Press Release

Novell's NetWare 4.1 Market Share Rises in First Quarter

IDC Research Shows Increase at the Expense of Windows NT, LAN Server as NetWare 4 Continues to Gain Momentum with Major Accounts

OREM, Utah -- June 25, 1996 -- Novell, Inc. announced today that NetWare® 4.1, its industry-leading network operating system (NOS), gained market share in the first quarter of 1996 at the expense of Microsoft Windows NT and IBM LAN Server, according to International Data Corporation (IDC) research analyzing first quarter server operating system (SOS) market trends. NetWare 4 increased its lead in the SOS market by four points, while Windows NT Server and LAN Server together lost more than five points. NetWare 4 server shipments increased more than 18 percent over the fourth quarter of 1995, in contrast to Windows NT's 7.5 percent decline in file server shipments.

According to IDC, NetWare 4 shipments increased in every region worldwide in the first quarter, while Microsoft sales declined in regions outside the U.S. "NetWare 4 showed strong growth in the first quarter, despite a slight drop in worldwide server demand," said Lee Doyle, vice president of local area networks and data communications at IDC, a leading market research firm. "NetWare 4's momentum is driven in part by customers' demand for Novell Directory Services™ (NDS™), a key component of NetWare 4 that simplifies network access and administration. NDS provides leading directory services for distributed networks."

NetWare 4 continues to be a strategic NOS platform of choice in a broad spectrum of industries, for leading organizations such as the following:

  • Banking: Citicorp, U.S. Bank
  • Education: Loyola University, University of Southern California
  • Finance: Booz-Allen& Hamilton
  • Healthcare: Johnson& Johnson, Kaiser Foundation Health Plan
  • Insurance: Aetna Life& Casualty, Blue Cross Blue Shield, State Farm
  • Oil and Gas: Amoco, Mobil Oil
  • Telecommunications: MCI

NetWare Momentum

NetWare 4 momentum continued in Novell's second fiscal quarter of 1996, as major account sales increased 133 percent over the same period last year. In recognition of NetWare's continued strength, Computer Reseller News recently named NetWare the NOS "Market Leader" for the second year in a row. Customers voted NetWare the top NOS in the 1996 LAN Times Readers' Choice Awards, and Novell's NetWare 4.1 SFT III server fault-tolerance solution recently won a PC Magazine "Editors' Choice" award.

"NetWare 4 market share continues to grow, evidence of the market's expanding confidence in Novell solutions to the business challenges our customers face, and in Novell's back-to-basics business focus," said William Donahoo, Novell senior director of product marketing. "Over 450 of the largest companies in the world, including Xerox Corporation, American Airlines, Nissan North America, Inc. and Bristol-Myers Squibb, are turning to NetWare 4.1 as the basis for their computer networks. Over 55 million users rely on Novell and NetWare to connect them to the networked information, resources and services they need, with less effort and expense."

Benefits of NetWare 4

Corporate enterprises choose NetWare for its ease of administration and use, return on investment, reliability and scalability. NetWare 4 enables companies to conduct their businesses more efficiently, productively and profitably by integrating their heterogeneous computing platforms into a single network environment for centralized administration and improved access to information and resources. NetWare 4's proven scalability enables companies to add as many users to a NetWare 4 server as the hardware can support, allowing rapid network growth while controlling server costs. NDS, Novell's industry-leading global directory that is built into NetWare 4.1, provides users with easy access to network information and resources from any location, and simplifies network management by providing a single point of administration for the entire network. With over 15 million users, NDS is the de facto industry-standard enterprise directory service.

"NetWare 4 with NDS improves our users' access to information and resources across the enterprise," said Dennis Olson, senior network systems analyst at Allen-Bradley, a Rockwell Automation business. "NDS provides our users transparent access to all resources worldwide to which they have rights with a single log-in, and enables us to administer a 100-server, 4,000-user network from a single central location."

Return on Investment

According to recent IDC research, Novell network solutions provide dramatic return on investment (ROI) through significant cost reductions and productivity improvements. NetWare 4.1 is up to 22 percent less expensive to use than Microsoft Windows NT, while NDS lowers total network cost of ownership by as much as 30 percent through elimination of redundant administration tasks. GroupWise™, Novell's messaging and group computing software, provides a typical ROI of 334 percent, while Novell's ManageWise™ network management solution pays for itself in 20 days. IDC concluded that these cost savings can be compounded when these products are used in combination.

"Farmland Foods' use of NetWare 4.1, GroupWise and ManageWise translates into a measurable improvement on our bottom line," said Paul Scholes, LAN Systems Manager at Farmland Foods, one of the nation's leading meat companies. "Our Novell network solution is more reliable, cost-effective and easy to administer than any other solution available. We depend on Novell to give our employees easy access to the information and resources they need to do their jobs, to enable them to collaborate and communicate more effectively, and to make the network easy to administer, manage and maintain."

Pricing and Availability

NetWare is available today worldwide through Novell resellers, as well as through Novell Customer Connection™, Novell's popular licensing program. For more information about NetWare 4 benefits, features and pricing or for the location of your local reseller call 1-800-NETWARE or visit Novell's World Wide Web site at http://www.netware.com [now www.novell.com/products/netware/].

Novell (NASDAQ:NOVL) is the world's leading network 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 a part of their everyday lives.

Novell and NetWare are registered trademarks, and GroupWise, ManageWise, Novell Directory Services, NDS, NetWare Loadable Module and NLM are trademarks of Novell, Inc. All other registered trademarks and trademarks are the property of their respective holders.

Press Contact:
Susan Rogers
Cunningham Communication, Inc.
(408) 764-0796
Internet: susanr@ccipr.com