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

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To: Jim McCormack who wrote (21400)3/24/1998 11:57:00 PM
From: DJBEINO  Read Replies (1) of 42771
 
Novell frees up NetWare APIs (from computerworld)
Laura DiDio

Novell, Inc.'s new corporate strategy, unveiled yesterday at its Brainshare '98 conference in Salt Lake City, is a clear departure from previous years. The effort includes a push to deliver products on time and make its core NetWare application programming interfaces (API) available free to its developers. The company also will aim for closer cooperation with Microsoft Corp. to develop products that integrate NetWare and Windows NT environments.

The more than 5,000 people attending Brainshare overwhelmingly cheered the moves. And although you might expect that sort of enthusiastic response from users -- they are, after all, some of Novell's most stalwart and loyal customers -- analysts also reacted positively.

Industry watchers haven't been shy about criticizing Novell and its ongoing problems during the past three years. But they said they have been impressed by Schmidt and his management team's ability to realign and refocus the company as they also make tough decisions to get Novell back on track -- including eliminating 1,000 jobs and slashing costs. At yesterday's keynote speech, Novell's strategy and its determination to execute that strategy and deliver products was readily evident for the first time in a long while.

Schmidt was relaxed and confident as he ticked off the company's accomplishments on the eve of his first anniversary as CEO and chairman. "There's a new face of networking and it's a human face. To serve our customers' needs, we've realigned our business model, focused our management, and since last Sept. 1, we've introduced a new product every month," Schmidt said.

"In 1998, we expect to ship more products than ever before," he said. "And we're on the right path, with the right product mix that includes NetWare 5, BorderManager, NDS for NT, ManageWise, GroupWise and ZENWorks."

Referring to the erosion in NetWare's installed base at the hands of Windows NT, Schmidt and Chris Stone, Novell's vice president of corporate strategy, noted that NetWare still commands the lion's share of the installed base of network operating system users, with 3.8 million servers and 79 million nodes installed. They said Novell will fight to keep those customers by offering developers NetWare components for free.

The freebies include NetWare schema documentation for directory access; Novell Directory Services API; and NetWare dynamic link library and .exe code. This should help lure independent software vendors back into the NetWare fold by making it easier to build applications for the platform.

"I like what I heard. Novell is speaking with one voice, and they're getting their act together. In many areas, especially the directory services arena and clustering, Novell is light years ahead of Microsoft," said Patrick Corrigan, president of The Corrigan Group, Inc., a consulting firm in Tigard, Wash.

Jean Bozman, an analyst at International Data Corp. in Mountain View, Calif., said she was impressed by Schmidt's ability to grasp the issues and move quickly to refocus the company. "Schmidt clearly understands the meat and potatoes issues that are of most concern to NetWare users. ... All of the new product moves and strategies illustrate just how connected he is to the issues.

"He's working hard to get Novell's house in order and doing a good job so far," Bozman added.

Yesterday's speeches and sessions were jam packed. As a matter of fact, so many people crowded in to hear the keynote speech in a ballroom that holds 3,000 that fire marshals came to clear the hall. Schmidt and his management team of Glenn Ricart, chief technology officer, and Stone, were interrupted several times with applause. Likewise, many sessions -- especially those focused on NetWare integration with Windows NT and security -- were packed. Demand for many topics was so high that Novell had to repeat sessions up to three times to accommodate everyone.
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