Monday, Glenn Ricart talked about where we're going as a company from a technology perspective ... and how we're getting there.

Bob announced our partnerships with SUN Microsystems and Open Market which have the potential to make money for everyone in this room ... and you'll see why in a few minutes.

He also talked about our market-focused approach to networking. And that we're focusing our efforts on three specific market segments:

... small businesses, ... distributed networks, ... and business solutions that leverage InTRAnet/Internet technology. Today, I want to show you how we're translating ... our market-focused approach, ... the work we're doing with partners, ... and the things we're doing with InTRAnets and the Internet, ... into complete networking solutions.

Most small businesses don't have IS departments ... many of them don't even have a qualified in-house network administrator.

They need networking solutions that are easy to install, maintain and use ... something that=s fully integrated and works right out of the box.

They need solutions that are stable and reliable.
They need a networking vendor they know will focus on their needs now and in the future.
And they need all that at a low price.

They need cost-effective ways to expand their presence ... to improve their ability to reach more customers... and to increase their overall visibility. They need anything that levels the playing field and improves their ability to compete with their larger competitors.

Let=s listen to one of our small customers talk about his networking needs.
[Video Roll: Santa Cruz Skateboards customer perspective]

The second market segment we're focusing on --- Distributed Enterprises --- has an expanded set of needs. Security, guaranteed reliability, and optimal performance ... often spanning many sites in different parts of the world.

They need advanced management tools and a comprehensive directory to organize information and networking resources.

They need an open environment ... one that can handle many different kinds of computers and incorporate a wide range of third-party hardware and software ... an environment where it's easier to find and access information on corporate networks... regardless of computer platform.

And our distributed customers are looking for ways to eliminate the hassles of building and maintaining wide area networks. Right now, they're simply too difficult and too expensive to build, maintain and manage.

I have one more short video clip that illustrates how a distributed enterprise leverages InTRAnet technology to merge two companies.

[Video Roll: Distributed enterprise perspective]

Like small companies, many distributed enterprises are looking at Internet technology for solutions. There's intense interest right now in using private InTRAnets to address many of these needs. But there are still pieces missing.

That's why our third area of focus is private InTRAnets and the Internet. We see a tremendous opportunity to bring the value of Internet technology to NetWare LANS... and to take the value of Novell networks to the Internet.

We see Internet technology as something we can leverage to meet emerging needs for all our customers... from small businesses with one NetWare server to giant distributed enterprises. There are 50 million NetWare users who want bring Internet technology to internal corporate networks. There are around 10 million registered Internet users who need Novell's network services on the Internet... services that will help solve the challenges today's Internet faces.

Bringing the advantages of the Internet to NetWare LANs:

• Makes it easy for companies to convert their NetWare networks into secure, reliable, manageable and high performance InTRAnets.
• Combines the incredible power of NDS with JAVA, web browsers and other technologies to take networking to a new level. The implications here are huge... I'll show you what I mean in a few minutes.

• Provides a robust multilevel security model for the Internet
• Provides guaranteed reliability and performance on the Internet
• Provides a comprehensive directory for the vast number of people, information and services available on the Internet.

Combining the best of NetWare with the best of the Internet gives us the opportunity to take networking to a whole new level... to create a new networking paradigm. It gives Novell the tremendous opportunity to meet the emerging customer needs I talked about earlier better than anyone in this industry.

Because no other company brings what we bring to the table. No one else has the experience, the installed base, the technology or the partnerships.

Maybe the best example of this is the exploding InTRAnet market. We have the tremendous opportunity to convert over 3 million NetWare LANs to corporate InTRAnets. No one else in the industry has this opportunity.

Building these inTRAnets is cost effective because customers are simply adding to their existing NetWare infrastructures. And they're fast, robust, reliable and secure because they leverage all the advantages of NetWare.

Our ability to combine the best of NetWare and the best of the Internet into complete solutions is real. We=ve put together three demos that integrate a number of products and technologies into solutions for small businesses... and distributed enterprises.

I want to mention that everything you'll see today is 100% live... Most of the featured products are available now... a few are in beta... but everything you'll see will be available by the end of this year.

I was going to start this first demo by Apretending that I forgot my slide show presentation... and then use a wondrous combination of Internet technology and Novell network services to save the day. But I figure that little gimmick would probably pale in comparison to being buzzed by a giant red ANetWare blimp...

So maybe I'll just show you how Novell technology, the Internet, and the work we're doing with partners come together in a great solution... I'd like to introduce Doc Hodges, who will help me with this first demo.

