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October 30, 2009 1:26 PM PDT

Is this how Novell treats its customers?

by Matt Asay
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Technology companies are generally quick to publicly announce and highlight their customer wins. But in what strikes me as a first, Novell has publicized a customer loss, announcing to the world that the City of Los Angeles dropped it for Google Apps, including Gmail, Google Calendar, and Google Docs.

Who at Novell could have possibly thought this was a good idea?

Google recently announced the City of Los Angeles as its latest high-profile customer win for Google Apps, one that reflects growing momentum for the cloud-computing giant's enterprise business. Until Novell's announcement, I had no idea that Los Angeles had dumped Novell GroupWise in favor of Google Apps, and suspect few others did, either.

Novell, however, attacks Los Angeles' decision, arguing "The City of Los Angeles should have opted for this proven product [GroupWise] to ensure the security of its data and to save taxpayer money. They have taken a risk with no reward."

Translation? "We think Los Angeles is run by a bunch of fools who aren't smart enough to know what's good for them."

This is no way to treat customers.

It's not made any better with this throwaway line: "However, as a valued customer, Novell will continue to offer our world-class support to the City of Los Angeles during the transition."

Well, that's comforting, but given that it comes at the tail end of Novell publicly excoriating its "valued customer," it's doubtful that LA will linger long with such a "valued vendor."

This isn't the Novell that I know. I used to work for Novell, and have never seen the company publicly criticize a customer, not even for defection, of which Novell has seen plenty over the last decade.

It's unclear who Novell is hoping to persuade with the announcement, or what benefit it hopes to derive from it. Is it trying to stem a tide of customers dropping GroupWise for Google Mail? If so, why has it not done the same for all the companies (and there have been plenty) leaving GroupWise for Microsoft Exchange or IBM Notes/Domino?

In fact, the only companies that benefit from this kind of customer abuse are IBM and Microsoft, because Novell slams Google Mail's alleged security and cost deficiencies, without them having to sully their hands with the negative marketing. It certainly won't endear Novell to the City of Los Angeles or to its other customers.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
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by kwhsy82 October 30, 2009 1:40 PM PDT
In public bids, it's actually pretty typical for a vendor that lost to defend its bid.
As a very high profile example, consider Boeing tankers for the Air Force.
Sometimes this is done to get read for an appeal. Sometimes this is to save face after a public loss, since other customers may be looking at the bid results.
They didn't slam LA they simply defended the merits of their product. I doubt LA is surprised in the least.
In more aggressive cases, vendors do in fact "attack" the deciding body, as in, "We don't believe the committee correctly applied its decision criteria" or "The committee ignored relevant factors such as the long-term maintenance costs of the bridge design."
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by MadLyb October 30, 2009 1:56 PM PDT
Agreed.

The public sector is a different animal, and many vendors behave in a manner that would be considered outrageous for interacting with Corporate customers.
by stale_pancake October 30, 2009 2:36 PM PDT
Absolutely. In fact this can sometimes even result in a lawsuit if the vendor feels something isn't right with the deal. This is public money after all. It's a not a private client.
by davequick October 30, 2009 1:45 PM PDT
You didn't hear about it until this?

You should, I dunno, real cnet or something: http://news.cnet.com/8301-27080_3-10384433-245.html is just the most recent article about the plans for Los Angeles to move from Novell to Google...and that was days ago, which is an age in Internet time...
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by ianrbruce October 30, 2009 2:10 PM PDT
Hi Matt.

As others have made clear, there's been a lot of coverage on the LA decision. We felt we had to correct some of the erroneous comments that have been made.

We specifically needed to address the security and cost issues. We do not feel anyone is a fool, but we do think there's been a lot of misinformation. We're not alone thinking this - as we stated in the post, these issues were raised by the LA Police Department, the City Administrative Officer, and others.

Ian Bruce/Novell.
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by OuchMyEye October 30, 2009 11:09 PM PDT
People always resist change and implementation costs always drive up first-year costs. My guess is that a lot of the decision was weighted towards betting on a winning horse (Google) VS betting on a dead horse (Novell). Harsh words for the arrogant folk at Novell.
by Renegade Knight October 30, 2009 2:12 PM PDT
It's part of the trend. "We think the judge was smoking crack for ruling against us and ruling against, freedom, liberty, justice and the american way, but we will honor the decision until the appeal" has been the corporate mantra for some time when it comes to legal decisions.
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by protagonistic October 30, 2009 2:23 PM PDT
How the mighty have fallen. Some years back they were in a position to challenge Microsoft. Now they are no more than a lackey waiting to do Microsoft's bidding.
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by Random_Walk October 30, 2009 2:23 PM PDT
*sigh* - the urge to call it "GroupStupid" is way the hell too strong today (note that I say it with the same half-affectionate tone as any other admin who has had to wrestle with that thing).

