Press Release

Novell's GroupWise Provides Lowest Cost of Ownership Among Leading Groupware Packages

GartnerGroup Study Reveals GroupWise Costs significantly Less to Operate than Lotus Notes, Microsoft Exchange and Netscape SuiteSpot

PROVO, Utah -- January 21, 1998 -- Novell, Inc. today announced that a recent independent GartnerGroup study reported total cost of ownership for customers using Novell's GroupWise™ is far lower than for customers using Lotus Notes or Microsoft Exchange. In the study, sponsored jointly by IBM, Microsoft, Netscape, Novell and Oracle, the intranet/workgroup computing solutions of over 300 companies were evaluated on a cost-per-user basis for the planning, implementation and operation of each solution. GroupWise was determined to be the least costly overall of all the solutions reviewed. GartnerGroup's Management Summary on this study can be found at www.novell.com/groupwise.

The GartnerGroup study, which examined costs on a three-year basis, reported the cost-per-user for this time period for GroupWise was $136.00; whereas the cost-per-user for Exchange was over three times higher at $486.00, and Notes was over five times higher at $719.00.

"GartnerGroup's acknowledgment of GroupWise as the industry's lowest cost-per-user collaboration solution validates Novell's overall commitment to reducing the total cost of network ownership through all of its products and services," said Paul Smart, vice president of Novell's Collaboration Services Group. "If you break down the cost-per-user numbers on a yearly basis, GroupWise comes out at a mere $45.00 per year, per user. Compared with $162.00 for Exchange and $240.00 for Notes, GroupWise offers significant cost savings for a company."

The study also reported that the operation costs for Lotus Notes and Microsoft Exchange were nine and 10 times higher respectively than GroupWise. Operating costs, unlike planning and implementation costs, recur every year over the life of a product and account for the largest portion of the total cost of Intranet/workgroup computing solutions. The strong performance of GroupWise in operating costs further increases the cost-per-user gap between GroupWise and the other solutions reviewed. The operating cost- per-user for GroupWise was $36; whereas cost-per-user for Lotus Notes was $390, $330 for Microsoft Exchange and $144 for Netscape SuiteSpot.

Ease-of-use and directory-enabled technology are key factors in keeping GroupWise operating costs notably low. GroupWise allows users to perform workflow, document management, scheduling and calendaring tasks within a consistent, familiar E-mail environment, which in turn, reduces training costs. GroupWise is also able to significantly reduce the cost of using groupware by leveraging the power of Novell Directory Services™ (NDS™). NDS-enabled GroupWise diminishes costs of operation by providing network administrators single-point administration and by eliminating redundant collaborative system maintenance and administration.

"Network administrators are faced with the often difficult task of improving efficiency through technology, as well as ensuring the company's technology investments remain within budget parameters. GroupWise provides businesses with a collaborative software solution that addresses both benefit and budget concerns," said Smart.

"The ability to install and operate business critical-workgroup solutions efficiently is a pivotal success factor for businesses of all sizes," said Peter H. Janak, vice president and chief information officer, TRW. "GroupWise successfully provides Novell's customers with the lowest cost-per-user solution in a very competitive market."

About GroupWise

GroupWise 5.2 offers cross-platform, expanded E-mail solutions, including full document management and automated workflow capabilities, as part of its Universal Mailbox. The Universal Mailbox provides users with single-point access to personal calendaring, group scheduling, tasks, voice mail, facsimiles, documents and other message types both from the desktop and via the Internet using GroupWise WebAccess™. GroupWise 5.2 also includes the ability to scan and store images and the freedom of remote access via the telephone.

GroupWise 5.2 natively supports open Internet standards such as TCP/IP, HTTP, HTML, SMTP/MIME, LDAP, IMAP4 and POP3, with support for NNTP and S/MIME due shortly. This combination of Internet support and rich functionality makes GroupWise the first of a new breed of expanded E mail systems to offer intranet-ready collaboration and full functionality out of the box.

About Novell

Founded in 1983, Novell (NASDAQ: NOVL) is the world's leading provider of network software. The company offers a wide range of network solutions for distributed network, Internet, intranet and small- business markets. Novell education and technical support programs are the most comprehensive in the network computing industry. Information about Novell's complete range of products and services can be accessed on the World Wide Web at http://www.novell.com.

Novell is a registered trademark. GroupWise, GroupWise WebAccess, NDS and Novell Directory Services are trademarks of Novell, Inc. All other registered trademarks and trademarks are the property of their respective holders.

Press Contacts:
Meghan O'Leary
Cunningham Communication, Inc.
Phone: (650) 858-3765
Internet: moleary@ccipr.com

Shannon Harmon
Novell, Inc.
Phone: (801) 228-5126
Internet: smharmon@novell.com