[Doc Hodges enters and sits at demo workstation #2.] [SM: Walks over to workstation #1 and sits]

Let=s take a look at how we've set up our first two demos... [SM walks through setup diagram]

My problem here is that I have a FileMaker Pro file I need to look at, but I don't have the software I need to run it. Normally, this would mean I'd have to find a software reseller, spend a few hours getting lost in an unfamiliar city, spend $100 or so on the software I need, install the software from floppies, and on and on. And I'd have to go through all that even if I never use that software again.

But with the Internet, Novell directory services, the NetWare application launcher and the kind of transaction processing services we'll provide this year with Open Market, life becomes a whole lot easier...
I need to load FileMaker Pro, but it's not loaded on my system. I'll go out on the network, find a software services company, and use GroupWise to e-mail a request to Arent the application.

[SM: Cuts URL and pastes into a GroupWise e-mail message and sends message. DH receives the message and talks through the steps and technology that enable Steve to rent the application. DH notes that the ability to mail a URL through GroupWise was developed in house... and is an example of a solution corporate developers can deliver. [DH: Notice that the NetWare applications launcher brings the application to Steve's desktop without him having to do anything... All drive mappings, changes to .in files, etc. are handled by NDS. Steve, why don't you hit F6 to bring up your NetWare tools... Also, it's important to note that the application is not resident on Steve's desktop. The icon points to an object in the directory...]

It extends NetWare network services -- in this case NDS and the NetWare application launcher -- to the Internet. Right now, these services are offered through NetWare Connect Service. In the future, we'll expand that to other public networks, including the Internet. It brings the power of the Internet browser to NetWare LAN users It leverages the work we're doing with partners... For example, open Market provides the transaction processing services needed to make this solution real. And this same solution means all of you can actually get paid for JAVA applets you develop and make available on the Internet... It provides solutions that meet needs in the market segments we're focusing on. Small businesses can access the software they need without buying it all themselves. Small ISVs can Aappear larger by selling, renting or distributing software solutions on public networks. And distributed enterprises can use this kind of solution to distribute and track software usage over company inTRAnets.

But if you move those same capabilities to a private InTRAnet setting, you have an accounting tool... a great solution for tracking and controlling costs within a company.

Now let's look at another solution that has even greater implications for the exploding InTRAnet market. You'll see the huge benefits of combining NDS and Internet browser technology.

The setup here is the same as the first demo I showed you. [SM reviews demo setup]
[SM: Walks over to demo station and pulls up a WordPerfect document. Explains how with WordPerfect's Internet publishing tool, he can create a normal WordPerfect document, save it as an HTML document on Novell's Web Server, and have that document become part of the company's InTRAnet. SM saves document.
[DH opens Netscape, clicks on a bookmark and brings the document into NetScape. SM makes a change to the WP document and re-saves it. DH reloads the page and the change is reflected.]
It's that easy to create and publish documents on an InTRAnet with a NetWare foundation.
But adding NDS to the mix adds another level of functionality...
[SM: Returns to WordPerfect document]
Notice the hypertext link at the bottom of my screen. When I click on the link in WordPerfect, you'll see an address referencing NDS... Doc, why don't you tell us what that means...
[DH clicks on link and goes to a page with information about SM with his picture. DH explains how this page is automatically created using the information from Steve's object in the directory. DH goes in and changes some information in Steve's directory object, reloads the Web page, and the change is reflected.]

But what would happen if you... as corporate developers... could write applets that leverage NDS and the capabilities of your Web browser.

On Monday, Eric Schmidt told you that HTML documents are dead... the information on a traditional Web page is static. JAVA changes that... It brings information to life. And the work we're doing with JAVA means you'll have the ability to bring the data on corporate InTRAnets to life. With JAVA, Doc won't have to reload the Web page to see the changes he made in the directory.

Here's an example... Picture a page similar to the one you see now. But instead of just pulling information from the directory and creating a web page, you could have a link saying, Aclick here to access sales information. Clicking on the link would activate a JAVA applet. The applet would ask the user to specify what kinds of information they need from the corporate sales database, search the database for the requested information, collate and organize the information, create the most useful chart or graph, and display the information for the user in the requested format.

Not only can you automatically access and display NDS information on your company's InTRAnet, but you can write applets that make NDS objects come to life.

That=s what this agreement on JAVA... and our announcement to add Visual Basic objects to Net2000... are all about. And we're bringing it to you this year.

