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

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To: Jack L. Dlugach who wrote (3496)9/12/1996 8:01:00 PM
From: Eddie Kim   of 42771
 
Posted at 4:22 PM PT, Sep 12, 1996
NEW YORK -- Novell Inc. unveiled the latest version of its GroupWise messaging and
groupware software here Thursday, pitching it as document management for the masses.

GroupWise 5.0 features tight integration with Novell Directory Services, improved
Internet access to messaging functions, and a Universal Mail Box that gives users access
to electronic mail and other messages, calendaring and scheduling, task management, and
shared folders. Document management is an extension of GroupWise's e-mail foldering
system, making it as easy to use as e-mail, officials said.

"We're really trying to be a product that solves your solution ... ready to go, out of the
box," said Stewart Nelson, vice president and general manager of Novell's groupware
division, during the launch Thursday.

Novell officials also downplayed any impact CEO Robert Frankberg's resignation last
month would have on sales of GroupWise, which has seven million users. Contrary to
recent speculation, Novell is not in any acquisition discussions, officials said.

"Of course, that [resignation] raises a degree of uncertainty," said Vic Langford, senior
vice president at Novell. "We haven't found a slowdown in our products at all as a
result."

Novell's Nelson maintained that according to International Data Corp. research,
GroupWise is already number one in the groupware market and number three in
messaging and has what it takes to take on its competitors, Lotus Development Corp.'s
Notes and Microsoft Corp.'s Exchange. GroupWise's support of multiple client
platforms will give it an edge over the Windows-only Exchange, he said.

And GroupWise's messaging-based structure is easier to use out of the box than the
Notes database environment, which must have applications written on top of it, he
claimed. Unlike Notes, which stores entire documents in its database, GroupWise stores
document references that point to documents created in outside applications, such as
spreadsheets or word processors, he said.

Even so, GroupWise 5.0 has arrived a bit late to the groupware update party, posing a
challenge for Novell, said Mark Levitt, senior research analyst for electronic messaging at
International Data Corp., based in Framingham, Mass. Notes 4.0 and the inaugural
version of Exchange have been on the market for months. Still, Novell's new document
management features can help them win converts, he said.

"They [Novell] really need to push hard the message that GroupWise 5 has
out-of-the-box functionality that is not in the other products," Levitt said. "Time will
tell."

Pricing, identical to that for GroupWise 4.1, ranges from $718 for a 5-user license to
$32,625 for a 250-user license, officials said. Windows 95, Windows NT, and
Windows 3.1 clients will ship with the October release, with Macintosh and UNIX motif
clients to follow within 90 days, officials said. WebAccess, the product that enables
GroupWise users to access e-mail, calendars, and other GroupWise functions via the
World Wide Web, will also ship in October.

GroupWise servers will run on NetWare 3, NetWare 4, and Windows NT initially, with
a Unix version to follow within 90 days, officials said. Since GroupWise uses Novell
Directory Services and NetWare Administrator, IS shops that don't currently use
NetWare will need to run one NetWare server to administer GroupWise, officials said;
Novell ships a NetWare run-time free with non-NetWare versions of the server.

GroupWise's debut was accompanied by a flurry of supporting announcements from
third-party vendors, who offered imaging, real-time whiteboarding, faxing, voice-mail
management, and other applications.

Following are some of the third-party GroupWise products and services announced
Thursday:

BDM International Inc., a Novell Enterprise Consulting Partner, will help users
migrate to GroupWise 5 or roll out the product for the first time. BDM, based in McLean,
Va., is at bdm.com.

Cheyenne Software Inc. announced an upgrade to its FAXserve network fax software
product for NetWare and GroupWise 5, which enables faxes to be sent like e-mail
messages. Cheyenne, based in Roslyn Heights, N.Y., is at cheyenne.com.

Fujitsu Ltd. announced it will customize GroupWise 5 for its major Japanese
customers, and will bundle it with its FM and Web servers, which are Intel-based.
Fujitsu, based in Tokyo, is at fujitsu.com.

Information Builders Inc. announced it will integrate its FOCUS Six reporting
application with GroupWise 5, so that it will appear as part of the Universal Mailbox.
Information Builders, based in New York, is at ibi.com.

Puma Technology Inc. announced that its IntelliSync data-synchronization software
will support GroupWise 5, so that calendaring and other information can be transferred
from GroupWise to a PDA. Puma, in San Jose, Calif., is at pumatech.com.

Quarterdeck Corp. announced that RemoteMeeting Lite, its whiteboarding package,
will be integrated with GroupWise 5. Users will be able to launch RemoteMeeting from
the GroupWise toolbar, and will be able to find user addresses from the GroupWise
address book. Quarterdeck, based in Marina del Rey, Calif., is at
quarterdeck.com.

WhetStone Technologies Inc. announced that its forthcoming ViewWise 7 Production
Imaging Software will be integrated with GroupWise 5. WhetStone is in Park City,
Utah.

Novell, based in Orem, Utah, can be reached at (801) 429-7000 or at
novell.com.
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