I am shocked to see the words "sell" and "Ntap" in a Downsouth post.
I think the word "not" was in that post, too, KY!
do you think the fundamentals have changed here?
The fundamentals have not changed, but the market niche in which our NTAP tornado will evolve (from NAS) is feeling ever-increasing turbulent winds:
Novell Launches Volera - New Venture Takes Flight Targeting Aggressive
Growth In the Content Networking Market Space
FRIDAY, FEBRUARY 2, 2001 8:00:00 AM EST
SAN JOSE, Calif., Feb 2, 2001 /PRNewswire via COMTEX/ -- Novell, Inc. NOVL,
the leading provider of Net services software, today announced the formation
of Volera, Inc., a new operating company targeting the emerging content
networking market. Volera will integrate caching and content management
services, creating a new level of Internet intelligence that speeds and
manages the delivery of content, allowing companies to realize the full
business potential of the Internet. Nortel Networks and Accenture have
signed definitive agreements with Volera to take equity positions in the new
company, with closing expected within the next ninety days.
"This is a defining deal for our industry and Novell," said Eric Schmidt,
chairman and chief executive officer of Novell. "The market has been looking
for new platforms to deploy next generation Internet services and
applications. With Nortel Networks and Accenture, we have the right partners
to bring our highly competitive new platform to market. At Novell, we see
Volera capturing early leadership in the rapidly developing Internet content
networking market, one of the most promising on the Net."
Volera will deliver a content networking platform that provides the scale
and intelligence to maximize the Internet's business potential. The newly
formed company will work to create a next generation Internet where content,
media and applications are delivered in the most efficient, secure and cost-
effective way possible from source to destination. Additional details on
Volera can be found at www.volera.com.
"We are entering the content networking segment with great products,
established distribution and partnerships, strong funding, and a complete
team," said Simon Khalaf, president of Volera. "Our products and services
set the industry standard in terms of speed, scalability and flexibility,
while also offering end-to-end management capabilities that today's Internet
customers demand," he added.
The agreements between Novell, Nortel Networks and Accenture call for the
firms to provide to Volera over US$80 million in cash, as well as consulting
services. Novell will also contribute technology and resources currently
within the company's Net Content Services Group.
Nortel Networks, in addition to its minority equity investment in Volera,
which includes warrants to purchase additional equity, will also enter into
joint development and distribution agreements with Volera. George Cooney,
Nortel Networks senior vice president of corporate development and ventures
said, "Intelligent content caching, distribution and management are key
elements of a content delivery network. Our relationship with Volera will
drive a new category of content caching and content management solutions
that will set new performance and functionality standards, and position
service providers to deliver upon the promise of a Personal Internet. The
investment is part of Nortel Networks strategy of continually investing in
leadership technology."
Accenture has been working with Novell and the Volera staff for over 6
months in planning Volera's initial Internet content services offering.
Accenture will purchase an equity position in Volera. Volera will also
continue to rely on services from Accenture. Accenture is performing
services that support Volera's sales, customer services, support and
business development. "Accenture is committed to helping Volera achieve its
business goals. Working together, we will be able to help clients leverage
this new network architecture to deliver content faster to the end
consumer," said Grieg Coppe, partner at Accenture. "We believe that
solutions such as those provided by Volera will redefine the way networks
are configured and will provide our clients with what they are really
looking for in a network: speed."
Volera Management
Eric Schmidt has been named Volera's chairman of the board, while Simon
Khalaf, formerly general manager of the Novell Net Content Group, has been
named president. Drew Major, formerly chief scientist and chief technology
officer for the Net Content Group, has been appointed chief technology
officer of Volera. The new company is headquartered in San Jose, Calif.,
with additional offices in Orem, Utah and Berkeley Heights, N.J.
Volera Products and Services
Volera's Internet Caching System (ICS) software is the fastest cache engine
in the world based on benchmarking by the Measurement Factory, an
independent entity. ICS addresses the performance and scalability needs of
content publishers, enterprises and Internet Service Providers (ISPs) by
offloading repetitive and resource-intensive activities from the Web server.