I've just given you one simple example. But I hope you can see the enormous potential here. We're giving you the ability to create InTRAnet solutions that tie directly into NDS... and leverage the full power of the industry's hottest programming tools.

Distributed enterprises can organize and secure information with NDS, manipulate and format information with applets that access the directory, and present the information on a company InTRAnet.

Again, we're the only company that can bring you these kinds of capabilities.

I'll need to enlist the help of one the most talented and hard working members of my team, Brad Turner. I'll just walk over and give Brad a call on this phone right here...

[SM walks to phone and calls BT. A handi-cam shows BT laying on a couch backstage, fast asleep, with a ski magazine open on his chest and a can of JOLT Cola in one hand. When the phone rings, BT jumps out of the chair and answers the phone.]
SM: Hey Brad, how's everything going... I think I want to make a few changes to that white paper you've been working on. Can we do that now?
BT: [Groggily] Now??? Well sure, I'll log into the network. Why don't you set up the conference and call me when you're ready.
[BT hangs up.]
SM: Now, I'll use NetWare Mobile to connect to the network. While I'm doing that, Doc's going to talk a little about some of the benefits.
DH: [Covers the following points:]

• Location Manager - Consistant network view regardless of location
• Universal Dialer - Common dialer for all client pieces
• File caching - Makes it easy for you to take files with you when you go mobile.
• Directory synchronization - Automatically updates files when you connect. Delta synchronization only changes parts of the file that change.

There=s certainly nothing that new or exciting about a ProShare document conference over a hard wired connection, even if it is remote... So let's make things a little more interesting.

[Speaks into phone to Brad]
Brad, are you still there? There are a few people sitting in the audience I want to get feedback from... Can you get them involved in the conference?

BT: You want me to involve people sitting in the audience...

[BT explains Mobile IPX's ability go switch from a hard-wired to a wireless connection without interrupting the flow of data. BT unplugs his workstation and with the conference still in progress, walks into the audience while making changes. A handi-cam follows BT and projects what's happening on his screen. The changes made on Steve's workstation are reflected on BT's laptop. BT sits in the audience.]

BT: Hey Steve, I think they like it. Back to you...

Thank you, Brad. How's that for anytime, anyplace connectivity!

Last year at Brainshare, you heard a lot of talk about our vision for pervasive computing... the idea of connecting people and making it possible for them to access information and collaborate anytime, from anyplace. You can see we're making real progress.

This solution was different than the first two I showed you, but the concepts are the same.Brad and I showed you another complete networking solution that uses a range of Novell products... and interacts with our partners products.

• NDS made it possible for me to find Brad on the network, authenticate myself and establish a connection.
• NetWare Mobile allowed me to easily set up a remote conference.
• Mobile IPX enabled Brad to switch seamlessly between a hard-wired and wireless connection.
• In the real world, a secure public network service like NCS provides a secure, reliable channel for our document conference.

Extending the advantages of NetWare to the Internet, and bringing the advantages of the Internet to NetWare networks is really the key to building the smart global network you've heard about all week.

I hope the things you've seen today... and this week... have sparked your imaginations and stimulated your creativity. I showed you a couple of basic examples of what's possible... I'm sure you have even better ideas for adding additional value to the solutions we'll provide... or creating new solutions that combine the work you're doing with our efforts... or for bringing these kinds of solutions to your customers.

Our partnership with SUN, our efforts to use standard interfaces through Net2000, and our efforts to support you with better SDKs and more responsive developer programs will help you develop a new breed of client-network solutions based on NetWare.

And the best is yet to come. You'll see more key partnerships, more complete networking solutions, more developer tools and better developer support. Look closely for more exciting partnership announcements in the very near future...

Novell created the LAN market. We extended that market by interconnecting NetWare LANs over wide area networks. With the Web Server and Netscape browser, we have turned these interconnected LANs into an InTRAnet. And we have shown you how we're taking the next step of adding new web services to the InTRAnet with Open Market, GroupWise and JAVA-based services.

All of these technologies can be leveraged into Internet solutions as well. So we're just evolving our network services to take advantage of huge growth markets. And that represents a huge opportunity for your growth as well.

Today, I've showed you complete solutions based on real Novell technology. One year from now, when you return to Salt Lake for Brainshare >97, I'll be anxious to talk to you about the things you're doing... How you're meeting real needs... how you're leveraging Novell technology and the Internet to bring amazing new networking solutions to your customers.

• Have a great year! I'll see you in '97.