Why $1B Isn't Enough to Save
Novell
Jesse Berst, Editorial Director
ZDNet AnchorDesk
Pride goeth before a fall. Or, in Novell's case,
after one.
Novell has fallen from its former spot as the leader of the
networking business. A few weeks ago I suggested a
merger with Cisco was the best way for Novell to return to
glory. But when I took this suggestion to Novell president
Joe Marengi, he said pridefully that Novell could recover
without help. (For more on the reactions of Marengi and of
Cisco CEO John Chambers, read the articles linked at left.)
Novell doesn't need help from anyone, says Marengi.
Instead, he will use the $1 billion left over from Novell's
salad days to buy other companies and technologies.
I admire proud, self-reliant people, but Marengi's wrong.
Novell doesn't need to buy more technologies to squander.
It isn't getting full value from the ones it owns already.
Unfortunately, Novell and Marengi will have to be pushed
before they do the right thing. Several influential groups
have taken up the hue and are insisting the company take
bold steps. The articles linked to the left, for instance, talk
about investor organizations, Usenet discussion groups
and large institutional investors who are now publicly
clamoring for action.
Joe Marengi should not waste his company's dowry
courting small companies. Novell will never return to the
prominence it deserves without help. I think Cisco is the
right choice. But even if it is some other company, Novell
needs to settle down permanently with a strong partner.
Only a merger can rescue Novell from an Apple-style slide
into irrelevance. |
