After reporting soft second quarter results on May 28, 2010, Novell Inc. (NOVL), a leading technology software company, is looking forward to enhancing its intelligent workload management (IWM) strategies.
The latest introduction by Novell, to extend its reach into the software market, is new versions of three of its PlateSpin Workload Management products – PlateSpin Migrate, PlateSpin Protect and PlateSpin Forge.
These new entrants will support both Linux and Windows operating systems, allowing migrations of workloads in a three dimensional way – physical to virtual, virtual to physical, and physical to physical. In addition, PlateSpin Forge and PlateSpin Protect provide consolidated disaster recovery solution for both Windows and Linux, including SUSE Linux Enterprise from Novell.
As the demand for cloud computing continues to mount, we expect Novell to capitalize on its workload management solutions. Since virtualized and protected workloads are a prerequisite to a cloud computing environment, Novell’s PlateSpin Workload Management product line should do quite well.
We also expect more customers to adopt Novell’s Intelligent Workload Management Solutions due to its ability to reduce cost, complexity and risks regarding challenges of computing across physical, virtual and cloud environments.
Apart from this, NOVL announced the launch of SUSE MeeGo, which is a fully supported operating system for netbooks. MeeGo is an open source operating system based on the Linux platform combining Intel’s (INTC) Moblin and Nokia’s (NOK) Maemo projects into a single platform for the next generation of smartphone devices, netbooks, notebooks, tablets or other connected mobile gadgets.
The Enterprise software maker expects the application to be adopted by Original Equipment Manufacturers (OEMs) for installing on a variety of devices over the next twelve months. The successful adoption is sure to give a boost to revenue and help market share gains in the upcoming quarters. The planned shipments will also expand Novell’s leadership position as the leading OS vendor in the desktop Linux market.
Though Novell witnessed a 5.4% year over year decline in revenue, led by weak performance across its business segments and a 6.1% decline in its Linux platform products, we remain encouraged with product line ups, investor sentiments and potential IT spends.
We currently have a long-term Neutral recommendation on the stock.
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