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

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To: vinod Khurana who wrote (10299)3/27/1997 11:36:00 AM
From: vinod Khurana   of 42771
 
New users choose NT over Netware, IDC says

MS overtaking Novell

New users choose NT over Netware, IDC says

By Marc Ferranti
IDG News Service

New York - Netware still has a commanding lead
among network operating systems, but Windows NT
is winning over new users, according to a new study
by International Data Corp.

Microsoft Corp.'s NT Server sold more than twice as
many new licenses last year as NetWare 4.X. In
addition, unit sales of NT's new licenses grew by 85%
in 1996, IDC found. The revenue breakdown was
unavailable.

But Novell still has the lead, taking into account
upgrades to existing customers. Novell recorded 37%
of license sales last year, down from 41% in 1995.
NT's share rose from 17% in 1995 and 27% to 1996.

IDC bases its numbers mainly on reports from
vendors, though it cross-checks the vendor figures
against surveys of users, IDC officials said. Both
Novell and Microsoft are major customers of IDC's
market research reports and services, IDC officials
said.

In a press release issued Monday, Microsoft quoted a
subset of the IDC figures, mentioning sales to new
users but leaving out the figures regarding upgrades to
existing customers.

Novell countered today with its own press release,
also citing IDC figures. However, Novell cited figures
relating to total sales of NetWare licenses, including
upgrades.

But IDC analysts said the trend toward Microsoft is
undeniable.

"It is probably inevitable that they [Micrososft] will
take the leadership in terms of absolute market share,"
Lee Doyle, vice president at IDC in Framingham,
Mass.

But if Novell continues to ship good products, it can
probably retain most of its customer base, Doyle said.
He added that Novell needs to be a significant player
in the Internet.

"They have some good products but not the visibility,
even though they have the most widely deployed
directory of anyone out there," he said.

V.K
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