But, I digress.

Anyrate, to Ian: Seriously, dude. Get a grip. You lost one. No big deal.
Reply to this comment
by alegr October 30, 2009 3:18 PM PDT
Never having used GroupWise/Unwise, I'm still very amused by Matt's suggestion that someone could ever somehow fall for Notes. Then, again, public bidding can bring inexplicable results...
by b00dah October 30, 2009 2:38 PM PDT
It will be interesting to see how the quality of service the city of LA is receiving is perceived after, say, the first year. For Google's sake, I hope they have their act together (i.e. cloud security etc).. On the other hand, we're on the verge of witnessing yet another example of their industry dominance.
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by Dalkorian October 30, 2009 3:07 PM PDT
"In fact, the only companies that benefit from this kind of customer abuse are IBM and Microsoft..."

Why am I hearing the Imperial March in my head?
;-)
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by Marauder62 October 30, 2009 3:08 PM PDT
I agree with some of the other folks at CNet who have congratulated Google but also fear for them. The thrill and well earned exuberance needs to be tempered with the knowledge that this could make of break them in this arena.

State and Local governments can be incredibly difficult to work for, especially if some of the players are powerful and unwilling to abide by the contract. Do not kid yourself into thinking they will not look for ways to make life difficult for Google with an ultimate goal of causing the contract to be rescinded. Unfortunatley, petty politics too often trumps techical excellence.

I wish Google good luck.
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by October 30, 2009 3:50 PM PDT
Hey, ah, Matt, suggest you try reading the coverage a this place called, ah, cnet.

So you worked at Novell? Given the chip on your shoulder, I'd guess things didn't work
out for you there.
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by techguy51 October 30, 2009 10:15 PM PDT
Sorry, I don't see how you can construe Matt's comments as a chip on his shoulder about Novell. He said it was NOT characteristic of the Novell he knew and worked for. Read the damned article again.

Novell has always had strong products, and the ****-poorest marketing in the tech industry. They went from about 90% of the network OS market to the 5 or 10% they now have. Microsoft, with inferior products (I mean specifically NT Server 3.51 and 4.0) but with truly great marketing, took much of that market away from Novell. The rest they lost to Linux. Netware was never impervious to attacks, but it had a much smaller attack surface than other network OSes. Novell has made a 15-year series of business and marketing blunders.

I'm transitioning away from Novell, after 21 years of using Netware. Not because I want to, but because Novell no longer gives me any reason to remain their customer. In fact, a year ago as my School License Agreement expired, I could not get a sales rep to call me back to arrange renewal. This kind of disregard for customers is more damaging than the public attacks on Los Angelos.
by kennonk October 30, 2009 11:12 PM PDT
I am curious as to what is going to happen the first time Google drops the ball on a legal information hold/discovery and the city of LA is fined a million or more for it. I work in a GroupWIse shop and although I would rather die than switch to Exchange I would love to put the whole damn thing into the Google cloud and be done with it. I am just not confident yet about their data retention abilities. e-Discovery is the bane of our GroupWise admin's existence.
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by October 30, 2009 11:43 PM PDT
One more Asay-screed, (anyother kind?) already covered in depth by others. Assay whose incompetence is covered by bluster, some dislocated anger of some relationship with Novell that didn't work, and who, under the cnet banner, inflicts us with his out of date, junk. I'd suggest he needs the discipline of (real) journalism, plus some classes in anger managtment. Where are the editors of cnet that inflict Asay-sprew and venim without adult supervisions (aks aditors). THIS IS SMAM UNDER CNET'S BRNK
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by dhnicoll November 2, 2009 1:27 AM PST
You ask in the article "Who at Novell could have possibly thought this was a good idea? " and state "This is no way to treat customers".

Well I'll tell you one set of people that thought this was a good idea - existing GroupWIse customers.

Far from not being a way to treat customers, many of us are very pleased that Novell have stood up to some of the ludicrously misinformed statements that have been made about the City of Los Angelese GroupWise system and the unquestioning rep[eating of these statements by lazy IT journalists that can't be bothered doing any proper research on a story.

If anything Novell's posting was very restrained given some of the things which have been said, but it is good to see them stand up for themselves for once.
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by pentest November 2, 2009 7:25 AM PST
Novell is right.

Foolish doesn't even begin to describe the organization that uses any Google apps.
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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