> Novell doesn't need help from anyone, says Marengi. Instead, he will
> use the $1 billion left over from Novell's salad days to buy other
> companies and technologies.
This may account at least somewhat for Novell's recent generosity
with projects at universities (such as Infospheres).
In the rest of the article below, Jesse Berst says instead of investing
in (and in some cases buying) small projects and companies, Novell
should merge with Cisco as a route to return to its glory days. An
interesting thought if nothing else.
Adam
----------------------------8< --------------------------------------
Why $1B Isn't Enough to Save Novell
Jesse Berst, Editorial Director
ZDNet AnchorDesk
Monday, February 17, 1997
Pride goeth before a fall. Or, in Novell's case, after one.
Novell has fallen from its former spot as the leader of the networking
business. A few weeks ago I suggested a merger with Cisco was the best
way for Novell to return to glory. But when I took this suggestion to
Novell president Joe Marengi, he said pridefully that Novell could
recover without help. (For more on the reactions of Marengi and of Cisco
CEO John Chambers, read the articles linked at left.)
Novell doesn't need help from anyone, says Marengi. Instead, he will use
the $1 billion left over from Novell's salad days to buy other companies
and technologies.
I admire proud, self-reliant people, but Marengi's wrong. Novell doesn't
need to buy more technologies to squander. It isn't getting full value
from the ones it owns already.
Unfortunately, Novell and Marengi will have to be pushed before they do
the right thing. Several influential groups have taken up the hue and
are insisting the company take bold steps. The articles linked to the
left, for instance, talk about investor organizations, Usenet discussion
groups and large institutional investors who are now publicly clamoring
for action.
Joe Marengi should not waste his company's dowry courting small
companies. Novell will never return to the prominence it deserves
without help. I think Cisco is the right choice. But even if it is some
other company, Novell needs to settle down permanently with a strong
partner. Only a merger can rescue Novell from an Apple-style slide into
irrelevance.