Will VMware Snap Up Novell?

Friday Sep 17th 2010 by Amy Newman

The chattering classes are speculating overtime about what appears to be a possible deal.

Given that a VMware acquisition of Novell (or some part of it) could significantly change the tech landscape, speculation is running rampant. More details should follow soon.

At its VMworld trade show two weeks show, VMware CEO Paul Maritz disparaged the operating system, noting that it is being shunted aside as, "one of the implications is that more and more, traditional operating systems no longer see the hardware."

This is hardly a revelation. Maritz has been talking smack about the operating system for nearly as long as he's been CEO of VMware.

Why then, was the rumor mill in overdrive that VMware (NYSE: VMW) is about to swoop in like a vulture and pick SUSE Linux off of Novell's rotting carcass? (Rumors that were proven true as this article was being posted.)

Ok, that's a bit of an exaggeration, but the Wall Street Journal and a host of other publications reported Wednesday that according to the New York Post, "Novell has reached a deal in principle to sell itself in two parts, and will be signing a deal in three to four weeks." A private-equity firm is speculated to be buying the bulk of the company, while another buyer will purchase the business units of of Novell that develops and delivers SUSE Linux.

Read the rest at ServerWatch.

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