Novell Cancels Brainshare…
How bad is the economy? Novell has just canceled BrainShare, one of the IT industry’s long-standing events. Initial perspectives from Matt Asay (Blogger, The Open Road). Plus, here’s the official statement from Novell Chief Marketing Officer John Dragoon.
There is a consensus on this board that there is no money to be made selling Novell software, however, some people make the misstatement that there is no money selling operating systems and email collaboration packages, in general. This is just plain wrong and ignorant. There are operating systems, email collaboration, virtualization software, and IT management software that one can make money on selling. As a matter of fact, I find Novell appears to be the only software manufacturer where a small VAR can’t make any money selling. As a result, we don’t sell it. We tell our customers exactly what Novell tells them: ‘Buy it online. It’s cheaper and easier.’ and then I always make sure to followup up with: ‘In the meantime, you may want to upgrade to a Microsoft solution, because I can sell you this and make money for myself and my firm, and you don’t have to deal with an online reseller.’
As of late, however, I did receive some updated information that Novell is addressing the ‘no margin’ problem for their small resellers in 2009. I am skeptical, but if it is true it may represent an opportunity for my firm to provide an open source solution on that I can make money with. The problem with Novell is not the products or reliability and support of their products, it is purely a sales/marketing problem. They have provided the large online retailers with the most favorable margins, but noone there ‘sells’ Novell, they just call my Novell users and try to whore up the price forcing me to once again recommend Microsoft, to get myself and my customers as far away from this nonsense as possible. I get no respect from the folks at Novell and that is fine because Microsoft respects me and acknowledges the help I provide them in closing deals and stamping out the competition. But that is meaningless too, however, they pay a higher margin and that is all that matters to me…
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