| Novell changes leadership, stays Linux course |
Jun. 22, 2006
Early on the morning of June 22, Novell Inc. announced that its board of directors had fired CEO Jack L. Messman and CFO Joseph S. Tibbetts, Jr. In Messman's place, the board appointed Ronald W. Hovsepian, who had been president and COO since October 2005.
Messman, who had presided over Novell since 2001 when Novell acquired his Cambridge Technology Partners company, and Tibbetts left Novell's employment on June 21. In Tibbetts place, Dana Russell, Novell's current VP of finance, has been appointed interim CFO. Messman will, however, remain on Novell's board of directors until Oct. 31, 2006.
Novell also announced that Thomas G. Plaskett, a director of Novell since November 2002 and former CEO of both Pan Am and Continental Airlines, was elected non-executive Chairman of the Novell Board.
Plaskett explained that "The board concluded that a management change would be the best way to accelerate the execution of our growth strategy and build value for shareholders. Ron is the ideal choice to lead the company as we continue with our transition to Linux-based products and identity and resource management and leverage our unique support of mixed source environments."
Before coming to Novell, Hovsepian had been general manager of IBM's worldwide distribution industries. In this position, he managed global hardware and software development, sales, marketing, and services.
"He is a talented and proven executive with deep knowledge and expertise in the infrastructure software business and the enterprise market," Plaskett said.
"Following his 17 year career at IBM and other industry experiences, Ron ... has played an integral role in developing the company's operating strategy and fully understands Novell's compelling growth opportunities. He has forged close relationships with key customers and is highly regarded by the Board and employees throughout our organization."
Hovsepian said: "I am very enthusiastic about the opportunity to lead Novell and to aggressively execute our strategic plan. In recent months, we have adopted a comprehensive strategy, strengthened our portfolio through both acquisitions and organic growth, and divested the non-core Celerant business [story]. Although we still have much to do, these steps have positioned us to take full advantage of recent trends towards a mixed source computing environment based on open source and open standards."
"Going forward, we will maintain a sharp focus on meeting customer demand and delivering value through Linux-based, enterprise-wide solutions and identity and resource management products. We have innovative technology, a strong roster of customers and business partners, and an extremely talented group of employees. I look forward to continuing to work closely with our business partners and customers."
Plaskett added, "The Board is grateful for Jack's and Joe's service to the company. Jack has been a director since the company's founding, and he and Joe helped lead Novell through a period of dramatic change in the software and information technology sectors. In particular, the company's decision under Jack's leadership to adopt an open source-based strategy put Novell at the center of one of the most significant computing developments in the last decade."
While Novell has embraced Linux and open-source with its acquisition of Ximian and SUSE, it has been unable to profit from these technologies as quickly as many of its investors would like.
Messman, and his plans for Novell, had been criticized since last fall by major stock holders Blum Capital Partners LP investment firm and Credit Suisse First Boston on several fronts. Messman, analysts at both firms felt, had not been moving fast enough to cut the fat from Novell.
Last fall, these investors wanted Novell to divest its "non-core businesses," such as ZENworks, GroupWise ,and Cambridge Technology Partners. Both also want Novell to become more of a leader in Linux and identity management through joint ventures and selective acquisitions.
Given this public opposition, along with Novell's recent lack-luster financial results, few were surprised when the board dropped the axe on Messman. The former CEO himself, though, had intended to stay the course.
In a March Linux-Watch interview, Messman said, "I've been around the company a long time, and I love it. I'm in good health and I see nothing like retirement on the horizon. If the board ever decided I should leave, I'd go. But I enjoy the business, and have no plans to leave.
-- Steven J. Vaughan-Nichols
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