Volera's Content Exchange is a 100 percent hosted Web site acceleration and
content injection service. Content Exchange allows Web hosting centers to
offer fully managed services that combine site acceleration, virtually
unlimited site scalability, and Internet content transformation and
redistribution on-the-fly.
Market Leadership
Volera is already a leader in the cache appliance market based on cache
appliance shipments by Dell, Compaq and other OEMs that license ICS. Volera
estimates that it currently holds a 17 percent share of the worldwide market
for cache appliances after only one year in the market. The company intends
to expand its market share in 2001. Volera anticipates similar rapid growth
in the content services market in 2001.
In 2001, Volera will provide its customers and partners with content
management, streaming media and intelligent end-to-end network solutions.
The company will continue development of a content networking platform for
Internet data centers, ISPs and corporations that accelerates and secures
the delivery of content, media and applications.
Financial Information
The Novell Board of Directors has approved an initial plan to make Volera a
publicly held company, with the ultimate goal of distributing Novell's
interest in Volera to Novell shareholders. Any distribution of Volera stock
is intended to be tax-free to Novell's US shareholders, and will be
dependent on receipt of a tax ruling from the U.S. Internal Revenue Service
confirming the tax-free nature of the planned distribution, and final
approval by the Novell Board of Directors.
Growth and development of Volera's business could lead to an initial public
offering for stock in the subsidiary company as early as late 2002. This
will be dependent on future market conditions and other factors and would
occur prior to any distribution to Novell shareholders.
The formation of Volera is an important step forward in Novell's transition
to a Net services business. Volera is addressing a market opportunity that
is different from, but complementary to, Novell's primary business of
providing Net services software in eBusiness solutions for the business,
government and education markets. The products and technologies transferred
to Volera by Novell are all in early stages of market adoption, and
represented less than one percent of Novell's Fiscal 2000 revenue of $1.16
billion.
As a subsidiary of Novell, Volera revenue and expenses will be consolidated
in Novell's income statement and financial reporting.
About Novell
Novell, Inc., is a leading provider of Net services software that delivers
services to secure and power all types of networks -- the Internet,
intranets, and extranets; wired to wireless; corporate and public -- across
leading operating systems. Novell's Net services software provides the
foundation for one Net -- a single global network that supports new
applications and forms of business. Worldwide channel, consulting, education
and technical support programs, along with strategic alliances, combine
Novell(R) Net services software with third-party products and services to
form complete Net solutions.
For information on Novell's complete range of products and services, contact
Novell's Customer Response Center at 888-321-4CRC (4272), or visit Novell's
Web site at www.novell.com. Press may access Novell announcements and
company information on the World Wide Web at www.novell.com/pressroom. In
addition, detailed comparisons between Novell products and competitive
offerings from other vendors are available on the Web at
www.novell.com/competitive.
About Nortel Networks
Nortel Networks is a global Internet and communications leader with
capabilities spanning Optical, Wireless, Local, Personal Internet and
eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and
serves carrier, service provider and enterprise customers globally. Today,
Nortel Networks is creating a high-performance Internet that is more
reliable and faster than ever before. It is redefining the economics and
quality of networking and the Internet, promising a new era of
collaboration, communications and commerce. Visit us at
www.nortelnetworks.com.
About Accenture
Accenture, formerly known as Andersen Consulting, is a $10 billion global
management and technology consulting organization. The firm is reinventing
itself to become the market maker, architect and builder of the new economy,
bringing innovations to improve the way the world works and lives. More than
70,000 people in 46 countries deliver a wide range of specialized
capabilities and solutions to clients across all industries. Under its
strategy, the firm is building a network of businesses to meet the full
range of client needs -- consulting, technology, outsourcing, alliances and
venture capital. Accenture's home page address is accenture.com .
Conference Call Notification with Web Access Detail
A live Web cast of a Novell media and analyst teleconference to discuss its
announcement of Volera will take place at noon EST Feb. 2 from the Novell
Investor Relations Web page: novell.com . Through
midnight, Feb. 9, an audio replay of the call will be available from the
same address. A telephone replay of the conference call will be available
after 2:00 PM EST February 2 through midnight, February 9. To access the
playback by phone dial: 888-566-0787. |
