Novell

Novell, Inc. was an American software and services company founded in Utah in 1980. It began as Novell Data Systems, a small hardware manufacturer making microcomputers, terminals, and peripherals, but its early hardware business struggled in a crowded and rapidly changing market. The company’s strategic direction changed after a group of programmers known as SuperSet Software developed networking technology while working with Novell. Their work eventually became the foundation for NetWare, a network operating system that allowed personal computers to share files, printers, applications, and other resources across local-area networks. Under chief executive Ray Noorda, who joined the company in the early 1980s, Novell concentrated on network infrastructure rather than trying to compete primarily as a personal-computer manufacturer. NetWare became particularly successful because it was fast, reliable, and designed as a dedicated server operating system. It supported user and group permissions, file and volume security, centralized administration, and networking across heterogeneous computer environments. Novell also developed the IPX/SPX protocol family and the NetWare Core Protocol, technologies that helped make PC networking practical for businesses before the widespread dominance of TCP/IP and Windows-based server platforms. NetWare reached its strongest position during the second half of the 1980s and the first half of the 1990s. At its peak, it held a majority share of the network-operating-system market, and hundreds of thousands of networks used NetWare worldwide. Novell’s success helped move business computing away from centralized mainframes toward departmental and distributed PC networks. It also helped establish Utah Valley as an important center for software development. The company expanded through acquisitions, including Excelan, Digital Research, Unix System Laboratories, WordPerfect, and technology obtained from Borland. These transactions gave Novell networking, operating-system, office-productivity, and Unix assets, but the businesses were difficult to integrate and did not produce a durable answer to Microsoft’s growing platform power. Novell’s decline accelerated as Microsoft incorporated networking services into Windows NT and later Windows Server. NetWare remained technically significant, but its proprietary protocols and dependence on a specialized server ecosystem became disadvantages as Windows networking and TCP/IP gained adoption. Products such as Novell Directory Services, later known as eDirectory, and GroupWise extended the company into identity management, messaging, collaboration, and enterprise administration. Novell also acquired SUSE Linux and attempted to reposition itself around open-source operating systems, identity, systems management, and interoperability. A 2006 technical and commercial agreement with Microsoft sought to improve interoperability between Windows and SUSE Linux and included a Microsoft-backed SUSE Linux distribution arrangement. The partnership reflected Novell’s attempt to remain relevant in mixed enterprise environments, although it did not restore the company’s earlier market dominance. Novell became a wholly owned subsidiary of The Attachmate Group in 2011. Attachmate was acquired by Micro Focus in 2014, after which Novell’s products and technologies were managed within broader product portfolios rather than as an independent public company. Micro Focus was acquired by OpenText in 2023, and former Novell technologies continue in products and divisions associated with OpenText.

