Novell Inc., a leader in computer network technology, has headquarters in Provo, Utah. There are also Novell facilities in other countries including Australia, France, Japan, Spain and Switzerland.

In general, the term network conjures up the image of individual parts connected to form a system. The idea is the same when you are speaking in terms of computers. A computer network is a group of computers that communicate with each other. These computers share information, other components and access to a main computer. And in the computer industry, this technology is associated with the Novell name.

Novell, based in Provo, Utah, makes system software products and develops network services for network computing. As the market leader with 60-70% of the market share, this company's goal is to accelerate the growth of network computing through its NetWare, DR DOS and UNIX SVR4-based products.

These three product lines are types of network operating systems. An operating system is software that controls the hardware it is running on. So a network operating system controls the entire network and its functions.

The operating systems made by Novell are run on the part of the network called the server. A server is the computer in a network that runs the controlling software (the operating system) and provides access to the network and network resources. The other computers on the network are like individual workstations, or terminals, and the server distributes resources to these computers.

Another type of setup between the server and the other computers in a network is called client/server architecture. This arrangement takes advantage of the greatest computer power available from both the server and the individual workstations. Each computer is handled as a programmable component. In this system, the client is an individual personal computer and the server is either another personal computer or a high-level computer designed to carry out more sophisticated tasks. This would be the main computer.

In a client/server network, the client and server both work together when running applications to increase processing power and use it more efficiently.

Novell's networking products cater to a broad range of customers. A network can be as small as a group of connected desktop computer users or as large as a system that runs throughout an entire company. Even more extensive networks can span across an entire geographic area.

Today there is a wide variety of NetWare products. NetWare software is designed to manage, share and translate information on a network. It enables different types of computers to share services on a network. Services might include communications, printing and a database, or a group of organized information.

The first version of NetWare gave a network more functionality. Versions to follow increased performance and management capabilities and gave support to a greater variety of systems.

The most recent NetWare product is called SFT III. Novell expects it to be one of the top impact products in 1992 and into 1993. This product is based on fault tolerance. It is a network that never stops working because it has mirrored servers. This means that two servers are connected together with a high-speed link and they keep an exact image of each other. If one side of the server encounters a hardware problem of some sort and goes down, the other server automatically takes over. You never completely lose network service. This means that maintenance can be performed on one server at a time without taking the network down. It is a strong advancement in network technology.

DR DOS is an operating system for a single-user personal computer. But DR Multiuser DOS is used with a main computer and up to 16 other terminals. (DOS, which stands for disk operating system, is the most common operating system used among IBM and compatible computers. DR DOS is a type of DOS originally created by Digital Research Inc., which has been acquired by Novell.) Users can share network resources, information and programs, and each computer has multitasking capabilities. Multitasking features allow the computer to work on more than one task at a time.

DR Multiuser DOS is effective in small business and department environments because it is easy to work with and install for users who need to share information.

Other products from Novell are based on the UNIX SVR4 operating system. UNIX is a multiuser, multitasking operating system created by AT&T Bell Laboratories. (Univel, a subsidiary of Novell, develops Novell's UNIX products.) nixWare software operates on industry standard hardware.

New products using the UnixWare operating system were introduced in 1992. These included versions of the UnixWare operating system for application servers and client servers.

But Novell's products were not always centered on networks. In fact, before networks, Novell wasn't even making software.

Ray Noorda, president and CEO of Novell, has been with the company since 1983, when he began to refocus Novell toward software.

Novell's History

In 1983, NDSI (Novell Data Systems Inc.) was primarily a hardware company. According to Bob Young, director of marketing for the NetWare products division, NDSI was making computers and some add-on accessories for them. The company was toying with the idea of connecting multiple computers together and began to investigate the concept further.

Part of the investigation involved consulting a man named Ray Noorda, who would eventually become president and CEO of Novell. Noorda had formerly worked in management at General Electric and later left to advise small companies that were in trouble by helping them turn their businesses around financially and strategically. So when Noorda came to Novell, the company was in for a drastic change.

"Ray actually came out to become president and immediately began to refocus the company," Young says. Noorda felt that the idea of connectivity looked like a challenge, Young says. The concept seemed like something that could be revolutionary, so Noorda decided to take on the challenge.

