| Novell targets the SMB market with partnerships |
Jan. 30, 2006
On January 30th, Novell Inc. announced that it will start bundling support and training offerings with SUSE Linux Enterprise Server for small and medium-sized businesses via its channel partners.
This news came only days after Novell announced that, as of March 1st, the Linux company will no longer force users into CLAs (contract license agreements), which attached service and maintenance agreements to the software deal.
Novell made it clear that with this new offering, Novell solution provider partners would be the ones that would be delivering support and online assistance to SMB customers.
For customers, Novell also pointed out that it provides free training
"We are seeing a growing interest in Linux by small and medium size businesses," said Jodi Honore, vice president of vendor management at major distributor Ingram Micro Inc.
"With an offering that is easy to explain, deliver, and support, solution providers, previously apprehensive of taking on a new operating system, can now build their Linux practice and gain new customers," Honore said.
One reason why Novell is making this move is that SMBs look to local-based solution providers for IT advice and support. Novell claims that by providing an integrated Linux technology, support, and training offering, it gives its channel partners a solution that is easy to explain, deliver, and support for their customers.
"There has been significant focus on the public sector's use and adoption of Linux and open source -- and this is understandable if you think of the high potential," Tom Ekevall Larsen, president & CEO of Scribona AB, a Swedish Novell partner, said in a statement.
"Novell is now raising the bar for the mid-market and giving its partners a really powerful tool with this integrated Linux solution that includes a full package of media, technical support and training. This provides companies like ours with everything we need to help our customers to be even more successful with their Linux strategies," Ekevall added.
Novell president and COO Ron Hovsepian said, "This new offering delivers a compelling, easy to deploy solution that gives small and medium sized businesses a boost by providing the technology, skills, and support they need to drive real business value from open source."
There may be other reasons, though, such as competition with Linux market-leader Red Hat Inc. Stacey Quandt, research director for the Aberdeen Group suggested that, "The ongoing trend of organizations acquiring a Linux distribution through their hardware provider has traditionally created areas of cooperation between Linux distribution providers and IBM, HP, Dell, Sun, and others."
Therefore, "by decoupling maintenance, upgrades, and service and support, Novell creates potential upsell opportunities for itself, channel partners, and original equipment manufacturers. In addition, by expanding the channel revenue capture opportunities, this will open new market opportunities for Novell," concluded Quandt.
--Steven J. Vaughan-Nichols
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