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

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To: DJBEINO who wrote (18253)10/30/1997 2:48:00 PM
From: vinod Khurana  Read Replies (1) of 42771
 
Novell's Schmidt bets on Java in its
battle against NT
Kristi Essick and Laura Didio
(Online News Story, 10/30/97)

Novell, Inc. CEO and Chairman Eric Schmidt, at a briefing in
London yesterday, said he is placing all bets on Java in Novell's
strategy to go up against Windows NT.

Schmidt, who was at Sun Microsystems, Inc. for 14 years before
he joined Novell in April, has made no secret of the fact that he
plans to structure Novell's offerings around complete Java
integration. The company last month unveiled a Java Virtual
Machine (JVM) add-on for its NetWare 4.x and IntranetWare
server operating systems. The company early next year will
release a new version of IntranetWare, code-named Moab, with
a fully integrated JVM.

Having a JVM integrated with IntranetWare will promote the
operating system as an application server environment, not just a
file- and print-sharing and directory services system, Schmidt
said. Any application written in pure Java will be able to run on
IntranetWare and NetWare 4.x, which will open up new
applications to Novell's platform, he said.

But another key aspect of Novell's strategy is to make Novell
Directory Services (NDS) available on other platforms besides
IntranetWare -- and here Java plays a role as well. Developers
can write network applications in Java that will take advantage of
NDS, Schmidt said.

Since Java runs on any platform, Novell will be able to take its
directory service to other operating systems, Schmidt said.
Novell also is making NDS available on Microsoft Corp.'s
Windows NT in the first half of 1998, Schmidt said. If users can
run NT, but also implement NDS instead of Microsoft's Active
Directory, that will fundamentally change Novell's strategy,
Schmidt said. Before, users had to have NetWare to have NDS,
but in the future they will be able to have NDS separately, he
said. By making Java the cornerstone of its strategy, Novell is
confident it can carve out a niche for its IntranetWare network
operating system, even though it is going head-to-head with NT.

"Java is incredibly important to the server," Schmidt said. Over
time, Java applications will replace current network services, such
as network management and messaging, he said. Novell's goal is
to make IntranetWare "a better Java platform than NT," he said.
Novell itself is rewriting many of its key network services in Java,
officials have said consistently over the past few months.

Over time, Java will become much more than a programming
language, Schmidt said, as Java applications will run on integrated
JVMs distributed throughout the network. That will allow
networks to become more intelligent, allowing certain applications
and services to take precedence over others so the overall
network will perform better, he said.

Schmidt also said yesterday that the struggling operating systems
company isn't depending on partners or alliances to expand its
business. He shrugged off rumors of a Novell takeover, which
have been circulating since this summer. Most of those rumors
have tapped IBM as a potential partner.

Schmidt said Novell isn't going to be acquired. "We are one of
the largest software companies in the work. Size does matter, but
with our other partners and resellers, we are a huge operation. I
do not see the need for big partners," Schmidt said. He did
acknowledge that Novell will seek out smaller partners to drive
its business.

Schmidt said Novell's fortunes are turning thanks to its
BorderManager suite of Internet services and NDS for Windows
NT. "We have high revenue goals for BorderManager, and we
are exceeding that," Schmidt said. He said his primary goal is to
focus on strategy, marketing and shipping the next generation of
products. Novell hasn't announced its year-end earnings yet.

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