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

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To: Paul Fiondella who wrote (14013)6/25/1997 12:36:00 AM
From: Scott C. Lemon   of 42771
 
Hello Paul!

Just got into Rochester for some meetings ... I figured I would catch-up after last night. I knew that I would hear from you. I have to say that you provide a great deal of perspective that I appreciate. A couple of things come to mind though.

1. I'm not sure if you intend to insult, or think that your attacks will somehow change things ... but they don't and won't. If it makes you feel better, please continue ... I enjoy your writing style and have learned much from you.

2. I do not write any of these posts, nor type anything, that I don't believe. I am not posting rosy world to make anyone here feel good. I am honestly voicing my opinion as a shareholder and employee.

3. With the little bit of legal background that I have, I don't know that I would disagree with any of the quotes that you attributed to me in the later posting. Please make sure that you read the exact quote and do not try to interpret anything into them. (Oh yeah ... the "new" management was Denice Gibson, who is still around. I did not consider Joe "new". And my statement stands about Joe and John Young. Although I have read many accusations, and might have some of my own thoughts, I was taught not to assume ...

4. If Novell is just going to die, and you really seem to think there is no way out, then please resign. Quit. Sell. Leave. I'm in the middle of a very interesting and difficult game of how to make this company successful. I'm busy running around the country, working my butt off to try and see how I can contribute to our efforts to succeed ... this seems to be the opposite of what you seem to preach. If we're done, then I can't figure out why you stick around.

Now as for your post (I'm sorry ... long wind coming ...)

>Mr. Corporate feelgood

Yes, I love this industry. Since joining it in 1981 it has been a wild ride!

> Well Scott you get the prize. I don't think there is a Novell CEO
> that you couldn't suck up to or a Novell strategy that you couldn't
> find some merit in.

Uh ... please talk to some people here at Novell. You would find that I "suck up" to no person. I call'em like I see'em. Screw'em if they can't take it.

> Tell me Scott what is the revenue stream for the next two Quarters
> for Borderware products? Will it replace the revenue stream that
> you had and now have completely lost for your 3.x products?

I'm sorry, I will admit that I do not have the exact numbers here in front of me, nor do I think it would be my job to discuss projected revenues on this list. However, I do know that I can't get enough CD-ROMs of the BorderManager ... I know that customers are installing this stuff everywhere I go ... I know that in my computer science research there is no other technology solution that will provide the capabilities and solutions.

> You know the bottom end of your product line where the hole is as
> big as the hole in the ozone layer over the North Pole. If you've
> fogotten where it is, its where you used to be a few years ago
> dominating the network operating systems used on Intel platforms.
> Just to remind you incase you forgot.

Yes. I know that you would bring this up. We've discussed this before. I've tried to explain to you that the whole computer industry is changing in ways that we can't control. The "small business" model is going through massive changes as the Internet comes into play. Software "renting" and ISP provided solutions are right around the corner. Focus on this segment is more of a tactical solution ... not strategic ... since all small business software solutions are going to be effected by the evolution of Internet provided applications and services. These are my beliefs and understanding of the industry. I'm sorry if this is not clear to you.

We need to focus on a higher-level abstraction of what we thought we were providing out customers. The network is becoming the platform.

> Incidently you said your customers don't want you to compete
> anymore with NT. Well guess what Scott you don't compete anymore
> with NT. (Scott reminds me of those people that said we won the
> war in Vietnam). Thousands of Novell employees that are leaving
> this month. Not you though Scott.

Yes. Some of the OEMs that I have talked with have expressed that the press and end-users are so caught up in the NT momentum that they don't want to bad-mouth Microsoft ... even when they deserve it. Are you saying that we should expend more money and energy fighting this battle? I don't understand the logic ... especially when the whole model is evolving so rapidly ... I thought we should be planning strategically ...

> But then again it must have been their fault. Pat yourself on the
> back Scott. Why don't you go celebrate this great managerial
> triumph with Joe Marengi.

Is that your way of dealing with issues? Indicate fault? I will say that there were many people who have been let go that did not seem to embrace their job with passion. I will say that I was amazed upon returning to Novell how many people were not on top of the technologies and developments around us. And when those people became obstructions to getting things done I hoped they would leave. Many have. I would actually hope that you saw this as a positive. But no, of course not Paul ... damned if we do ... damned if we don't. Keep the wrong people ... let go the wrong people. Paul knows best ...

Oh, I don't really know Joe Marengi that well ... and I really don't know if he is celebrating or not.

> In case you don't believe me Scott (and your pompous ass never has
> heard anything that was said here), here is what the CEO of Tandem
> said today. Incidentally he doesn't share your pitiful fig leaf
> attempt at good news with regard to NT scaling up to the
> enterprise. You see Tandem got 50 million dollars from MSFT to make
> NT scaleable and it works so well that CPQ just paid more than 3
> billion for it. Gosh what a failure Enterprise Nt must be huh.

I'm not sure if you can read either. I don't recall saying anything that you allude to above. I simply stated that the Scalability Day demo by Tandem was not Wolf Pack code. It's a Tandem development. You see, if you really want to learn about this, Tandem and DEC know what real Clustering is. I have a great deal of respect for their technology. And I complemented the aquisition.

> Here is what he said today Scott---
>
> "The low end and mid range UNIX systems will be flattened by
> Enterprise NT. We are ready to say to HP and Sun's customers that
> Enterprise NT is the way to go."

Sounds like a good marketing quote to me. Good positioning, indicate the targets, partner with a strong partner. Was this Roel, the former Novell exec?

> You hear that Scott. Novell is considered the used to be in the
> Intel world. No one even bothers to mention Novell. Pope William is
> now after converting the UNIX mid-range.

Yeah ... and your point? Again ... is it over? Has the diet-challenged lady sung? I'm not sure what you are trying to prove. Are you trying to say that destiny is set and there is *NO* way it will change? The playing field is fixed?

> Its good to see you know your brown nosing place Scott pushing the
> old we don't compete with NT line. As I recall you were the guy
> running NT on your desk right? Well you don't have to worry
> Scott, none of your customers will be impolite enough to tell you
> they chucked all of their Novell systems for NT. They'll just say
> its good that you can give them a product that doesn't go head to
> head with MSFT anymore.

Well ... you're ranting now. I'm not sure what the actual intent of this was. Head to head in what markets? Small business? Desktop OS? I'm afraid you've fallen behind the times and don't seem to see the future of network computing and business.

> And you Scott will be happy, because you are the perfect Novell
> survivor. The last car in the parking lot so to speak with a shit
> eating grin on your face.

Perfect survivor? I asked to be let go! I'd love the severance ... and I don't need the job. But I *AM* glad that I'm still here. And I *DO* enjoy the fight. And this *IS* a winnable game. And the world *IS* changing in a way that we can capitalize on it.

So ... I'll be around for a while. ;-)

Scott C. Lemon
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