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Novell Network Solutions Cut Costs, Improve Productivity, Deliver Dramatic Return-on-Investment According to IDC
NetWare 4.1 Up to 22 Percent Less Expensive to Use than NT Server; GroupWise Offers Typical ROI of 334 Percent; ManageWise Pays for Itself in 20 Days NETWORLD+INTEROP, Las Vegas -- April 3, 1996 -- Novell, Inc. today announced the results of return-on-investment (ROI) research it sponsored from International Data Corporation (IDC) concluding that Novell's NetWare® 4.1 is up to 22 percent less expensive to use than Microsoft Windows NT Server. In addition, the research demonstrated significant productivity improvements and cost reductions achieved through business use of Novell's ManageWise® and GroupWise® products and concluded that cost savings can be compounded when these products and NetWare 4.1 are used together. Highlights of the research, which included extensive interviews with businesses ranging from small companies to global enterprises, show that surveyed companies plan to increase their NetWare 4.1 server licenses by 258 percent in the next 12 months, compared with a 55 percent increase for NT Server licenses. In its analysis of groupware solutions, IDC concluded that Novell's GroupWise generated a typical annual return of 334 percent per user. And, as part of its study of advanced system management tools, IDC found that ManageWise paid for itself through increased productivity and decreased network downtime in an average of 20 days. Novell also today announced the availability of the Novell Business Advisor, an ROI tool that enables businesses to easily quantify the return-on-investment they can generate from implementing NetWare 4.1, GroupWise and ManageWise solutions. As part of its efforts to help businesses quantify the return-on-investment from a total Novell solution--including the ROI benefits of technology education and training--Novell also this week announced the availability of the Novell Authorized CNE Advisor, the first ROI tool to quantify organizations' investments in vendor technical certifications. "Novell has clearly taken a leading role in delivering network solutions that maximize return-on-investment," said Lee Doyle, vice president, local area networks and data communications, at IDC. "As networked applications continue to grow and networks get bigger and more complex, technology managers must relentlessly optimize, integrate and upgrade existing systems in order to stay ahead of the game. Our research shows that Novell's NetWare 4.1, GroupWise and ManageWise solutions can help them do this." "Our Novell network solution translates into measurable improvements on our company's bottom line," said Paul Scholes, LAN Systems Manager at Farmland Foods. "Farmland Foods' profitability depends on our employees being able to communicate and collaborate, on the tools and information they need to do their jobs being always available, and on our network being cost-effective and easy to administer. Novell's NetWare 4.1, GroupWise and ManageWise answer those requirements better than any other network solution available. We're not only getting great technology, but a real solution to real business needs."
NetWare 4.1 Leads Market in Cost-Efficiency The results of IDC's "cost-to-use" study of NetWare 4.1 show that: * NetWare 4.1 costs less to use than Windows NT Server. NetWare 4.1 costs from 7 to 22percent less to use than NT Server, primarily because NetWare 4.1 requires 13 to 30 percent fewer people to manage the network. Additionally, NT Server costs from 10 to 35 percent more than NetWare 4.1 in initial implementation costs, which include the costs of hardware, software and labor. The higher costs for NT Server were driven by the need for additional servers (lower performance per server) as well as additional time needed for software configuration. * NetWare 4.1's performance, capacity and centralized administration translate into measurable cost savings. The centralized network administration provided by Novell Directory Services® (NDS®), the industry-standard directory that ships with NetWare 4.1, results in an overall lower cost of network administration. IDC reports that surveyed LAN managers are seeing "remarkable" improvements in managing their networks under NetWare 4.1: Although companies expected the number of nodes on their networks to grow by 260 percent in the next 12 months, they expected the number of servers on the network to grow by only 163 percent--an improvement of 50 percent. * NetWare 4.1 leads the market in worldwide licenses shipped, with strong growth anticipated through the end of the century. Independent IDC research shows that NetWare 4.1 surpassed NetWare 3 in network operating system license sales by the third quarter of 1995, making it the number one network operating system. Additionally, companies surveyed by IDC reported high levels of satisfaction with NetWare 4.1, and felt that it had made "major contributions" to network productivity. These companies reported that while 51 percent of their desktops were connected to NetWare 4.1, they anticipate expanding to 83 percent over the next 12 months.
