Steve, thanks for reply. Yep, only time will tell where NOVL is really going longterm. Regards, QuadK
From the Investor's Business Daily June 10 issue care of someone out there in cyberworld. Relates, to Craig Dean's earlier SI post on Novell's potential for earnings in the small business sector.
Two-Party System Rules SOHO Software Market
By Lisa Wirthman
For small businesses looking to streamline office computing and establish a presence on the Internet,
networking software may be just what the doctor ordered.
Novell Inc.'s NetWare and Microsoft Corp.'s Windows NT are the two main products trying to get down to
size to meet small-business needs - and they are winning the market over.
Until recently, network software has been too costly and complex for most small businesses. But in the last 16
months, Novell and Microsoft have shipped new scaled-down versions for small companies: Novell's
NetWare for Small Business and Microsoft's BackOffice Small Business Server.
''The beauty is that you can get most of the functions of a larger operating system at a fraction of the cost, and
have more extended business opportunities,'' said Todd Chipman, an analyst with Cambridge, Mass.-based
Giga Information Group.
Although on the market little more than a year, Novell's and Microsoft's small- business systems now are
used in 32% of all companies with 100 employees or less running networks, says International Data Corp. of
Framingham, Mass. Novell holds 22% of the installed base and Microsoft has 10%, IDC says.
Network operating systems are designed to link office computers together and connect them to the Web. A
desktop operating system like Windows controls only one computer. Network operating systems are used in
addition to desktop software and can connect different types of computers.
The number of businesses with networks today - about 1.6 million - is expected to triple by the year 2000,
says Rick Blass, marketing manager for Novell's NetWare. Businesses with 100 or fewer employees account
for 90% of all companies worldwide, he says.
They also form the fastest- growing segment of the market for networking software, says Betsy Johnson,
head of Microsoft's small-business division.
Novell's NetWare was released in February '97, but a new, overhauled version was shipped in April.
Microsoft's BackOffice is the company's first small-business product and has been shipping since November.
Both companies' systems come bundled with other software for sending electronic mail, faxing and hosting
Web pages. They also include software for connecting to the Internet, remote users or database servers that
can be used to run business applications such as accounting programs.
Both products connect all the computers in an office, so that employees can share files, e-mail and data
internally, and access devices such as printers, scanners and fax machines. Employees who are traveling or
working at home also can connect to a network to access files and exchange messages.
They also enable small businesses to connect to the Internet. Companies can e-mail partners and customers via
the Internet and host Web pages to provide information about their goods and services. Future versions of
small-business networking products are likely to support electronic commerce.
The Internet is gaining a reputation as a conduit for businesses to open up to the outside world, says Giga's
Chipman.
''Even mom-and-pop types of stores are starting to look at the benefits of a network . . . and set up Web
sites,'' Chipman said. ''It's the best way for them to advertise.''
While Microsoft's and Novell's products offer many similar features, there are some differences. Microsoft's
system is likely to work with a larger number of programs, Chipman says. Novell's system keeps a lid on
extras and costs less.
Microsoft's BackOffice can be set up in as little as three hours, Johnson says, but the company recommends
that users install the product with the help of a reseller or integrator.
Novell's NetWare for Small Business can be up and running in an hour, the company says. Depending on a
person's technical skill and the size of the network, it could be installed without outside help.
But Chipman says both companies' estimates are optimistic. The average installation time for setting up a
network operating system for 25 users is between four and six hours, he says.
Other costs to consider, he adds, are any PC upgrades that will be needed in order to run the new software and
any additional hardware required to set up a network - such as interface cards and cabling.
Even with this more realistic picture in mind, network operating systems can still pay for themselves in a
matter of months, Chipman says.
The bottom line, says Microsoft's Johnson, is that the biggest obstacle for small businesses to overcome is
their own fear of how complex it all seems.
''People still need to understand what business value they get out of a network,'' Johnson said. ''You may
not use every single function on day one, but you can grow into and explore all the features over time.''
''If you look back, businesses were also afraid to get PCs when they had typewriters,'' said Novell's Blass.
''That's the same point we're at with networks today.''
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Copyright (c) 1998 Investors Business Daily, All rights reserved.
Investor's Business Daily - Computers & Technology (06/10/98)
Transmitted: 06/10/98 23:55 (p0aa5yhi) |
