Introduction to Novell
Novell, Inc. has made news over the years for its business struggles. Novell enjoyed success as a popular vendor of network software -- principally the NetWare® operating system. Today the company is working to build an Internet networking business, but they face strong competition.
NetWare
The NetWare operating system supports the networking of personal computers (PCs). Installed on a PC, NetWare creates a server environment for the sharing of files, printers, and other network "services."
One of the first software products designed for PC networking, early versions of NetWare appeared in the late 1980s. NetWare 3 was originally called "NetWare 386" and released for use with Intel's 80386 processor. Likewise, Novell developed NetWare 4 in the early 1990s for the Intel 80486. NetWare 5, the latest version of Novell's operating system, has been available since September, 1998. Together, NetWare 3, 4, and 5 enjoy an installed base of millions of servers worldwide.
NetWare encountered stiff competition from Microsoft beginning in the mid-1990s with the introduction of Windows NT Server products. Some believe the rapid growth of Linux server networking -- although difficult to measure accurately due to the open nature of that operating system -- is also impacting NetWare's popularity.
NDS
The media sometimes refers to Novell Directory Services (NDS®) as the "crown jewel" of Novell's product offerings. Like NetWare, NDS has benefited from a long development history resulting in mature technology with a large installed customer base. What makes NDS especially appealing is its flexibility and the range of potential applications in network management and ecommerce.
NDS is an LDAP directory service. Directory services like NDS provide information repositories for distributed network resources ranging from devices to Web site customer profiles. LDAP -- the Lightweight Directory Access Protocol -- offers a standard way to access this information.
Web sites such as CNN and AltaVista use the NDS eDirectory™ product. eDirectory tracks visitor activity to these sites, building a special-purpose "database" of customers that can be used to provide personalization services. While NDS was originally a NetWare-only technology, eDirectory now works with Windows NT and 2000, Solaris, and Linux in addition to NetWare 5 servers.
Novell offers several other products based on eDirectory technology. NDS Corporate Edition, for example, implements network resource management. The digitalme™ service adds more secure personalization capabilities to eDirectory. As with NetWare, however, Novell faces competition in the directory services space from Microsoft Active Directory (not to mention products from other vendors such as iPlanet Directory Server).
More Web Services
In 1996 and 1997, Novell achieved some success with its IntranetWare product family design for intranet data sharing. Today, Novell continues to offer GroupWise email and calendaring for intranets (and other Web-based networks).
Novell also is working with technology for Web content caching. The Novell Content Exchange subscription service brings Internet caching and other software to the data center where Web content is served.
Conclusion
Novell's low stock price has led to speculation of a possible buyout in the company's near future. These rumors are nothing new. As far back as 1996 and 1997, industry pundits debated various buyout or merger scenarios involving IBM, AT&T, Netscape, and even Microsoft. None of these scenarios came to pass, so perhaps it most likely -- layoffs aside -- that Novell will continue working to grow its network services business in the months and years ahead.
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