As far as Noorda was concerned, hardware was fine, but he was more interested in finding a way to connect the individual computers. Over a period of about six or seven years, Young says, Novell moved away from the hardware business to focus exclusively on software, as is the case today.

"The key to that movement was our focus on building a network operating system that connected industry standard systems," Young says. "Ray got away from hardware and moved into a very open connectivity software type of focus."

Novell Emerges

That was in 1983. At that time, most communication taking place between computers was happening by way of a host, or main, computer. Even though you had your own computer in the link, there was a central computer that governed your communications with the other terminals.

"There was kind of a rebellion that happened during the early '80s where people said 'I don't want to rely on the central resource, I want my own resources,' " Young says. So everyone went out and bought their own personal computers and the communications stopped.

That's when Novell suggested that all of these standalone computers (computers that do not require support from another device) share resources, such as printers. People became interested in the idea, Young says, and their interest produced the LAN, or local-area network. This is a group of computers and other components that exist in a limited area and are connected by a communications link so these units can communicate with each other.

People were setting up LANs and eliminating the corporate computer. This process became the technology of the future.

"Over the past several years it's become very strategic for companies to use this technology to tie together their whole company," Young says. And no other company has been focused on providing this kind of solution, he says. But now Novell does more than tie together local-area networks that are confined to one location. The products that Novell puts out today connect worldwide networks.

"We still lead the industry in local networks," Young says, "but we are also the leader in these larger enterprise-wide networks. We have been able to provide better network performance than anyone else." That's why Novell holds such a large percentage of market share today, Young says.

Another reason for Novell's success, Young says, is its ability to take on partnerships with other companies that possess the expertise Novell is after.

"I think we do partnerships better than anyone in the industry," Young says. "We are very good at 'win-win' partnerships." Since Novell has changed the meaning of network computing from local systems to broader connections, many different technologies can be included. So Novell defines the technologies that are important to networks and seeks out the companies that specialize in those areas.

For example, when Novell needed to increase its knowledge of the UNIX operating system, the merger with Excelan Inc., a company with expertise in UNIX, took place. To enhance it's knowledge of database and programming development tools, Novell acquired a company called Softcraft Inc. And to integrate desktop functionality into the company, Novell acquired Digital Research Inc.

"The idea here is, where we see that there are complementary technologies that need to be pulled together," Young says, "we will go out and look for a partner or go acquire a company to bring that expertise inhouse." It is important to find companies that have complementary skills and technologies and work on forming a synergetic relationship. And Noorda is a master at this, Young says.

Acquiring a competitor, on the other hand, is more like winning a battle and taking over, Young says. And merging with a company that has skills and technologies unrelated to your own is self defeating because it does no good to collaborate with a company you know nothing about.

"We go in and say 'you guys are the experts here and we are the experts here, let's work together to make this very synergistic,' " Young says. Using this method, Novell has been successful at acquiring companies with strengths that enhance its own.

Success is definitely the operative word. Novell's success has surpassed the expectations of onlookers from the beginning. Young says, during the period in time when experts said Novell would go out of business, its market share actually increased. Now, he says, Novell is almost a billion dollar company with reported revenues of $225 million as of May 1992. And Novell holds partnerships with "the leading players" in the computer industry.

"The competition is coming after us again," Young says, "but you're not hearing the same words anymore."

Two popular network software product lines from Novell are DR DOS and NetWare. DR DOS version 6.0 is the most recent version of DR DOS. NetWare Lite, introduced in 1991, is used with smaller networks.

Reorganizing Into Groups

With success comes change. In 1992 Novell changed its company structure by splitting into business groups: the NetWare systems group, the Desktop systems group and the Interoperability systems group. Each group is further broken down into multiple divisions that concentrate on specific products. Each group has a different mission according to what products it specializes in.

The NetWare systems group develops the core NetWare operating system and its printing and directory services, which the other groups will build upon. The Desktop systems group incorporates NetWare network functionality into desktop operating systems. Members of this group work with experts from companies that develop desktop operating systems, such as Microsoft Corp. The Interoperability systems group works toward connecting desktop and server technology. For example, this group provides the technology for such message systems as electronic mail. This is a method of transmitting messages over a computer network. Electronic mail can be used on local-area networks or larger networks to let users communicate by sending and receiving messages.

