Standard security algorithms and well-established obfuscation methods are used in the Novell Server Consolidation Utility to protect the privacy of administrator passwords.
In a secure environment, you should not use the server-based processing feature. The XML script that is generated contains the administrator passwords in obfuscated form. Although the passwords are not written to the file in clear text, a knowledgeable hacker could derive the passwords from the obfuscated versions. For more information, see Section 6.12, Server-Based Processing.