They're positioning on-demand as a niche offer. That's smart. If I was SAP, the last thing I'd do is validate on-demand as the biggest trend in the software industry. They'd be crazy to do that.

One of the best things is being able to share this with them. Space travel could offer a new niche for students in physical therapy and rehab work. It?s a huge need for NASA, and it will be great to expose them to that.

Novell has the necessary resources to be a much more profitable enterprise but it currently lacks the vision, strategy and execution to produce respectable returns.

Red Hat is one of the best-positioned stocks in software and should be able to further capitalize on the growing demand for open source.

Our price objective is based on a 40 times PE (price/earnings) applied to our new 2005 earnings per share estimate of $1.35.

If they don't make bold moves in the next 12 months, they'll move into irrelevance.