The CRN interview -- Novell Consulting Takes Partnership Approach
Richard Nortz, senior vice president of customer services at Novell Inc., who also is acting director of Novell Consulting, spoke with CRN Section Editor Christina Torode about the direction of Novell Consulting, emerging opportunities for the group, and how the consulting arm is partnering with the channel.
CRN: What are you adding to Novell Directory Services (NDS)?
Richard Nortz: We are now taking the directory and integrating it into [enterprise resource planning] solutions such as PeopleSoft [Inc.], and in doing that, creating a custom piece of software along with a significant amount of consulting to help customers integrate ERP solutions into the network. We run our own [human resource] department with PeopleSoft software, for example, and integrate it into our network in such a way that when an employee joins the company, all the information put into the HR systems automatically populates the directory. We are in the process of creating software to do this with SAP [AG] next and then move down through other ERP solutions.
CRN: Novell announced a number of partnerships at BrainShare '99. Can we expect to see new consulting practices formed around these vendor partnerships?
Nortz: Cabletron [Systems Inc.], Lucent [Technologies Inc.] and IBM [Corp.] are a few companies we are working with. We are going to be building practices around their products, like the Lucent switch, for example. When we directory-enable the Lucent switch, a user can call the central administrator for more bandwidth to run videoconferencing from their desktop, and after they are done with the teleconference, the administrator can then shrink that added bandwidth back down. We are starting similar practices with Cisco [Systems Inc.] routers and other practices with IBM and Novell products.
CRN: How does Novell Consulting rely on VARs to deliver NDS?
Nortz: We do a lot of work with both channel and consulting partners like our [Enterprise Consulting Partners]. We are finding it helps [partners] when they bring Novell in side-by-side because they get more power and thrust into some accounts. PriceWaterhouse-[coopers] is actually in discussion with us to add our directory services to their security expertise. A significant number of large players and a number of channel partners are looking to add our directory services to their offerings.
CRN: How many more consultants are you looking to add to Novell Consulting?
Nortz: We've gone from 60 people to close to 300 in the last five months. We were budgeted at 300, but we are already going past that. Everyone I have on board right now is already backlogged well into the future, so I'm going to keep hiring as long as we have a significant backlog.
CRN: Have your partners expressed concern about your growing internal capabilities?
Nortz: They have raised the question a couple of times, and we've had good discussions with them. The best example I could give them was, we began offering technical support contracts three years ago when we weren't in that business before and relied on partners pretty much to do that work. So partners were really concerned when we began offering premium-level service contracts to customers.
Today we do about $75 million in revenue in that area, and almost every one of our partners has grown right along with it. Novell entering the game in these areas actually is growing the pie and not taking a piece away from partners. This is actually very important because we don't want to compete head-to-head with them. I want to work side-by-side with them, and we're finding when they take us in where they had a $30,000 job, now it turns into a $100,000 job. Customers are willing to pay more because the vendor is in there with them.
CRN: What are some areas of opportunity for Novell Consulting and partners?
Nortz: We are doing a lot of [NetWare] upgrades . . . a lot of work with ZEN (Zero Effects Networks), one of the applications that rides on the directory. Another emerging opportunity is our Global Network Operating Center (GNOC), which is a center we designed and built using our software to manage our network around the world. These are multimillion-dollar engagements ranging from $3 million to upwards of $50 million per unit. Some partners are expressing interest in becoming a franchise that does network management for midsize companies. They want Novell to build a GNOC for them. We're in the process of doing a design front-end analysis for them of what it would cost and why they would want to do it. We expect to close a couple of those [deals] this year.
CRN: What are some PartnerNet programs?
Nortz: We will begin training 12,000 to 15,000 partners [this] quarter on Novell products across the board and on new product sets in particular, like the directory, NetWare 5, ZEN, GroupWise 5.5. Partners pay a fee to be a part of PartnerNet, which includes technical support and consulting. The cost of the training will be covered by marketing and sales costs.
Copyright ® 1999 CMP Media Inc.
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