Novell’s origins lie in Novell Data Systems, founded in 1980 in Orem, Utah, by George Canova and Jack Davis. The original company intended to sell small-business computers, terminals, and peripherals. Its Nexus microcomputer and Image 800 printer reached the market, but the hardware arrived late and faced strong competition. Financial pressure led to management changes, layoffs, and a strategic reconsideration of where the company’s value lay. During 1981, Novell Data Systems worked with SuperSet Software, a group associated with Drew Major, Dale Neibaur, and Kyle Powell. The group initially explored ways to connect multiple microcomputers and developed the multiplayer game Snipes as a practical networking experiment. Demonstrations of the game running across different personal computers helped show that the networking technology was more promising than Novell’s hardware business. Safeguard Scientifics, the company’s principal financial backer, consequently supported a shift toward software and local-area networking. Novell, Inc. was incorporated in January 1983. Ray Noorda became president and chief executive later that year, and the company made networking its central strategy. The first implementation, ShareNet, used proprietary server hardware and a network operating system. Novell then moved toward the IBM PC platform, producing NetWare for IBM-compatible servers. NetWare provided centralized file and print services and quickly became an important product as businesses adopted PCs but needed shared resources and administration. NetWare’s performance and security model were major competitive advantages. It was engineered as a dedicated network operating system and could run efficiently on contemporary Intel hardware. Novell’s IPX and SPX protocols, NetWare Core Protocol, access controls, and server-management features created a coherent ecosystem for enterprise networking. Advanced NetWare/286 and NetWare 386, released as PC hardware evolved, expanded the product’s capabilities. Novell also sold Ethernet adapter cards and supported connections to Macintosh and Unix environments. The company’s networking technology helped make distributed PC networks a serious alternative to centralized mainframe arrangements. Novell expanded aggressively during the late 1980s and 1990s. Its acquisition of Excelan added Ethernet and TCP/IP capabilities. Under Noorda, the company also purchased Digital Research, Unix System Laboratories, WordPerfect, and the Quattro Pro business from Borland. These acquisitions represented an effort to compete with Microsoft in operating systems, office productivity, applications, and networking. In practice, several assets were acquired at difficult points in their market cycles, and their products and customer communities did not integrate into a unified platform capable of stopping Microsoft’s momentum. The competitive environment changed as Microsoft bundled networking functions into Windows NT and later Windows Server. NetWare’s market share declined, even though it retained a substantial installed base and a reputation for reliability. Novell sought new growth through directory services, messaging, collaboration, systems management, and open-source software. Novell Directory Services, later eDirectory, gave the company an important identity and administration business, while GroupWise addressed enterprise messaging and collaboration. The acquisition of SUSE Linux allowed Novell to present itself as a provider of Linux and mixed-environment infrastructure, rather than only as a NetWare vendor. Novell’s 2006 agreement with Microsoft was a significant strategic decision. It sought practical interoperability between Windows and SUSE Linux and included collaboration on virtualization, management, and intellectual-property matters. The arrangement acknowledged that many enterprise customers operated mixed environments and that interoperability could be more valuable than direct platform confrontation. It generated controversy among parts of the free-software community, particularly regarding patent and distribution provisions, but it did not return Novell to its former position in the network-operating-system market. The Attachmate Group acquired Novell in 2011, making it a wholly owned subsidiary. Attachmate was acquired by Micro Focus in 2014, and Novell ceased to operate as an independent corporate entity. Micro Focus was subsequently acquired by OpenText in 2023. Novell’s name and technologies therefore survive mainly through products and capabilities incorporated into OpenText businesses, while the original company’s historical importance rests on its role in popularizing enterprise PC networking and shaping the early local-area-network industry.

1. 2023OpenText acquires Micro Focus

   OpenText acquires Micro Focus and assumes ownership of the former Novell product and technology portfolio.

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2. 2014Novell enters Micro Focus ownership

   Micro Focus acquires The Attachmate Group, ending Novell’s independent corporate existence.

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3. 2011Novell is acquired by Attachmate

   The Attachmate Group completes its acquisition of Novell, which becomes a wholly owned subsidiary.

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4. 2006Microsoft interoperability agreement

   Novell and Microsoft establish a partnership around Windows–SUSE Linux interoperability, virtualization, management, and intellectual-property arrangements.

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5. 2000Novell acquires SUSE

   The acquisition brings SUSE Linux into Novell and supports a shift toward Linux and heterogeneous enterprise infrastructure.

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6. 1994WordPerfect acquisition

   Novell acquires WordPerfect and related software assets but struggles to integrate them into a successful Microsoft competitor.

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7. 1993Unix System Laboratories acquisition

   Novell acquires Unix System Laboratories and adds Unix assets to its enterprise software portfolio.

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8. 1991Digital Research acquisition

   Novell acquires Digital Research as part of a broader platform-expansion strategy.

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9. 1989NetWare 386 launches

   The 386-generation release improves NetWare’s architecture and takes advantage of Intel 80386 systems.

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10. 1989Excelan acquisition

    Novell acquires Excelan, adding Ethernet hardware and TCP/IP networking expertise.

