During a phone call a few days ago, The VAR Guy listened intently as Novell’s VP of Global Channel Sales, Pat Bernard, described her four-point strategy to rebuild the company’s partner organization. Although Novell faces an uphill climb in several areas, Bernard’s experience in the enterprise software space could be a plus.
Now 90 days into her position as Novell’s channel chief, Bernard has been evangelizing four key messages within the company and across the channel:
1. Novell will make partners profitable
2. Novell will invest in the growth of partners’ businesses
3. Novell has vowed to enable partners with sales and tech support
4. Novell will create a partner-centric company
Bernard, a veteran of Hyperion, has a knack for sticking with simplified messages. She’s also stealing a management page from former Chrysler CEO Lee Iacocca, who set his business strategies around two goals: Hiring good people and setting priorities.
One big priority for Bernard is listening to partners. For instance, Novell will host its EMEA (Europe, Middle East and Africa) partner advisory board during BrainShare, scheduled for March 16-21 in Salt Lake City, notes Bernard. Roughly 6,000 to 7,000 partners and customers are expected to attend the Novell conference. Roughly 30 EMEA partners will huddle with Novell behind closed doors to discuss the company’s channel program.
It’s good to hear that partners are still engaging with Novell. But let’s be clear here: Bernard is working to correct about a decade of missteps or false starts within Novell’s channel organization.
During its prime in the early 1990s — call it Novell 1.0 — the company had a robust channel organization and 60 percent server market share. Software, hardware and VAR partners eagerly displayed the “Yes” logo as a sign of their commitment and support to Novell NetWare. Then came Novell 2.0 — the mid-1990s, which was highlighted by several failed software acquisitions like Unix Systems Labs and WordPerfect. Novell 3.0, according to The VAR Guy, involved a flawed consulting push built around 2001’s Cambridge Technology Partners acquisition.
Novell Today
The VAR Guy posted a particularly harsh blog about Novell’s business prospects last month, but softened his tone quite a bit after a follow-up discussion with Novell Chief Marketing Officer John Dragoon.
Bernard concedes that Novell’s partner push is “a huge change management undertaking” on a global scale. “We’re flipping the switch” back to a partner-oriented business model, she says.
But that’s not to suggest that today’s Novell — company version 4.0 — can leverage the old NetWare channel. The company’s current product mix — SuSE Linux, middleware, endpoint security and identity management — requires a far different skill set than the old NetWare file-and-print days.
Still, Novell expects to leverage some of its legacy channel DNA. “A good percentage [of Novell’s workforce] has been on board for quite a few years,” says Bernard. “As with any company, you may have a few laggards and people who are resistant to change but I am impressed with how many people are ready to leverage our tribal knowledge.”
Challenges Ahead
On the upside, Novell has some growth-oriented businesses that will certainly attract partners. But positioning Novell’s individual products as complementary solutions could be challenging, The VAR Guy believes.
Dragoon makes a compelling case that Novell SuSE Linux benefits from the company’s added focus on middleware, identity management and endpoint security. But many Linux VARs that are looking to move up the food chain are focused more intently on databases (MySQL, Oracle, EnterpriseDB, etc.) and applications (CRM, ERP, etc.) rather than niches like identity management.
Perhaps the most balanced coverage of Novell comes from this recent piece in BusinessWeek, which ultimately states the obvious: CEO Ron Hovsepian has cut costs and is a well-respected leader who has helped Novell to amass a war chest that’s nearing $2 billion. But Novell needs to restore growth.
While Hovsepian focuses on possible acquisitions, Bernard should have her hands full rebuilding Novell’s channel.
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Nice to see Novell actually telling the media about its strategy for a change. I used to write about the company and always seemed to get a ‘no comment’ or vanilla interview from them. Are there any stats out there indicating how suse linux is selling/performing vs. red hat?
Well respected? Hovespan is the bozo who immediately sold out to Microsoft. I could put it more gently, be he doesn’t deserve it.
Since that instant I have not recommended any Novell product for any purpose. And I won’t until I see clear and certain evidence that no lasting harm has been done to any company (except Novell, about whose futures I no longer care). Just “You can’t show any harm yet.” won’t cause me to say a word in their favor. And I’m not even going to consider any technical offering they make, because it may well be poisoned.
The “sell out to Microsoft” bit is nonsense. I predicted at the time that the net effect on Linux and OSS would be zero - and that’s exactly what happened.
Nobody cares. Microsoft got nothing out of it except a little FUD.
I run openSUSE on my main machine and it’s better than the (X)buntus significantly.
It’s good that Novell is managing to stay in business and increase its business and build up a cash reserve to keep it in business. We need at least two large companies behind Linux, not just Red Hat - and companies that treat OSS as the core part of their business, not just an adjunct to their other commercial products and services, such as IBM and Oracle.
Bring back Netware and we’ll talk Pat.
Hi,
Firstly, I am on the Novell EMEA Partner Advisory board and have been for about 8 months now. I worked for Novell Consulting until 1996 and formed my own Company at that time (NetAssist/b2Lateral). We were a part of the original Novell Partner community from that point. We were also a Microsoft Partner as well. We saw the decline of the Novell Partner system as Novell went to a more direct model in the past and were ‘on our own’ with regards to sales and profit making with little or no real help from Novell. It should be pointed that we had little or no help from Microsoft as well. I worked for Microsoft Consulting as well and so know both companies well!
Microsoft has remained the same throughout our 12 years in the way they have helpded and competed against partners. But Novell has changed from a Partner led company until 1998 to a ‘direct’ company until 2007. I have seen positive changes in late 2007 and now in 2008 to believe enough in the New Novell Partner model that I have invested £/$ into my company.
Most informed people will agree that Novell technologies are amongst the best and that marketing is what Novell don’t do well. There is no way the Novell (or any other company) can compete with MS when it comes to Marketing. So it is ALSO up to us as Novell partners to market Novell to the client base. I have met Pat recently and have belief in what Novell are doing. Also, I don’t agree that Ron Hovsepian ’sold out’ to Microsoft, I think Novell did a very wise Marketing move with that and have helped remove one of the many ‘blocks’ Novell partners come across.
I know in my business (going for 12 profitable years now)- we make more money from Novell technology than we do from Microsoft or VMware from a % point of view.
I encourage any IT shop or business who wants to make money to investigate the Novell Partner channel options to see if they are for you.
I have not been paid or encouraged by Novell to write this article. I have written it because I have realised that marketing of Novell (and other ‘underdogs’ - no offense) is a part of my job as a Independant IT Consulting outfit.