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


To: Paul Fiondella who wrote (26028)3/13/1999 9:55:00 AM
From: Phil Jacobson  Read Replies (1) | Respond to of 42771
 
Paul,

Excellent view of the big issues for all NOVL investors! I've e-mailed it to several friends and colleagues who I've been talking to about Novell lately. Wish the analyst departments at the brokerages could do that even half as clearly...

Actually I expected a bit more from you on the downside, it's funny how the zits sort of disappear when you're in love.

I think the marketing issue is still a downside risk, which extends from communicating the value of directories to breaking into the brains of people who think they should be committed to MSFT. Big challenges, plus Eric still has some internal legacy issues in that area.

Phil



To: Paul Fiondella who wrote (26028)3/13/1999 10:57:00 AM
From: DJBEINO  Respond to of 42771
 
NDS Powers Hosted Apps
Jeffrey Schwartz

Orem, Utah - As Novell readies the next version of its flagship directory software, the company is looking to extend the technology's reach beyond the walls of the enterprise.

This week, Novell will disclose the first in an expected series of partnerships with Internet backbone providers aimed at broadening deployment of Novell Directory Services.

With NDS installed in the service provider network, IT managers will be able to outsource critical applications such as Internet connectivity and remote access while retaining tight management controls, Novell officials said.

Apex Global Internet Services (AGIS) will deploy NDS and Novell's BorderManager caching and VPN software to offer VPN services and user account management. Over time, AGIS will add provisioned quality of service (QoS) and application hosting across multiple networks.

The latter is contingent on NDS being supported by a wide variety of networking gear; Cisco, Lucent Technologies and Nortel are all readying versions of their products with NDS functionality.

Those products are scheduled to start shipping sometime in the next quarter.

Some IT managers said they like the idea of outsourcing directory-enabled applications, but they cite pricing and security as potential causes for concern.

"It's quite a bit of work to maintain that external part, but it all comes down to price. We would need to see security demonstrated and we would want to have full end-to-end control over the process," said Orrie Holmen, enterprise network administrator at the Dallas Area Rapid Transit, which uses NDS and BorderManager internally to provision its Internet services.

Other customers said they have no interest in turning over their applications to an ISP.

"I believe in central management, so I don't think having someone else manage it is interesting," said Julie Powers, senior technology lead at ReliStar Financial Corp., an insurance company.

"We would be too concerned about security," added Kerry Hollis, assistant vice president of LAN and WAN projects at South Trust Bank.

Novell's partnership with AGIS is the first of an expected flurry of deals with ISPs and carriers, Novell officials said.

NDS will let providers offer levels of service and access rights based on who they are in the directory. AGIS will begin offering NDS-enabled services this summer at an undisclosed price.

Novell officials said NDS services offered by AGIS and other providers will be important to IT organizations that want to use directory-enabled networking technology but don't want to manage it internally.

"In general, there really isn't any QoS on the Internet unless you stick with a particular backbone player," said Novell chief scientist Drew Major. "That's what backbone players are scrambling to offer."

More Customer Control

AGIS officials view hosted service based on NDS as an opportunity to let corporate customers subscribe to QoS without investing in the infrastructure.

"This will allow customers to have a lot more control over their networks," said CEO Al Adams. "And it will allow that control from their LANs."

The service will hold particular appeal to small and midsize businesses, said Jamie Lewis, president of the Burton Group consultancy. "They don't want to pay for the staff," he said.

The services initially will require customers to use NDS in their enterprise to maintain local profiles for users of the service.

Andrew Percy, president of Puzzle Solutions, which itself offers outsourced VPN and network services using Novell technology, warned that Novell has a shaky track record when it comes to carrier services.

He pointed to the failed NetWare Connect service, which enabled users to access corporate networks via a telco and, more recently, the Internet Enhanced Service Provider program, an application service provider offering unveiled roughly one year ago. A Novell spokesman said that program has taken longer to roll out than expected.

Service provider functionality is included with the new version of NDS, which Novell released to beta last week and plans to demonstrate at its BrainShare user conference in Salt Lake City next week. Novell will demonstrate NDS version 8 with 1 billion entries.

By comparison, the current version maxes out at 1 million entries. The release also will add native LDAP support.

"The directory is the integration point for the enterprise as well as the Internet," said Chris Stone, Novell's senior vice president for strategy and corporate development, in unveiling the NDS beta last week.

