INTERVIEW-Novell sees Asia opportunities
By Andrea Tan
SINGAPORE, Oct 14 (Reuters) - Asia's economic crisis has created unexpected opportunities for U.S. network software provider Novell Inc, a senior executive said on Wednesday.
''In some of the crisis countries, where governmental action has been taken to force restructuring in some industries, it has actually created opportunities for us,'' Novell Asia Pacific Vice Chairman Keith Osborne told Reuters in an interview.
Osborne was attending the East Asian Economic Summit, a meeting of top corporate leaders, government officials, and economists.
He said bank restructuring in Indonesia, South Korea and Thailand had resulted in firms needing to integrate their internal computer systems quickly.
''Those are the three countries where we have benefitted out of some of the restructuring,'' he said. ''We have seen business flow from where we didn't expect it before.''
Osborne said Novell's products in Malaysia had become cheaper for Malaysian residents after the ringgit was pegged at 3.80 to the dollar last month.
Before the currency controls, the ringgit was trading above 4.20 to the dollar.
''If our products are cheaper and the opportunities exist, then that's good for Novell, and there are opportunities there,'' he said.
He said Novell had been buffered from Asia's economic crisis but had some payment delays due to the credit squeeze.
''Asia Pacific has kept pace with roughly the same percentage. It hasn't been a 50 percent drop or anything like that,'' he said.
For the third quarter ended July 31, Asia Pacific contributed about US$19.2 million, or seven percent, to Novell sales of US$272 million. Osborne said he expected Asia's contribution in the coming quarters to remain fairly stable.
Osborne said Asia was a region of opportunity as governments and institutions were focused on networking and the Internet.
''Clearly, our strategy is in networking and the Internet. I think our product set is very much in line and parallel with what a lot of organisations want to do,'' he said. ''Novell is well positioned to gain from this.''
Osborne was upbeat especially on China.
He said Novell had new plants in Beijing and Kuala Lumpur with a Shanghai one in the pipeline.
Last week, Novell raised its investments in India to 1 billion rupees from the current 600 million rupees.
''That gives us the flexibility over the next 12 months to add people and testing and development facilities in those countries. We have taken the opportunity to position ourselves when that turnaround occurs,'' he said.
''Because we do believe that a number of those countries are going to turn around in that time frame.''
He said Novell delayed plans to have a physical presence in Indonesia when the May riots broke out which helped topple former President Suharto.
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