Novell: Will Thin Desktops Equal Fat Profits?

by: Joe Panettieri March 22, 2007 | about stocks: NOVL    
  • Font Size:
  • Print
Novell (NOVL) is quietly launching a thin client offensive with Wyse Technology. Although I have criticized many of Novell's recent moves, this thin client approach is super smart.

In a recent chat, the newly appointed Wyse CEO Tarkan Maner described to me how thin clients have, indeed, found a home on millions of corporate desktops. JP Morgan Chase is deploying 50,000 Wyse thin clients. Other true believers include Merrill Lynch and Morgan Stanley, Maner says. In the retail sector, Wal-Mart plans to use 100,000 Wyse thin clients, according to Maner.

Now, imagine if a hefty number of those thin clients ran a specialized version of Novell SuSE Linux. It could happen, folks, thanks to a relationship between Wyse and Novell.

Ironically, Microsoft's (MSFT) Windows Vista's release (and less-than-impressive sales) may actually drive more customers to thin clients. "Vista was God’s gift to Wyse," quips Maner. "When [Vista's launch] was announced, I was partying at home. I am not exaggerating. I bet it’s a phenomenal OS, but it requires so much memory." Maner qualified his statement by saying he expects the majority of PCs to run Vista but there's plenty of market opportunity left for thin clients.

Eventually, Wyse and Novell hope to march right into your home. Over the next few months, Maner says, he expects major ISPs and telcos to offer broadband services that come bundled with thin clients for the home. With any luck, Novell certainly hopes, those thin clients will have SuSE Linux inside.

NOVL 1-yr chart
NOVL

Disclosure: Author has no position in the above-mentioned companies.

Joe Panettieri

Joe Panettieri

About this author:
Become a Contributor Submit an Article

Related Articles

This article has 1 comment:

  •  
    Mar 22 01:28 PM
    I don't doubt that Wyse is moving a lot of units but whether Novell can generate any meaningful revenue out of this is doubtful. I'll believe it when I see it.
    Reply | Link to Comment
More Comments on NOVL »
More by Joe Panettieri
Investment Resources
Money Management
Research
Seeking Alpha provides these ads as a service to its leading contributors
Articles on related themes
Enterprise Software
Application Software
Gaming Software
Operating Systems