Novell Inc. (NOVL), a leading technology software company, announced consolidation of its 4 business units into 2 to better streamline its business and focus on core operations.

The company’s Identity and Security Management (ISM), Systems and Resource Management (SRM) and Open Platform Solutions (OPS) business units will be incorporated into the new Security, Management and Operating Platforms business unit. The reorganization of the business units is expected to take place from Jan 1, 2010.

To better conduct these operations, the company also shuffled management positions. Jim Ebzery, the Senior Vice President and general manager of identity and security management will become the head of the new unit.

The reorganization of its structure and management will better align Novell’s business and help the company become the leader in the emerging Intelligent Workload Management (IWM) market.

Novell’s organizational restructuring will help it achieve the targeted expense reduction and bottom line growth. The company is accelerating business-restructuring initiatives, emphasizing on cost reductions and strengthening the synergy of integration. We remain positive on the company’s restructuring initiative.

Novell is also expected to benefit from its broad distribution channels. The company has partnership agreements with Affiliated Computer Services, Inc. (ACS), Dell Inc. (DELL) and SAP AG (SAP), which will help drive revenue growth.

While the current outlook and weak demand continue to reflect the adverse and uncertain economic conditions currently affecting Novell’s businesses, we believe this is only a temporary phenomenon, and the long-term growth story remains intact. We remain positive on Novell’s strong operating margins and continued focus on cost reductions.

We have a Neutral rating on Novell’s shares.

Zacks Investment Research

1. (NOVL) Novell’s Earnings Beat ExpectationsA leading technology software company, Novell, Inc. (NOVL) reported fourth-quarter earnings that beat the Zacks...
2. (NOVL) Earnings Preview: NovellA leading technology software company, Novell Inc. (NOVL) is set to announce its fourth quarter...
3. (PAY) VeriFone Holdings Forms Global Security Solutions Business UnitVeriFone Holdings Inc. (PAY) recently announced the formation of its Global Security Solutions Business Unit....
4. (NOVL) Novell Reports Mixed ResultsNovell, Inc. (NOVL), a leading technology software company reported mixed third quarter results with revenue...
5. (GE) General Electric to Sell Security BusinessGeneral Electric (GE) is arranging to sell its security business, which makes alarms, surveillance systems...
6. (UIS) Unisys Completes Debt ExchangesEarlier this month, Unisys Corporation (UIS) announced that it successfully completed its previously announced private...

Search Posts by Tag: ACS | Affiliated Computer Services Inc | DELL | Dell Inc. | Novell Inc. | NOVL | SAP | Sap Ag | Security Software & Services | Technology

RSS Feeds by Tag: ACS | Affiliated Computer Services Inc | DELL | Dell Inc. | Novell Inc. | NOVL | SAP | Sap Ag | Security Software & Services | Technology |

Other Posts by: vitalstocks | RSS Feed for this author