"Essentially, what most people want out of e-commerce is to extend these internal systems to make them self service and secure over the Internet," said Michael Simpson, Novell's director of strategic market planning.

Also at BrainShare, Novell will demonstrate a point-release upgrade to NetWare 5, which will include improved Internet standards support and multiprocessing.

Standards support will come in the form of a native HTTP server built into the NetWare platform.

Novell said 6 Pack, the code name for the new release, also will incorporate NDS 8.

While NetWare 5 has limited multiprocessing capabilities, 6-Pack will add multiprocessing to print, file, security, storage management and connectivity functions of the NOS.

The company will demonstrate the new release on an eight-way Compaq server at the show. And a Compaq spokesman confirmed that the PC manufacturer will demonstrate a server dedicated to caching. He would not elaborate, other than to say that it will be a single-function caching "appliance."

Brian Faustyn, Novell's director of product marketing, also said Novell will demonstrate Modesto, its 64-bit version of NetWare designed for servers powered by Intel's forthcoming Merced processor.

The company has not disclosed when 6 Pack will ship, but it will be released in limited beta next month. Novell's goal is to ship Modesto when Merced ships. Intel has scheduled Merced for release in the middle of next year.

Copyright ® 1999 CMP Media Inc.

techweb.com



To: Paul Fiondella who wrote (26028)3/13/1999 11:11:00 AM
From: E_K_S  Respond to of 42771
 
Hi Paul - There are a lot of positive Novell & Compaq postings on the COMPAQ thread ...I think this "rumored" Novell Compaq partnership will be a good long term positive for Novell.

"... March 15, 1999, Issue: 833
Section: News

Brainshare XV: Resurging Company To Strut Stuff -- Novell
To Showcase NDS, Caching Partners
Lee Copeland & Stuart Glascock

Provo, Utah -- Novell Inc. and Compaq Computer Corp. are back in the saddle again.

Riding the cusp of a resurgence wave, Novell is developing with Compaq a dedicated caching appliance to reduce latency and conserve bandwidth, sources said. The vendors also will team to demonstrate the scalability of the next NetWare, code-named 6 Pack, on Houston-based Compaq's upcoming eight-way server, they said.

The two companies will debut both products at Novell's 15th annual BrainShare conference, beginning March 21 in Salt Lake City.

Compaq has had a team of developers from its Enterprise Group working on the appliance, a spokesman said. The product would attach to desktops or servers, he said. The appliance will include remote IP administration and auto rebuild features, said a Novell VAR familiar with the device.

"The big benefit is potentially lower cost," the VAR said.

Last April, Provo-based Novell struck a deal with Pinacor Inc., Tempe, Ariz., to bundle BorderManager with Compaq's ProLiant servers.

"Any collaboration between Novell and Compaq will provide tighter
integration and support options for everybody in the field," said Don Porter, network administrator for UtahLink, a state-owned ISP for Utah's public and higher-education system.

UtahLink, one of several closed beta sites for the product, has installed BorderManager/ProLiant on each of its 11 Internet hubs. UtahLink proxies more than 200 million hits per day on a network of Sun and Novell servers. With BorderManager installed, Porter estimates some hubs have a 70 percent cache hit rate. Because recurrent pages are stored locally, the process cuts bandwidth utilization.

Meanwhile, the next generation of NetWare offers scalable, Web-based networking and greater management through multiprocessor enabling of all NetWare core services. 6 Pack will add Novell Directory Services (NDS) version 8 and will take advantage of server management capabilities of directory-based ZENworks for desktop management.

Compaq plans to incorporate 6 Pack's processor optimization in a
demonstration of the hardware vendor's upcoming eight-way server technology at BrainShare, executives said. Modesto is Compaq's planned 64-bit server operating system designed for Intel Corp.'s future IA-64 processor. Novell plans to demonstrate an application and 64-bit server operating system in a simulated Intel Merced software development environment, said Brian Faustyn, Novell director
of NetWare marketing.

Modesto and Intel Corp.'s Merced are scheduled for release in mid-2000. 6 Pack is expected to ship in beta in April.

BrainShare also will showcase NDS Release 8, a scalable version of the company's NDS, code-named SCADS. Unveiled last week, Release 8
will support up to 1 billion objects, said Chris Stone, senior vice president of strategy for Novell.

Edward F. Moltzen contributed to this story.
====================================================================
These new products should translate into higher sales for BOTH COMPAQ and Novell perhaps as early as 2nd or 3rd quarter 1999.

EKS