Novell CEO Messman ousted by board

Novell's board of directors has ousted Chairman and CEO Jack Messman and CFO Joseph Tibbetts in a move to accelerate growth at the company, Novell announced Thursday.

Ron Hovsepian, Novell's president and COO, was made CEO in addition to his existing duties. Dana Russell, Novell's vice president of finance, becomes interim CFO.

The changes are effective immediately. Messman, 66, will remain on Novell's board until the end of October, the company said. Hovsepian, 45, was also made a Novell board member.

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Novell's board of directors has ousted Chairman and CEO Jack Messman and CFO Joseph Tibbetts in a move to accelerate growth at the company, Novell announced Thursday.

Ron Hovsepian, Novell's president and COO, was made CEO in addition to his existing duties. Dana Russell, Novell's vice president of finance, becomes interim CFO.

The changes are effective immediately. Messman, 66, will remain on Novell's board until the end of October, the company said. Hovsepian, 45, was also made a Novell board member.

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The board concluded that the management changes would be "the best way to accelerate the execution of our growth strategy and build value for shareholders," Novell said.

In a conference call Thursday, the company shed no further light on Messman's or Tibbett's departure. Thomas Plaskett, a Novell director who takes Messman's job as chairman, said only that the company is "genuinely appreciative" of their contributions. The departing executives offered no comments in Novell's press statement.

Messman became Novell chairman and chief executive when it acquired his former company in 2001.

Novell's NetWare, once the dominant network operating system, has seen its lead erased by Microsoft Windows. Under Messman's leadership, Novell set out on a new strategy several years ago to build a business based on the open source Linux operating system, acquiring German vendor SuSE Linux in 2003.

It has failed to make big inroads against Linux market leader Red Hat, however. Cost-cutting efforts helped Novell turn a profit of $3.1 million in its most recent financial quarter, from a loss of $15.7 million a year earlier. But revenue for the period declined, to $278 million from $297 million.

The company will continue to focus on its existing product strategy, notably Linux and Netware, identity management, data center management and security products, Hovsepian said. "As CEO my top priority is to accelerate the speed and urgency behind our transition to Linux-based products," he said on the conference call.

That acceleration may include "nonorganic growth," he said, meaning acquisitions. The company will also try to fix weak areas, by increasing the amount of maintenance revenue it generates from customers, for example. "Over 50,000 customers worldwide are our customers. That said, we still have a lot of work to do," Hovsepian said.

He'll also try to simplify Novell's business, possibly by reducing the number of pricing options that it offers.

Hovsepian has risen quickly through Novell's ranks, passing his three-year anniversary last month. Formerly with IBM for 17 years, he joined Novell as president of its North American operations and became president and COO last May. He has "the right experience, expertise and energy" Plaskett said.

The top management changes were not spurred by any "accounting issues or other improprieties," he said. "Given today's environment it;s important to assure you the boards' decision was based purely on evaluation of who's best suited to lead the company going forward," Plaskett said.

The IDG News Service is a Network World affiliate.