Novell Changes Leadership
Tutorial Details:
Novell announced on Tuesday that the previous day its board of directors had promoted Ron Hovsepian, executive VP and president of global field operations, to president and chief operating officer of Novell.
Hovsepian will have direct worldwide responsibility for product development, marketing and field operations, which includes sales, consulting and technical services.
He also, along with former president and still the CEO and chairman of the board, Jack Messman, occupies the newly created "Office of the CEO."
Hovsepian is a relative newcomer to Novell Inc.
While there, he rose to worldwide general manager of IBM's distribution industries, managing global hardware and software development, sales, marketing and services.
His advancement didn't surprise Stacey Quandt, research director for the Aberdeen Group.
"Given his expertise in operations, it is no surprise that he would be promoted to the position of president and COO," said Quandt.
"Since joining Novell, I've remained convinced that we have a tremendous opportunity to provide leadership in the market as organizations around the globe embrace open standards and open source as a way to improve their operating results," said Hovsepian.
The stockholders, especially Blum Capital Partners LP, however, have become impatient with Novell's progress.
Blum, with the support of other stockholders, wants Novell to reduce costs, divest itself of non-core businesses; become a leader in Linux and identity management through joint ventures and selective acquisitions; and optimize its capital structure to maximize shareholder value by buying back stock.
Messman has resisted these moves even as Novell's profits dropped.
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