Hello Salah,
As usual, I welcome you posts as they lend some very good perspective to things. While reading your posts, I was curious as to whether you had looked into a couple of areas:
>---------------------------
>>IntranetWare 5.0 (Moab) is going to be a much stronger product than
>>4.11.<
>
> Moab is basically a product for the enterprise, let's wear our rosy
> shades and assume that they will be able to grow their NOS sales by
> 15% yearly, this amounts to about 100M additional sales yearly
> (currently, NOS sales including IFSB is 600M-700M yearly), if one
> optimistically assumes these additional sales will add about 70M to
> the bottom line, this will increase the EPS by $.14/year if you
> factor in taxes. Nothing to be excited about.
Have you started to look into the potential market for BoderManager and our caching products? I'm thinking that with the press that has started to show up, maybe the market is starting to learn and better understand the need for these products. I'm curious about your perspective on whether the caching marketplace looks like the beginning of something that could more than replace the traditional NOS sales. Any ideas? Comments?
> ---------------------------
>>The low end is still a vacuum on two levels at Novell. I see them
>>still pushing IFSB.<
>
> Yes, Schmidt stated in several occasions that MSFT is dominant in
> this area and they will do something about it, but nothing is
> happening. In their Q4-97 announcement, they referred to enterprise
> only, not a single word about SB:
>
> *************************
> From the 4th para of Q4-97 announcement:
>
> Novell's core business -- supplying software for very large
> networks -- was its strongest ever.
> *************************
>
> From this statement, I gathered they gave up on SB, I thought their
> core business is -- supplying networking software and related
> services for businesses -- large and small. The growth rate for the
> enterprise probably is in the 10%-15% range, and for SB is in the
> 40%-60% range. If they are going to prosper, they need to do
> something about the low end QUICKLY.
>
> ---------------------------
On the Small Business side of things, I still believe that we have a good opportunity to sell into these same accounts. I don't believe that it's all or nothing ... there are many ways in which our products are continuing to "compliment" the Microsoft sale ... to make their products work. I also believe that the caching technology leads us into sales into ISPs ... and that ISPs are a more natural fit for outsourcing to small businesses, and a way into small businesses. We already know that the small business will be buying Windows for the desktops ... I believe that Novell's power will be in providing additional software and services into this market ... not instead of. Your perspective?
Scott C. Lemon |
