While Novell's report yesterday that its quarterly Linux revenue soared 22 percent year-over-year was a positive note, and one that was expected, the real upshot of the company's earnings report was that every other part of its business sank. Overall, its revenues slipped to $216 million for the quarter, compared to $245 million for the comparable quarter last year. Despite the company's drum pounding about the promise and growth of its Linux business, Novell is a public company that needs revenues to come from more than one aspect of its business.?
As Matt Asay notes, Red Hat's financial performance has been much rosier during the recession, but there are also questions arising about why Red Hat's revenue growth is slowing. Both companies need more than just Linux business to grow over the long run, and there are good reasons to believe that Red Hat may be the one of the two that pulls a rabbit--or a series of them--out of its red hat.?
