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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: BP Ritchie who wrote (9812)3/22/1997 12:01:00 PM
From: FundAce   of 42771
 
BP,

I agree with you, if we can get Oracle and Netscape on Novell's platform, this will be a good base. Note, "a good base" is the first leg, NOVELL, and it's partners will still need to define how they will increase market share relative to Microsoft. What obstacles remain in their path? This will have to be defined.

Second, what "qualitative" improvements may be necessary to distinguish NOVEL platforms....if Partnerships like Netscape (ie, NOVENYX), and Oracle Database can spur new distinguishing features relative to Microsoft NT servers...then this is good. Key here is NOVELL will have to maintain movement...never stand still.

R&D......in addition to partners, NOVELL has got to use its positive cash to increase the movement on R&D to simplify NOVELL platform use. This should also be done industry specific. Auto, Publishing, you name it, each has a need all its own...........NOVELL should build customer partnerships in key industries to increase the rate of penetration into each market segment. Cutting deals with Netscape and Oracle is sufficient, but not enough. These deals are great for now, and perhaps the next year, but more will need to be accomplished in "creating" new products - off the NOVELL platform - to increase "loyalty" to NOVELL.

Schmidt is a great start - again, he needs to send a clear message to his troops and to the market - What is Novell? Who will value NOVELL platforms? How can networks benefit from NOVEL/Netscape/Oracle....relative to Microsoft??? This needs to be translated into clear messages to the market place.......word of mouth, ad campaigns, direct mail.......and most importantly, target major clients in each industry to build support - buy the market, create value added, and Microsoft will finally be on the defensive. Fortunately, even if Microsoft is reading this, they must the know the real meaning, otherwise all this is worthless.

Everything I'm pointing to above has worked in my market. If have penetrated a major market dominated by one player for years......using the above methodology above. I could do it for NOVELL, but let's see how this transition comes along. I'll watch for six months, if I don't see Novell doing the right things, then guess what, I'm flying out to see Schmidt - one on one- until they get it right. Novell's a great company, but how its translates its great assets into increased market share, customer loyalty, and fostering its organization as a center for change, rather then catch up, will be the ultimate test.

Time will tell......

Fundace
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