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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Don Troppmann who wrote (30681)	3/10/2000 10:10:00 PM
From: PJ Strifas	Respond to of 42771

That's exactly what I'm talking about and I think some of my esteemed colleagues on this thread also believe it. It's just they have a very strong passion about the technology Novell is SITTING on. Novell needs to "unbundle" their potential and doing so means taking a chance in a time where taking chances is REWARDED. [evidence - 3Com's meteoric rise erupting into the Palm spinoff] Is it me or does anyone else believe that releasing ICS as an OEM product was more than just a token gesture and a good PR move? Look at the value of ICS and the OEM pact: 1) It's proven itself in a head-to-head testing (yes, everyone's entry is "rigged" to produce the best possible results according to the requirements of the testing suite but doesn't that mean all the entries are tweaked?). Even with a healthy dose of skeptism you have to admit ICS is a very good choice for any website (or hosting company). 2) It offers the traditional Intel-based PC makers an entry into a market that has up until now been DOMINATED by BIG $$ boxed (usually SUNW hardware with some flavor of UNIX). This is a good thing - get Intel and the PC makers to start developing hardware solutions for network appliances as well as get a "proof of concept" in the bank.... The first item means that Novell still has good engineers working hard to develop products that MEAN something in this new e-conomy. The second item sets the stage for more network appliances based on current and future Novell software products. I don't think PC makers and Intel will balk if Novell starts pumping out more OEM network appliances (SecureMe is next) and they have the same type of acceptance that ICS has. Think of it, you know have a dozen+ companies pushing your appliances because it means something to THEIR bottom line! [remember history? some other SOFTWARE company made a KILLING with a good OEM pact!] Now if Novell can work with IBM Consulting and Compaq's people and extend their own Consulting division into a force in the marketplace.... Ok, so where does this leave Novell?? Spin off a division based on Network Appliances - ICS, SecureMe, a Network Storage solution, Printing Services....let it track these new forays into markets that have unlimited potential in a fast growing world. Of course this spinoff is probably a year or 2 away. You need more than just one product to make a spinoff successful. I know, Palm Computing has basically ONE product but hey, does anyone here really think the current Palm is the end of the trail or just a plateau until the next best thing comes along and moves us forward? Regards, Peter J Strifas

To: Don Troppmann who wrote (30681)	3/11/2000 3:11:00 PM
From: Paul Fiondella	Read Replies (2) \| Respond to of 42771

Something concrete for shareholders to demand In reading your post I think you have outlined something reasonable for shareholders to "demand". Novell has been viewed for some time as a legacy networking company being made over into an internet powerhouse by Eric Schmidt. The reality is much more complicated as can be seen in the net services message --- everything you need to expand your network and service your network where the word network now encompasses internet and corporate as one network. This is not the type of message that an internet focussed company can put out. Remember Netscape before Sun took over much of its business didn't have anyway of getting into the corporate market. They were equipped to sell web servers but not corporate solutions. Now Novell is the opposite case, equipped to sell corporate solutions. It has had a much tougher time with internet focused products and with any products developed to address the needs, demands and enthusiasms of either corporate or internet end users. The company needs an infusion of creativity to overcome this hurdle but not into its mature businesses such as netware --- where the slots are all labeled and the hierarchy and reporting lines well established. So the message of separating Novell into two companies, one with a net services, solutions oriented build up from the netware agenda and base, and the other, encompassing new businesses, new customers and new products, a start-up oriented company where new talent can fit in and where politics is less important just might be a reasonable demand to make of management. Certainly there is more money for sharehodlers in this approach. Perhaps Schmidt could have won the battle the old way if he brought in lots and lots of new blood into the old Novell. But he clearly didn't. The winners in the corporate game were the Groupware guys and the old business strong revenue netware type management. These guys do not take chances with anyone or anything. They are into survival --- corporate survival. Schmidt could well be pressured by shareholders to create another type of company more focused upon end users and more focussed upon mining Novell technology for internet revenue gems. Give this groups the caching revenue stream. Give it a non-corporate start-up style of management. Take the group around strategic planning and remake that into this smaller independent version of Novell where new exciting products are developed. (something like what happened with the original PC and IBM) It's possibly worth a try and some dialogue to see if it makes sense. Right now I think it conflicts with the notion of a directory based company which Schmidt has. An NDS focused single company trys to leverage Novells directory strengths into both the corporate and internet marketplaces. While Novell may want that to happen, we don't see it yet. We are still waiting for the killer directory based app to make it happen. We can wait or we can provide an alternate path to the same end. I humbly plead openness as to which method is best for Novell as a company. I do know that the company needs fresh blood and new talent and to take chances with both people and products if it is to survive in its present form. I am not at all disatisfied with the current Schmidt strategy. I just think it is worthwhile pursuing some alternatives, especially ones that will bring more talent into the company. Talented people are going to startups today in record numbers. The rewards are greater and the corporate political hassles are less. Novell needs to address this problem. It never works to take bright young people and turn them over to corporate infighting. Too much blood is shed and too much energy is focused on wasteful positioning. Whose guy is he? Will he help me or make me look foolish! Is he on our side? Or on some other groups side? This is all too crazy for me. I'm not sure that Eric either wants to be involved in understanding all this or whether he even thinks its a problem. I certainly can only speculate. And I do so, unlike my fellow poster Mr. Smart, in general support of the current senior management at Novell.