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11. 1987Novell expands into Ethernet adapters

    The company begins selling NE-series Ethernet adapter cards alongside its server software.

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12. 1985Novell begins public trading

    A rights offering reduces Safeguard Scientifics’ ownership and Novell shares begin trading over the counter.

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13. 1983Novell, Inc. is incorporated

    The company adopts the Novell, Inc. name and Ray Noorda becomes its president and chief executive.

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14. 1983NetWare is introduced

    Novell moves its networking operating system toward IBM-compatible personal computers and begins building the NetWare franchise.

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15. 1981SuperSet Software begins networking work

    Drew Major, Dale Neibaur, and Kyle Powell work on technology to link personal computers; the Snipes game becomes an influential networking demonstration.

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16. 1980Novell Data Systems is founded

    George Canova and Jack Davis establish Novell Data Systems in Utah as a computer-systems and peripheral manufacturer.

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Enterprise infrastructure and networking software focused on secure file and print services, directory services, identity, collaboration, Linux, and heterogeneous-system interoperability.

• NetWareNetwork operating system1983

  Novell’s defining product was a dedicated network operating system for PC servers. NetWare supplied centralized file and print services, user and group permissions, volume and file access controls, directory functions, and support for heterogeneous clients. Its performance on contemporary Intel hardware and its integrated IPX/SPX networking protocols helped it become the leading PC network operating system during the late 1980s and early 1990s. Later versions added stronger directory, TCP/IP, management, and application-server capabilities.

• Novell Directory Services (NDS) / eDirectoryDirectory and identity management1993

  NDS, later called eDirectory, provided a distributed directory for representing users, groups, devices, applications, and access rights across enterprise networks. It extended Novell beyond file and print services into identity administration and centralized policy control, and it was designed to operate across mixed platforms and organizational structures.

• GroupWiseEnterprise messaging and collaboration1990

  GroupWise was Novell’s enterprise messaging, calendaring, contact-management, and collaboration platform. It served organizations that wanted an integrated alternative to separate email and scheduling systems and was closely associated with Novell’s broader directory and systems-management products.

• SUSE Linux EnterpriseEnterprise Linux2004

  After acquiring SUSE, Novell marketed enterprise Linux products and support as part of a strategy to address modern data centers and mixed Windows–Linux environments. SUSE gave Novell an open-source operating-system platform and a route into Linux server infrastructure as NetWare declined.

• ZENworksSystems and endpoint management1998

  ZENworks was a family of systems-management products for software distribution, configuration, endpoint administration, asset management, and policy enforcement. It represented Novell’s effort to provide centralized management across desktops, servers, and heterogeneous enterprise environments.

• NetWare Core ProtocolNetwork protocol1983

  NCP was the application-level protocol used by NetWare clients and servers for services such as file access, printing, directory operations, and administration. It formed a core part of Novell’s proprietary networking ecosystem before broader TCP/IP-based enterprise networking became dominant.

• 2006Novell–Microsoft Interoperability Partnership

  Global enterprise software markets

  Novell and Microsoft promoted interoperability between Windows and SUSE Linux, including joint work on virtualization, systems management, and mixed-environment deployment. The arrangement also included Microsoft-backed distribution of SUSE Linux subscriptions.

  Outcome. The partnership gave Novell a high-profile enterprise interoperability position but did not reverse the long-term decline of NetWare or restore Novell’s former market dominance.

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• 2011Sale to The Attachmate GroupM&A

  Novell had not regained its former networking dominance and was pursuing a portfolio-based enterprise software strategy.

  What changed. The Attachmate Group acquired Novell and made it a wholly owned subsidiary.

  Aftermath. Novell ceased to be an independent public company; its products continued under subsequent corporate owners.

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• 2006Windows–SUSE Linux interoperability agreementStrategy

  Many enterprise customers operated both Microsoft Windows and Linux systems, limiting the appeal of a purely platform-centric strategy.

