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NetWare 4.1 Fuels Novell's Most Successful Year of NetWare Sales NetWare 4.1 Unit Sales Up 300 Percent in FY95; IDC Research Shows NetWare Outships MS Windows NT Server by 4-to-1 Margin -December 14, 1995-Provo, UT-Novell today announced that in the company's fiscal year 1995-a year in which Novell shipped more NetWare® than at any other time in its history-the company's NetWare revenue grew to a record $1.033 billion, based primarily on the strength of NetWare 4.1. Novell shipped more than 700,000 NetWare server licenses in FY95, with NetWare 4.1 accounting for approximately 40 percent of those shipments. This rapid growth in NetWare 4.1 deployment drove a year-over-year increase in NetWare 4.1 server license sales of more than 300 percent. Sales of upgrades to NetWare 4.1 from previous versions of NetWare grew nearly 400 percent. By the end of fiscal 1995, more than half of Novell's NetWare shipments were NetWare 4.1. "We set out at the beginning of the year with a very clear objective: to see NetWare 4 outship NetWare 3 by the end of fiscal 1995. Not only did we meet this goal, but along the way we shipped more NetWare than ever before," said Richard King, executive vice president of Novell's Systems Group. "By all indications the trend toward NetWare 4 continues to accelerate. NetWare 4 will represent the great majority of Novell's NetWare shipments in 1996, and we believe it will continue to lead the entire industry as the best-selling network operating system worldwide." The network platform and services provided by NetWare 4.1 are Novell's foundation for a Smart Global Network that provides a single environment that integrates the heterogenous computing platforms in use today, giving people simple, seamless access to the information they need from wherever they are. NetWare 4.1 sales increased across the board in FY95. Customer adoption of NetWare 4.1 increased Novell Customer Connections major account licensing and OEM sales during the year to approximately $200 million. Major account licensing of NetWare was up 60 percent over 1994, with NetWare 4.1 accounting for 87 percent of this business. The Novell Customer Connections program for major accounts provides flexible volume licensing of NetWare from Novell and channel partners. Other Novell networking software that leverages NetWare achieved important market milestones in the year. On the strength of channel support and major account wins, GroupWise was Novell's fastest growing product family for most of 1995, as its installed base moved beyond 5 million. Growth this year in ManageWise network management software has taken Novell to the number one position in the PC LAN management software market. TUXEDO, the open transaction processing monitor, almost doubled its market presence in 1995 and solidified its position as the market share leader for these systems. Recent research from International Data Corporation, a market analyst firm based in Framingham, Mass., shows that Novell remains the leading network operating system vendor. In the first nine months of 1995-a year in which IDC expected the network operating system market to grow by 25 percent in server licenses-IDC research shows that NetWare outshipped all other network operating systems combined by nearly a 2-to-1 margin. NetWare outshipped Microsoft Windows NT Server in the network operating system category by more than a 4-to-1 margin. According to IDC, by the end of Q395 NetWare maintained a 64 percent market share for network operating systems, compared to 6 percent market share for MS Windows NT Server in the same category. In a study of all server operating systems-which includes UNIX and PC LAN application servers as well as network operating systems-NetWare maintains a 52.2 percent market share in installed base, more than all varieties of UNIX combined. Microsoft holds a 6.3 percent installed base in this arena, which includes MS Windows NT Server (both as a file and application server) and Windows for Workgroups. Through 1999, IDC predicts that "Novell will remain the leading network OS vendor and will successfully upgrade a large portion of its installed base to NetWare 4.x . . . " (PC LAN Operating Systems, IDC, September 1995). "We're very pleased that Novell's continued market leadership, the continued growth of NetWare and the importance of NetWare Directory Services™ are being recognized by the leading market analysts," said Richard King. For example, in a recent Workgroup Computing Strategies brief (Novell Nouveau: Part 1, Nov. 17, 1995) the META Group projects that Novell's network strategy will enable it to maintain a 65- to 70 percent share of the network operating system market. META, a market analyst firm based in Stamford, Conn., sees directories becoming the defining factor in companies' NOS buying decisions and sees Novell's directory, NetWare Directory Services (NDS™), as NetWare's key strength: "Novell is first to the market with its directory product . . . and there is significant potential for NDS to become as dominant as the NetWare NOS." Additionally, Forrester Research, in a Nov. 7, 1995, Forrester Brief titled "NetWare or NT?" states that "Novell will remain the dominant provider of network operating systems . . . " A market analyst firm based in Cambridge, Mass., Forrester also sees NDS as NetWare's key advantage: "NetWare 4.1 provides the next generation of network services with NetWare Directory Services as the linchpin. NDS is the brains behind NetWare . . . Since NDS is extensible, new applications can plug into the network, leverage existing directory information, and be managed through the same set of tools that manage NetWare." Forrester cites four additional Novell strengths that will enable it to continue to lead the NOS market: installed base, untapped technology such as Novell Tuxedo, superior network management, and partnerships. While Forrester sees Microsoft Windows NT becoming a critical applications platform, it concludes that "Microsoft's ability to enable a distributed environment through NT is far behind Novell's . . . " NetWare Directory Services provides the most reliable, secure and widely used directory service available today. NDS turns a multiserver network into a single, integrated information system that is easier to access, easier to administer, and less expensive to own, operate and maintain. NDS gives users a single point of access to all network information and resources they need. It gives administrators a single point of administration for the entire network, saving companies time and money. Currently more than 130 third-party applications-including messaging, management, telephony, imaging and backup solutions-take advantage of NDS, making it the directory with the most ISV support in the industry. Based on the strength of NetWare Directory Services, PC Magazine awarded NetWare 4.1 its Editor's Choice for network operating systems (May 30, 1995) over Microsoft NT Server, IBM OS/2 LAN Server and Banyan VINES. In all NetWare 4.1 has won 12 top product awards given by industry publications over the past year, including awards determined on technical merit (InfoWorld Test Center award, March 20, 1995), awards chosen by resellers (Best Enterprise NOS, Best Departmental NOS and Best Overall Product of the Year, Network VAR, September 1995), and awards chosen by customers (Infoworld Reader's Choice award, March 20, 1995). In 1995, three-quarters of a million people were trained on NetWare and Novell products at more than 1,400 Novell Authorized Education Centers (NAECs) worldwide. Over the past three months more than 30,000 people have attended the NetWare 4.1 First Class event-a special one-day training course on NetWare 4.1-with another 5,000 to 8,000 people expected to attend before this special training event ends in December. Seventy-five thousand Certified Novell Engineers (CNEs) and 75,000 Certified Novell Administrators (CNAs) support NetWare worldwide. Novell (NASDAQ: NOVL) is the world's leading network software provider. Novell software provides the infrastructure for a networked world, enabling our customers to connect with other people and the information they need, anytime and anyplace. Novell partners with other technology and market leaders to help customers make networks a part of their everyday lives. Novell, NetWare and Tuxedo are registered trademarks and GroupWise, ManageWise, NetWare Directory Services and NDS are trademarks of Novell, Inc. All other marks are the property of their respective owners.
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