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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Mike Milde who wrote (10804)9/16/1998 8:47:00 AM
From: Spartex  Respond to of 74651
 
Scalability and Reliability

The terms scalability and reliability have become commodity themes used by technology suppliers to describe
their products. In reality, marketing that touts reliability and scalability for a product does not always perform as
promised.

The scalability of a NOS is not necessarily directly measurable by support for symmetrical multi-processing
(SMP). More important is its level of robustness and efficiency at the kernel level. A poorly designed operating
system running on a four-processor system is by no means more scalable than a well-designed operating system
running on a single processor.

In the data center, mature mainframe and Unix operating systems scale well ( little operating system overhead is
needed as processors are added. Doubling the number of processors in a Unix system usually translates into a
1.8 to 1.9 times increase in processing power.
For NT 4.0 Server, moving from 2 to 4 processors leads to no more than a 1.5X to 1.7X increase in processing
power. And, NT effectively maxes out at 4 processors, even though some marketing literature states it can go
up to 32.

Novell has developed a reliable and scalable kernel for NetWare 5 that is optimized to scale for networking
services. Novell¡s NDS directory allows for much better networking scalability than Microsoft NT 4.0¡s
flat-file, immature directory architecture.

To evaluate Microsoft¡s Windows NT 4.0¡s scalability and reliability, Aberdeen has conducted numerous
end-user interviews. These studies indicate that Microsoft NT 4.0, when implemented as a NOS, leads to
countless reliability issues requiring server reboots due to frequent crashes. Aberdeen has found that scalability
is also an issue. While NT 4.0 works fine when deployed in small workgroup or departmental implementations,
when deployed in a larger networked environment, the NOS is unable to handle the challenge.

Finally, Novell Storage Services (NSS) in NetWare 5 provides an improved level of storage capabilities that
support high availability and clustering capabilities. The benefits of using NSS are enhanced reliability, speed,
and infrastructure for distributed file systems. Shattering the existing file limitations for 4GB to 8 TB on
NetWare 5, NSS will do 8 ZetaBytes on a 64-bit Merced making it a world-class data storage management
utility.

The need to have scalable and reliable NOS technology is critical to any distributed computer environment.
However, regardless of the enhanced scalability and reliability features that are included, if the underpinning of
the core technology is not built well, the product itself will be the point of failure( despite the additional feature
capabilities.

Delivering IP Open Standards

Building solutions on open standards offers businesses investment protection, a higher level of manageability,
and greater interoperability with both current and future technologies.
Based on open standards, NetWare 5 can support pure IP-only networks, resulting in a fully connected
networked environment with only one protocol to manage. Pure IP is a large improvement from previous
versions of NetWare that had to either encapsulate IP packets in IPX or use gateways to translate one to the
other ( both of which slowed down data transfer.

While Microsoft offers native IP, Aberdeen has found that in most situations Microsoft¡s IP needs to be
supported by additional protocols ( such as NetBEUI ( to provide full connectivity between various server and
client types ( even if they are all Windows-based. Multiple protocols can cause management inefficiencies as
well as increased network traffic.

The business benefits of pure IP are greater bandwidth availability, faster network performance, more secure
data communications, and closer integration between a business¡s network and the Internet. As network
computing increasingly relies on the Internet, the need for more seamless and higher performance
interoperability is critical for optimal computing efficiency.

Underlying Future Application Support

Most ISVs have followed the demand curve, and have ported their applications to NT Server. While NetWare
can run or launch many applications, the way that applications are currently developed for NetWare is
cumbersome. Historically, NetWare has been tuned for network services, just as NT has been tuned as an
application server.
However, Novell is jumping on the Java bandwagon. NetWare 5 has a Java Virtual Machine (JVM) inserted in
the operating system, allowing developers to more easily create network applications in Java. Offering greater
flexibility for programmers, the JVM also supports CORBA object architecture, as well as VBScript-compatible
JavaBeans for NetWare, JavaScript, and Perl 5.

At launch, NetWare 5 will have 200 certified NLM applications and 80 Java applications available. Novell is
appealing to young Java start-ups ¢ because of the draw of NetWare¡s huge installed base ( with the rational that
it requires less expensive hardware upgrades than Windows NT. As a result, the number of Java Applications
written for NetWare 5 is steadily growing.

NetWare 5 now also offers memory protection for applications, which provides applications crash protection. If
one application crashes, it will not bring down all of the other applications that are running on that same
platform. Finally, Novell has written and tightly integrated the Oracle 8 database with NetWare 5 and NDS.

Corporate Viability of Novell

The combination of unfavorable marketing conditions, a major increase in competition, and a series of
disastrous business, management and marketing decisions have done severe damage to Novell¡s image over the
past three years.

