ZENworks 7 Linux Management – Dell Edition offers integrated hardware and
software management capabilities for Linux-based Dell PowerEdge servers for
customers seeking to deploy, manage, and maintain hardware, operating systems,
and applications from a single console. Wireless GroupWise integration with new
solutions with Intellisync and Research in Motion provides a new level of
mobile support. The new Open Workgroup Suite includes server and desktop
platforms with complete management tools, email and collaboration, and office
productivity software. The company announced its long-term plans for Novell
Open Enterprise Server and that will also support NetWare as long as customers
demand it. In addition, Novell announced an expansion of the Novell Market
Start program with open source vendors Alfresco, Black Duck, EnterpriseDB, SpikeSource,
and Novacoast having joined the program that seeks to promote innovation and
open source adoption through leverage of Novell's global sales and marketing
channels.
This was a big week for Novell. Besides hosting what the
company stated was its largest user conference ever, the product announcements
were numerous and for the most part an impressive fulfillment of the stated
directions announced at last year’s BrainShare. While there were several announcements
made, without a doubt Linux was the fulcrum on which all other announcements
revolved. The announcement of SUSE 10 in both server and desktop editions
illustrates a creative and market-leading approach that combines the best of
vendor source and open source software in a commercial grade offering replete
with the support, maintenance, training, services, etc. sought by most any
organization. The value-added capabilities of other Novell software rest on top
of an operating system base of either Linux or NetWare not only to create some
rather extensive network infrastructure services but also to provide a wide
reaching identity management, security, collaboration, and mobility-enabled
access paradigm.
To us, perhaps the greatest single component of the announcements was SUSE 10 for the desktop, which we analyze below. But beyond SUSE 10, Novell has been busy working with ecosystem partners and beginning to articulate a business-focused marketing strategy as opposed to a technology-focused discussion. We find this refreshing. Novell has a large loyal customer base; however, the company needs to reach new markets and customers to really be able to grow in the future. A business-focused discussion that brings to light the viability of and commercial-grade support for open source and value-added vendor-sourced technology is an elixir that we believe many would want to partake of. Add to this an increased focus on mobility with respect to collaboration and identity management, and much of Novell’s marketing thrust is coming in close alignment with the needs of organizations of most any stripe. This is good news for the big red N. However, Novell still suffers from a perception held by many that it is a great brand they have heard of, and even used at one time, but that they do not truly know what it represents today and how the company is relevant in the 21st century. Thus, some highly targeted and effective marketing is in order so that Novell can cultivate some of the latent demand for what it can deliver into customer engagements. Nevertheless, we believe Novell has undergone a considerable transformation over the past year or so and has stepped up to the plate in the quest to regain its heritage as a viable player in the infrastructure and desktop software marketplace.
Novell to Deliver First Linux Workgroup Suite
Novell has announced what it states is the first open
standards-based workgroup suite. Novell Open Workgroup Suite (OWS) includes
server and desktop components that feature management tools, email,
collaboration, and advanced open source office products. The offering includes
the Linux version of Novell Open Enterprise Server, GroupWise for Linux, Novell
ZENworks Suite, SUSE Linux Enterprise Desktop, and OpenOffice.org. Pricing is
$110 per device/user for a perpetual license and $75 annually for software
maintenance. For existing NetWare customers, the suite is available with the
NetWare version of Open Enterprise Server and cross-platform GroupWise,
available as an upgrade bundle to existing customers of NetWare, GroupWise, ZENworks,
or competing products for $150 per user/device. A rental option will also be
available for both offerings. The scheduled availability for the Novell
Workgroup Suite is early May.
For years we have witnessed much spilled ink touting Linux’s
low cost, open source, free-for-taking approach to software with many positing
that it would lead to the demise of Microsoft’s hegemony over corporate desktop
operating systems and office productivity applications. To date, this has
largely been the delusional fantasy of religious fanatics that are hell-bent on
venting their frustration at Microsoft’s ability to create two seemingly
unstoppable cash cows of out this market opportunity. However, the problem has
not convinced organizations to give up their love affair with Software
Assurance, or what many consider increasing feature bloat or the
convenience-over-security approach taken by the Redmond Giant, but rather that
any proposed alternatives have been far less than “good enough” and did not
have the commercial trimmings requisite to be seriously considered as an
alternative. With OWS, we believe this reality has changed.