Specialized business units mean more extensive research of each individual product. But what else lead Novell to reorganization? Young says there were two reasons. First, the idea was to group different products into appropriate systems to provide a more specific focus and more concrete objectives. The second reason, he says, is accountability.

"Each of these business units has a general manager, picked by Ray," Young says. "That general manager is responsible for revenue generation as well as product direction and the success of that segment of the market."

The three people selected by Noorda to head the business groups have his confidence, and plenty of experience to back it. Jan Newman is the NetWare systems group general manager. Newman has worked in several different parts of the company, from system test organization to customer service. After customer service, Newman was in charge of engineering for the NetWare group.

"As general manager of the NetWare systems group," Young says, "Jan has seen several different aspects of the company. He has a very balanced view of what it takes to run the business."

The general manager of the Desktop systems group, John Edwards, began in marketing organization for the NetWare products division. He understands the NetWare side of the business as well as the desktop side. Young says this experience helps Edwards understand what makes Novell successful.

Kanwal Rekhi is in charge of the Interoperability systems group. As former president of Excelan Inc., Rekhi has the experience of actually running a company. At Novell, Rekhi was also in control of development at one time. Once again, Young says, Rekhi has the balanced perspective that is necessary to manage a business unit.

Hand-picked by Noorda, these three individuals have seen several sides of Novell and are familiar with the company's attitudes and techniques. But all techniques aside, attitude is an important part of a company that comes out in everything that company produces. The attitudes and philosophies at Novell are, in many ways, directed by Noorda.

The NetWare family of products from Novell is a well-known and growing product line that has something to offer for every type of computer network user.

Novell's Philosophy

Noorda has been at Novell for almost a decade, and his leadership abilities have proven to be successful.

"He really knows how to move us forward and it's shown by the success that we've had," Young says. But if there is one philosophy that runs throughout the entire company, he says, it is what Noorda calls his "five E's". They are excitement, enthusiasm, exuberance, euphoria and extinction.

These five things happen in order, Young says. First, you start to get excited about the things you are doing within your company--the products and technologies you are developing. Next you become enthusiastic because the process is moving along successfully. Exuberance is a more intense feeling of satisfaction. But once you reach euphoria, where you feel as if nothing can go wrong, step five--extinction--automatically ensues.

According to Young, Noorda feels that when things are going well, you should not get too comfortable or let success go to your head. "We need to keep our feet on the ground and stay focused on improving our products and service," Young says.

It's obvious that this humble attitude has accomplished quite a bit for Novell. But even though Novell is a profitable company, that humbleness shows on the surface as well. The facilities are very basic, Young says.

"We don't have oak desks and cherry wood cabinets," Young says. "Ray doesn't even have a window in his office." Novell is not out spending all of its profits and Young says that reflects Noorda's desire to make sure the company doesn't get caught up in its success, but instead keeps pressing forward.

Young cites Drew Major, the chief scientist at Novell, as an example of Novell's simplicity. Just looking at him, he says, you would never know that he is "the most notable network genius in the world".

"He's a very simple, friendly, down-to-earth kind of guy," Young says of Major. "That's just kind of how we are around here."

Another trademark of Novell, Young says, is its "melting pot" effect. The company draws people from all over the world. He says its variety in staff background makes it the melting pot of the computer industry. Young says that people come together from different parts of the world and generate new ideas and different perspectives.

"It's probably one of the keys to our success," he says.

The Future. . . Building On The Past

Success seems to be a running theme at Novell, and the plan is to stay on that track.

"I think you will see us very much stay the course of technology leadership," Young says. "We are very driven to that and think we have more expertise in the area of networking than anyone, so we are going to keep driving that forward."

Again staying with the tried and true methods, Novell plans to continue to pursue partnerships. Sharing technologies has brought Novell to where it is today. After all, Novell began with Noorda sharing his expertise back when NDSI was a struggling company. But those days have long since passed. Now, Young says, you hear people saying that Novell showed that it could make it through the tough times and establish itself.

"We don't have many people betting against us these days," Young says. "Now I guess it's up to us to live up to those expectations."

by Jennifer Larson