ManageWise Maximizes Return on Network Investments IDC's ROI study of ManageWise shows that: * ManageWise dramatically reduces management costs for large and small NetWare networks. Companies surveyed by IDC reported that the implementation of ManageWise saved them almost $1,000 a year per employee by decreasing network downtime, reducing network management and administration costs, and increasing the number of users a single PC staff person can support. * ManageWise enables companies to manage more with the same number of people. The IDC research shows that on average, companies using ManageWise realize a 35 percent improvement in network manager efficiency. With ManageWise deployed, a network staff person can support 25 percent more desktops and 33 percent more servers, and can decrease travel costs by 50 percent. * ManageWise is an affordable management solution that pays for itself in weeks. IDC research shows that the cost to implement ManageWise is repaid through cost savings in an average of 20 days. Customers' overall return on investment was 157 percent per 100 managed users. GroupWise Dramatically Increases Corporate Productivity IDC's research on the bottom-line impact of groupware applications shows that: * Organizations that implement GroupWise experience a typical annual return of 334 percent per user. For every GroupWise customer interviewed by IDC, return on investment exceeded expectations. NordicTrack, for example, saw a first year return per user of more than three and a half times first year costs. * GroupWise improves individual and workgroup productivity at an incremental cost. At Sheppard, Mullin, Richter and Hampton, a law firm in Los Angeles, GroupWise cut the time needed to set up meetings by 25 hours per week, enabled assistants to support three lawyers instead of two, and saved $16,000 per year in courier costs. Farmland Foods saved nearly $400,000 in communications costs per year. On average, GroupWise paid for itself in only 3.3 months. * GroupWise multiplies the returns from existing hardware and software investments. The IDC research indicates improved productivity and reduced administration and management costs as a result of the linkages and common components between GroupWise, NetWare, ManageWise and desktop software. Novell Business Advisor Provides Financial Facts To help customers implement network solutions in the most profitable way for their situation, Novell has created the Novell Business Advisor. The Novell Business Advisor contains information and tools that offer objective feedback to businesses making technology purchasing decisions. For instance, using the Novell Business Advisor customers can compare the ROI generated from a move to NetWare 4.1 against the ROI expected from a move to competitive network operating systems. The Novell Business Advisor also allows customers to analyze the costs and benefits of implementing GroupWise and to quantify the benefits ManageWise can provide in reducing management, administration and downtime costs. Availability of ROI Research, Novell Business Advisor and Novell CNE Advisor The ROI research conducted by IDC and sponsored by Novell is presented in four white papers: * Novell GroupWise: Leveraging Desktop and Network Investments * Novell NetWare 4.1: Reducing Cost of Ownership * Novell ManageWise: Maximizing Returns on Networking Investments * Maximizing Return-on-Investment of Network Computing (a summary of the preceding three white papers) For copies of these white papers and a copy of the Novell Business Advisor, customers can call 1-800-665-4586 or visit Novell's web site (http://www.roi.novell.com). The Novell Authorized CNE Advisor, which lets businesses quantify the value of investing in Novell's CNE, Master CNE and Certified Novell Administrator (CNA) certifications, can be downloaded from the Novell Education web site (http://education.novell.com). International Data Corporation is the world's leading provider of information, technology, data, analysis and consulting. IDC has research centers in 40 countries and more than 300 research analysts worldwide; it is a subsidiary of International Data Group, the world's largestpublisher of computer'related information. Novell, Inc. (NASDAQ:NOVL), is the world's leading networking software provider. Novell software provides the infrastructure for a networked world, enabling 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 part of their everyday lives. Novell and NetWare are registered trademarks and GroupWise, ManageWise, NDS, NetWare 4 and Novell Directory Services are trademarks of Novell, Inc. All other trademarks are the property of their respective owners.
Press contacts:
Hank Heilesen
Deena Monchick
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