From a simply visual standpoint, the GUI on SUSE Linux Enterprise Desktop (SLED) is familiar, and perhaps to some cleaner than that of XP, but beneath this pretty veneer is the host of utilities and basic application features such as word processing, spreadsheet, multimedia, presentation, Internet access, email, calendar, etc. that are needed by the bulk of corporate information workers. In addition, SLED has quite a bit of cool factor in its rotationally adroit multiple desktops on a cube interface. In short, the desktop aspect of OWS has in our view reached the “good enough” bar for serious consideration as an alternative to Microsoft’s desktop. While we do not expect companies to suddenly dump Microsoft’s solution overnight, given the significant minimal hardware requirements for Vista and the expense of upgrade and retraining organizations would face; for many, a switchover to OWS would instantly add life expectancy to their desktops, reduce their financial outlay, and not require substantial changes to the environment already familiar to the majority of information workers. So although the OWS desktop will not be a panacea for many classes of power users or those with specialized applications, for the great masses a viable alternative has in our opinion has finally emerged. When combined with the substantial back-end infrastructure capabilities of ZENworks along with GroupWise, the pricing and performance offered by OWS is bordering on disruptive. While Windows Vista—or whatever its final name will become—may come to represent a substantial upgrade opportunity for Microsoft, it may also unleash a considerable upgrade opportunity for Novell. So grab a bag of popcorn and a cold drink and let’s watch as the real battle for the corporate desktop begins.
HP Bolsters Performance with the Latest Integrity Server Offering
HP has announced the latest offerings in its Integrity
server line and HP-UX 11i operating system which deliver significant upgrades
to capacity, virtualization, and systems management. These enhancements offer
customers increased server capacity as well as faster deployment of software
within an HP Virtual Server Environment (VSE) found within HP-UX 11i. The
next-generation chipset for Integrity servers delivers performance enhancements
by enabling 30% more throughput across multiple workloads for the same number
of Itanium 2 processors. This chipset is available today in the cell-based HP
Integrity rx7640, rx8640, and Superdome servers, and provides single-system
availability to improve memory availability, interconnectivity, and fault
tolerance. Security is enhanced through the HP-UX 11i Encrypted Volumes provided
while HP Competent Cluster Service and HP Cluster Extension software for HP
StorageWorks EVA and XP now deliver enhanced high availability and seamless
failover. HP also announced solutions for HP-UX 11i disaster tolerance that
include intercontinental failover of Oracle 10g environments and support of
SONET as well as new HP Serviceguard Extensions for SAP to improve the speed
and simplicity of high-availability solutions for HP-UX 11i and Linux on HP
Integrity servers. The company also noted that the multiple operating system
ability of Integrity servers is now supported by more than 7,400 applications
including availability of additional HP OpenVMS products. HP also announced the
Integrity NonStop NS14000 and the telecom customized NonStop NS16000, the
latest additions to the HP Integrity NonStop family.
Showing that it is never one to let a chance to extol the
virtues of high performance pass by, HP is clearly excited by its latest high-performance
offerings and for several reasons. Although the company is relentless in its
insistence that Itanium is an industry standard, looking beyond this wishful
thinking, the capabilities of the Integrity servers are notable and with this
announcement, even faster. Although speed improvements are part of an ongoing
thrust enjoyed by vendors in their quest for benchmark superiority,
improvements in the chipsets that surround a processor delivering a 30%
performance boost are nothing to sneeze it. This is a simple reminder that
while many fixate on the clock speed of CPUs, the reality is that overall
performance in dependent upon many factors including other chips found on the
motherboard. By optimizing this aspect of the system, HP has boosted performance
without relying solely on faster and more expensive CPUs, and thus has created
additional value for customers, without necessarily eroding its profit margins.
