The rebirth of Novell
CEO Eric Schmidt and a timely directory strategy will propel the company back to prominence.
February 9, 1999
Web posted at: 7:41 p.m. EST (0041 GMT)
by Susan Breidenbach
(IDG) -- Directory-enabled networking will define computing in the 21st century, and Novell has once again staked out a position in the forefront of a major technology movement. This time, the company appears poised to seize the day instead of giving ground.
Novell CEO Eric Schmidt
Novell Directory Services (NDS) has been evolving for 10 years into a mature, robust cross-platform system that many argue is the only enterprise-capable directory game in town. It is certainly the only global directory that boasts an installed base closing in on 50 million seats.
But the history of technology is littered with the corpses of great products that lost out to inferior ones. Companies often fail to get the word out to the right people, can't garner enough third-party backing, or have trouble convincing potential customers that they will be around to provide support and upgrades.
Novell stumbled badly earlier in the decade, blowing a near-monopoly of the LAN server market with an ill-conceived attempt to challenge Microsoft on the desktop. This two-front war alienated independent software vendors (ISV), confused users and diverted resources and attention away from Novell's core network-services business.
The fast-moving world of high tech is usually unforgiving of such missteps. However, the growing need for an industrial-strength enterprise directory is providing Novell with a second chance, and the company is taking full advantage. After losing money in 1997, Novell shifted its focus to NDS and directory-enabled applications, and has now posted five strong quarters in a row. All indications are that the reborn, refocused Novell will make a go of its directory strategy, provided it has learned from the mistakes of its past.
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