BIZCHINA / Top Biz News
Novell eyes local buyout
By Wang Xu (China Daily)
Updated: 2006-12-21 09:47
Novell Inc, a provider of networking software and computer consulting
services, is in talks with local software companies for acquisitions to
bolster its growth, a senior company official said.
"We have been talking with several local Linux software companies for
possible co-operation, including acquisition," said Sen Ming Chang,
Novell's vice-president worldwide and managing director for its East Asia
operation.
He declined to give further details.
Novell is now the world's second-largest distributor of Linux, an
operating system distributed over the Internet that is becoming an
increasingly popular alternative to Microsoft's Windows.
"Although we have no timetable for acquisition," said Chang, "it's clear
that we have to establish closer co-operation with local Linux companies
to grow faster in the market."
The US-based company has been stepping up efforts to tap the fast-growing
Asia-Pacific market, especially China. In 2005, it reached an agreement
with the China Standard Software Company, a local Linux developer, to
develop both Linux servers and Linux desktop offerings for the Chinese
market.
Novell, now the leading player in China's Linux market, hopes to notch up
30 per cent growth this year in China, according to Chang.
The company has made headway in 2006 with its alliances with equipment
suppliers such as US-based IBM and Dell.
The company is now working with IBM in Japan to implement its largest
Linux projects.
In China, It is also talking with several Chinese computer makers to
install its SUSE Linux operating system in the computer makers' factories.
This November, Novell and Microsoft reached a deal to develop
technologies to make it easier for users to run both SUSE Linux and
Microsoft Windows on their computers, which is expected to greatly help
Novell outpace its competitors.
US-based Red Hat is currently the largest distributor of Linux and
Silicon Valley-based Oracle also launched its own programme for Linux
this October.
"The general user reaction is very positive," said Maarten Koster,
Novell's newly appointed president of Asia-Pacific operations. "It gives
customers a clear signal that they can move to a Linux environment with
confidence."
Besides its alliances strategy, Novell is also focusing on growth markets
such as China and India to grow faster than the marketplace.
"I expect the Asia-Pacific region to be a very strong growth engine in
the coming years," said Koster, a former IBM veteran.
The company is considering moving its Asia-Pacific headquarters from
Australia to Singapore to be closer to the market.
It will also shift some major R&D projects to China to lower costs and
better satisfy market demand.
(For more biz stories, please visit Industry Updates)
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