|
|
|
|
 |
BusinessWeek: January 11, 1993 |
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |
|
Top of the News
A NOVELL APPROACH FOR STRIKING AT MICROSOFT Raymond J. Noorda's pending acquisition of Unix Systems Laboratories Inc. is more than just his company's biggest deal ever. The Novell Inc. chairman's Dec. 21 move to purchase the American Telephone & Telegraph Co. unit for $350 million in newly issued stock also is aimed squarely at blocking Novell archrival Microsoft Corp. from thoroughly dominating the future of software. "There's a concern that it will be too hard for everyone else to compete," Noorda says. Indeed, Noorda figures that the deal gives him a shot at gaining control of the next generation of desktop software--a market most of the industry thought Microsoft was a sure bet to lock up (chart). As personal computers increasingly are linked on corporate networks, consumers will need basic software that's far more sophisticated than Microsoft's Windows and MS-DOS operating system--the current PC standard. To grab those buyers, Microsoft is working furiously on advanced software called Windows New Technology (NT), due out in April. Microsoft expects to sell 1 million copies in its first year, which could give the company even tighter control over software pricing and innovation and bring it a big advantage in selling its own applications programs. Novell's deal doesn't worry Microsoft, says Executive Vice-President Steven Ballmer. The acquisition "has the potential to mess Novell up," Ballmer adds, noting that Novell now has to deal with different sets of incompatible software. TINKER TOY. Noorda is betting on a software system with a rocky history. Created by AT&T in the late 1960s, Unix became popular among academics and scientists because it's powerful and can be adapted to many sorts of computers. But all that adaptation has spawned multiple versions of Unix, hampering sales in the commercial market, where compatibility counts. Some computer makers, meanwhile, have been reluctant to standardize on AT&T's version of the program, fearing that it would give AT&T a leg up in computers. Those worries now are moot, since Novell doesn't sell computers. Could a standard Unix finally take off? "The chances have never been better," says Willem P. Roelandts, a vice-president at Hewlett-Packard Co., one of the dozens of companies that pay royalties to Unix Systems Labs for use of the program. Then again, workstation supplier Sun Microsystems Inc., HP, and others will continue to sell rival versions of Unix. The real test will be whether Novell can successfully combine Unix with its popular NetWare software for linking computers. Thanks to NetWare, Novell has grown into the No.2 supplier of PC software, behind Microsoft, with $933 million in sales last year. In the future, features that allow co-workers to share information across far-flung networks will be among the most-valued elements of advanced operating systems. Since Microsoft has decided to build such features into Windows NT, Noorda says Novell must find ways to meld Unix marketing and development with NetWare. GRANDDADDY. Noorda also clearly intends to trade on anti-Microsoft sentiment as a way to galvanize support for his version of Unix. The 69-year-old former U.S. Navy pilot has become the grandfatherly figure of the industry, successfully forging alliances with such key players as Borland, Lotus Development, and WordPerfect. Since Noorda forswears getting into the applications business, software executives say they feel safer trading technical information with Novell than with Microsoft. Noorda may be fighting Microsoft on other fronts. He is thought to have been a key source in the 2 1/2-year probe by the Federal Trade Commission into complaints of Microsoft's hyperaggressive tactics. And he acknowledges that some Novell executives may be building support for a civil antitrust action against Microsoft. The idea: to bring suit against Microsoft for the practices being probed by the FTC. "I can't say that someone else inside the company hasn't contacted outsiders for exploratory purposes," says Noorda. But the immediate battle seems to be taking shape not in the courtroom, but in the marketplace. | |
|
|
|
|
|
Copyright 1991-2009 by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
