Novell (NOVL) dirt cheap, good buy? Message Board

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

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To: Spartex who wrote (22918)	6/26/1998 11:31:00 AM
From: Paul Fiondella	Read Replies (2) of 42771

Substance of your post --- that NT isn't enterprise ready Everything in your post was discussed long ago here. In fact we begged Novell to ram a PR campaign down MSFT's throat concerning the weaknesses of NT in the enterprise more than a year ago. However you have to understand that everything said about Netware's strengths in the enterprise is preaching to the choir when it comes to actual sales. The first thing Schmidt did when he was hired was get on his jet and run around to all the big customers to try to get them on board for Netware 5. One bet on NOVL has it that they will get their customers to upgrade big-time to Netware 5.0. Somebody can do the numbers. I call this the 40% solution. If you take everything out of Novell's customer base that is at the small server end of the equation and leave only the enterprise you get a much smaller company. This smaller company (which doesn't exist yet in terms of cost control) has to have something to sell to prevent itself from eventually being squeezed out of the enterprise by NT at the low end and UNIX at the high end. Take a look at IBM and you see precisely what I mean. Their marketing strategy doesn't have a place for Novell. That should tell you a lot. I have always said that Novell will be a buy-out candidate once Netware 5.0 is proved to be stable and effective. I can't see Novell regaining its former profitability without some hot products producing revenue. The last quarter did not show that happening. As to Schmidt's deal with MSFT: Did he really get a committment for MSFT to "go with" NDS on NT with no Netware or is Gates just stringing him along until he announces an EARLIER RELEASE of NT5? Good luck to the longs.

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