Managers will often buy mediocre but key products from a company that is seen as a long-term financial and
marketing winner rather than superior products from a company that is behaving like a loser.
Thus, the shoring up of Novell¡s management team and its balance sheet over the past year has been as
important as improving the company¡s product set. The most recent financial results have been quite positive,
and with almost $1 billion in cash on hand ( capable of meeting a year¡s cash flow requirements ( Novell¡s
financial health is good and improving. A new management team was put in place 18 months ago, and a new
strategy has been in place for a year. How well this team is executing on its new plan will be seen with the
roll-out and market acceptance of NetWare 5. But, to date the signals have been very positive.

Conclusions
The health of an enterprise¡s IT infrastructure is a key factor in determining corporate viability and
competitiveness. Increasingly, the Network Operating System is being used as the glue that appends all of
network¡s disparate technologies. The NOS dictates the potential level of performance, productivity,
management efficiency, connectivity, security, scalability, and reliability a network and enterprise can achieve.

Marketing and supplier branding are driving forces behind buying trends in the NOS market, with very little
attention being paid to the NOS technology itself. Aberdeen has found that Microsoft NT Server 4.0 has done a
satisfactory job functioning as a departmental application server and as a NOS for isolated workgroup
environments. But the reality is that it does not live up to its marketing portrayal as the enterprise-wide network
operating system IS executives should bet their careers on.

In addition, Aberdeen¡s end-user research shows that NT 4.0 is just not mature enough to handle the load of
large-scale, enterprise computing. Contrary to popular belief, NT is not ready to replace all other NOSs at the
enterprise level. In fact, because NT Server does not have a proven track record of being able to function alone
without incident, Aberdeen views NT as a child that has potential, but that still needs adult supervision.

As more applications move from just being Java enabled to being Java based, NetWare¡s underlying superior
features will put it back in high demand as an application server.

While Novell¡s time-proven, enterprise-quality technology functions successfully in an all NetWare
environment, it also provides the support and guidance needed to manage and administer NT solutions. NDS,
along with additional management components integrated into NDS, has set Novell far ahead of its competition.
By identifying its own strengths and the other operating systems¡ weaknesses, Novell has created a platform
that can seamlessly integrate technologies from other vendors, allowing companies to deploy best-of-breed
solutions.
Scores of interviews with IS managers by Aberdeen analysts over the past year have shown time and again that
the enterprise¡s key IS professionals want to expand NetWare¡s role as the enterprise¡s primary NOS. These
same grizzled veterans describe the pressure they are under by their business counterparts to move to NT Server
as the NOS.

NetWare 5 is not the universal panacea needed to cure all of the enterprise¡s networking ills. But, it should play
a major role in IT operations over the next several years.

Aberdeen¡s message to Line of Business managers is quite simple. If your wide-scale implementation of
application servers, along with the growing use of networks for business purposes, is to be successful in the
long run, it will do so only in a heterogeneous environment. This is a fact of life. It is dysfunctional to think that
any one product or firm is capable of meeting all the myriad demands being placed on the IT network
infrastructure.

But the key strength of NetWare 5 remains its ability to manage heterogeneous networked technology
components. IS buyers can choose the best-of-breed application server, and Novell will integrate with it.

c 1998 Aberdeen Group, Inc. Telephone: 617 723 7890
One Boston Place Fax: 617 723 7897
Boston, Massachusetts 02108 www.aberdeen.com

Aberdeen Group, Inc.
One Boston Place
Boston, Massachusetts
02108
USA

c 1998 Aberdeen Group, Inc.
All rights reserved

September 1998Aberdeen Group is a computer and communications research and consulting organization
closely monitoring enterprise-user needs, technological changes and market developments.
Based on a comprehensive analytical framework, Aberdeen provides fresh insights into the future of computing
and networking and the implications for users and the industry.
Aberdeen Group performs specific projects for a select group of domestic and international clients requiring
strategic and tactical advice and hard answers on how to manage computer and communications technology.

PRODUCT VIEWPOINT

Table 1: NetWare 5 and NT Server 4.0 Comparisons

Microsoft NT Server 4.0Novell¡s NetWare 5DirectoryNo directoryProven technology for almost 6
yearsManageabilityDifferent management interface for each network service or functionStore and manage
network data, users, resources, and services from one locationSecurityLack of strength and availability of
Microsoft developed security features. NT 4.0 has single sign-on capabilities, but weak encryption and no
Public Key Infrastructure Service (PKIS) supportDirectory-based, security enhancements support high-level
encryption, Public Key Infrastructure Service (PKIS) support, Secure Authentication Service, and Single
Sign-On (available in early 1999)ScalabilityComparable SMP support, known kernel instability, difficult to
scale flat-file architecture used to manage users, resources, and server servicesComparable SMP support, new
more stable kernel (proven at beta test sites), easy to scale directory. Novell Storage Services (NSS) also adds
scalability options.Application SupportGood application server with strong support from software
developers. Lack of a management tools to manage multiple applicationsNDS seamlessly manages NT¡s
applications, which provides optimal management efficiency. Novell currently trails behind Microsoft in
application supportSource: AberdeenGroup, September 1998