To: ToySoldier who wrote (27690 ) 8/12/1999 11:21:00 PM From: Rusty Johnson Read Replies (1) | Respond to
Briefing.com on the AOL deal ... America Online (AOL) 93 7/8 +1 1/2: An interesting development with Novell (NOVL) 24 7/16 +1/2, today. AOL will port the AIM instant messaging software to the Novell Directory Services platform. Right on the heels of Microsoft (MSFT) 83 11/16 -1/2, jumping into the instant messaging space with their own IP based system that tapped (hacked) into AOL's servers, AOL moves onto a new platform. AOL is looking like the exciting fast moving nimble company, and Microsoft is looking like the slow, reactionary behemoth. Has Microsoft finally caught the big-corporate-beast disease? As much as we hate to ever bet against Microsoft, AOL is simply moving faster, with better ideas, in many areas, than Microsoft is. The deal with Novell certainly doesn't mean a lot in terms of revenue. All the deal really means is that Novell and AOL will support the AIM protocols as the basis for instant messaging in Novell networks. But Novell networks are moving closer and closer to internet based protocols, as Novell Netware now supports the IP protocol. What the AIM deal does is get AOL deeply rooted into the technology of Netware. Five years from now, that will be very important. Netware is a huge installed base, but most people discount both its growth with existing customers, and its growth into the enterprise level. We agree that Netware won't sell into the enterprise as much of a challenge to NT, but Netware users have to evolve towards something. Now that AOL is in the software business, via Netscape, they have vested interests in getting the Novell Platform closer to the Internet platform, where the real battle is. With this seemingly small move, AOL has planted a flag firmly in Novell's territory. Since both strongly view Microsoft as the evil empire, it is a powerful synergy. The internet has no dominant single technology (other than IP, which no one owns). Dominance at the application level is the only way to get lasting advantage, and AOL appears to understand that. We wouldn't be surprised to see an AOL deal of some kind with Oracle (ORCL) now, the other great Microsoft nemesis. - RVG
