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

To: Scott C. Lemon who wrote (30895)	4/2/2000 8:48:00 PM
From: PJ Strifas	Read Replies (1) \| Respond to of 42771

So basically I'm looking at 2 possibilities: 1) Novell gives eGuide away as proof that Directory-based apps can enhance the user experience (even beyond the firewall because eGuide is just the type of app that users will utilize even outside of work!). With that strategy, Novell will need to continue to build (and/or encourage other companies to develop) Directory-based apps that will solve business (and end-user) problems. The leverage would be in not one or two of these apps but a bundle (or suite) of apps directed towards making life easier for the average corporate end-user. 2) Novell decides that eGuide is worth $X.00 per user right now and tries to drive a revenue stream because eGuide is worth it. Now does one app make a solution? If I may suggest here, Novell could develop a 2 pronged strategy with #1 being a tactic to populate the Directory-based apps market with useful products. Then Novell would not suffer in bundling eGuide and other future products (or from partners) into a "services" package for eDirectory that down the road is something that is either incorporated into the price of eDirectory or sold as a separate bundle? Either way, it will be interesting to see how Novell tackles the perceived problem of not only finding the right market(s) for these products but the right pricing point as well. We know what competitors have done in the past...what lessons has Novell learned? Regards, Peter J Strifas As for your Netscape scenario: The dilemma gets even deeper when you take into consideration that Netscape "bet the farm" on a strategy that was doomed to failure (IMHO). Basically Netscape decided to give away the "entry vehile" [browser] to the marketplace and then sell high-end, high-priced server software for companies to build a web presence for these users to then visit. Sort of like giving away bicycles so people use your toll bike ways and trails....then someone creates free bike ways and tracks and guess who is sitting out on a financial limb with their strategy? Another lesson here?