  What changed. Novell partnered with Microsoft on interoperability, virtualization, management, and intellectual-property matters, with Microsoft supporting SUSE Linux subscriptions.

  Aftermath. The agreement improved the visibility of Novell’s mixed-environment strategy while provoking free-software criticism and failing to restore NetWare’s former position.

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• 2000Acquisition of SUSEM&A

  The growth of Linux and the decline of proprietary network operating systems required Novell to broaden its infrastructure strategy.

  What changed. Novell acquired SUSE and incorporated enterprise Linux into its product portfolio.

  Aftermath. SUSE became central to Novell’s Linux and interoperability positioning and later passed through Attachmate, Micro Focus, and OpenText ownership.

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• 1994Acquisition of WordPerfectM&A

  Novell attempted to challenge Microsoft across both networking and personal-computer productivity software.

  What changed. Novell acquired WordPerfect and associated software assets.

  Aftermath. The acquisition did not produce a sustainable integrated competitor to Microsoft Office, and Novell later divested the business.

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• 1989Acquisition of ExcelanM&A

  Novell needed stronger Ethernet and TCP/IP capabilities as enterprise networking moved beyond proprietary protocols and hardware.

  What changed. Novell acquired Excelan and integrated its networking technology and leadership into the company.

  Aftermath. The deal strengthened Novell’s Internet-protocol and Silicon Valley presence.

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• 1983Shift from hardware to network softwareStrategy

  Novell Data Systems’ microcomputer and peripheral business was underperforming, while networking work from SuperSet Software showed stronger commercial potential.

  What changed. The reorganized Novell concentrated resources on a network operating system and moved the product toward IBM-compatible PCs.

  Aftermath. The decision created the NetWare franchise and made Novell a major enterprise software company.

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• 2006Controversy over the Microsoft–Novell agreementControversy

  Parts of the free-software community criticized the partnership’s patent and intellectual-property provisions and the structure of Microsoft-supported SUSE Linux subscriptions. The controversy centered on concerns about unequal legal protection and possible effects on software freedom.

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• 2023OpenText acquires Micro Focus

  Micro Focus was acquired by OpenText, bringing former Novell products and technologies into OpenText’s enterprise software portfolio.

  M&A
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• 2014Micro Focus acquires The Attachmate Group

  Attachmate and its Novell subsidiary became part of Micro Focus International.

  M&A
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• 2011The Attachmate Group acquires Novell

  Novell was acquired by The Attachmate Group and became a wholly owned subsidiary, ending its independent corporate existence.

  M&A
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• 2006Novell and Microsoft announce interoperability partnership

  The companies announced a broad agreement covering Windows and SUSE Linux interoperability, virtualization, management, and intellectual-property issues. Microsoft also agreed to distribute SUSE Linux subscriptions.

  Other
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• 1994Novell acquires WordPerfect

  Novell purchased WordPerfect and related office-software assets, but the combination did not successfully displace Microsoft’s productivity software position.

  M&A
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• 1993Novell acquires Unix System Laboratories

  The transaction brought Unix intellectual property and operating-system assets into Novell’s portfolio during its attempt to challenge Microsoft across multiple software layers.

  M&A
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• 1991Novell acquires Digital Research

  Novell acquired Digital Research as part of an effort to broaden its operating-system and software platform portfolio.

  M&A
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• 1989Novell acquires Excelan

  The acquisition added Ethernet networking and TCP/IP expertise and strengthened Novell’s presence in Silicon Valley.

  M&A
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• 1983Novell incorporates under its shortened corporate name

  Novell Data Systems was reorganized and incorporated as Novell, Inc., with Ray Noorda subsequently announced as president and chief executive.

  OtherLeadership change
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• 1983NetWare becomes Novell’s central networking product

  Novell shifted its emphasis from unsuccessful proprietary computer hardware toward a network operating system for IBM-compatible personal computers.

  Product launch
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1. Novell