This kind of a system—as opposed to CPU focus—is an example of one of the
competitive advantages that HP has held over the years, continued R&D
investment in building a better mousetrap.
Many of the other enhancements to the servers and the accompanying operating systems are valuable especially in the high-performance and/or high-reliability computing space. Business continuity along with disaster recovery remain an ongoing concern for organizations and HP’s focus on critical business software such as Oracle and SAP in its high availability endeavors are well positioned to address the concerns of larger enterprises as well as those who simply demand platinum-grade availability from their IT infrastructure. Enhanced virtualization is also a key aspect in high availability as well as a continuing opportunity for organizations to achieve a higher ROI from their computing investments. Overall, we are impressed by the tenacity of the Palo Alto company, and its ongoing commitment to engineering creativity. However, given today’s market environment where business-focused messages are increasingly trumping technological ones, we are quick to point out that while HP has a pedigree in engineering fortitude, the company is not as skilled at maintaining a business-focused discussion of its capabilities. In the long haul, we believe this is the challenge that will prove more daunting to the company than any question of its ability to craft high caliber technology.
Microsoft has reached an agreement with Deutsche Telekom
for Internet Protocol television (IPTV) services to German consumers. With the
contract, Deutsche Telekom will be able to offer IPTV including standard and
high-definition programs, interactive TV, and complementary interactive
services and entertainment products such as digital video recording and video
on demand, as well as content packages including feature films, TV series, or
documentaries over its forthcoming VDSL (very high rate digital subscriber
line) network. VDSL transmits data in the 13 Mbps to 55 Mbps range over short
distance, usually between 300-1500 meters of twisted-pair copper wire, on the
principle that the shorter the distance, the faster the connection rate. This
technology is often used in lieu of more expensive fibre optic for the final
length to the household or office. The network is expected to be launched in
mid-2006 in ten major German cities. Deutsche Telekom will use Microsoft TV
IPTV edition software platform. The two companies will engage in joint
marketing in Germany. This contract is Microsoft’s largest IPTV contract in
Europe and its second largest in the world. Microsoft also has IPTV agreements
with AT&T, Verizon, Swisscom, British Telecom, and Telecom Italia.
Microsoft has certainly done the work to position itself
with the major service providers in Europe and the U.S. and take the lead in
driving IPTV forward from future to actual product. The statistics from various
quarters predict that uptake of IPTV services will take off as service
providers roll out their offerings. Microsoft has indicated its intention to be
a leader in the developing home entertainment market, and working with the SPs to offer IPTV is the first step in building that
empire.
While Microsoft has the software, a necessary component to making IPTV work, the content is the much more important issue at this point. Users will line up for the personalization of content, but it had best be content they want with real value. Consumers who have tried IPTV and discontinued it will find the difference between IPTV and satellite or digital cable offerings still notable. Satellite and digital cable providers still offer richer offerings and broader content. We understand that this is a point-in-time issue rather than a long-term gating factor, but the issues of content management are complex and going to take time to resolve. While some users may choose IPTV because they have fewer options, pricing is going to have to meet content levels and customer service is going to have to be good. Service providers are used to a binary approach to customer service—either the service works or it doesn’t—but media customers want SPs that are responsive to their needs, who can market their value proposition clearly, and who offer packages that meet genuine customer wants. IPTV should not be about re-broadcasting in time shifts; it should be about the foundation of creating individualized entertainment hubs so that sports addicts can get the teams and sports they want, so that content fits viewer interests, and so that people who want niche products—foreign languages, specialty programs, or genres—can get the programming they are willing to pay for. While online retailers have had leadership in creating sub-segments and nurturing them, the mainstream software vendors and service providers have maintained a small-medium-large or one-size-fits-all approach focusing on mass-market, general-purpose products and services that will not drive IPTV to its full potential. To make this market succeed sooner rather than later, much work remains beyond setting up the networks and getting the software infrastructure in place.