American History 1988
Chapter 399 - 388 Starting Anew

Chapter 399: Chapter 388 Starting Anew

After entering the networking field, Novell’s goal had always been clear, focusing exclusively on operating systems.

If 3Com’s position in the microcomputer local area network (LAN) sector is a bit like Apple’s, then by extension, Novell could be compared to Microsoft.

In the beginning, the operating system developed by Novell was known as NOS.

Did you notice? It differs by only one letter from DOS.

In fact, there is indeed a deep connection between the two.

Both NOS and DOS were developed based on DROS, with common ancestry.

Therefore, Novell’s network operating system could actually run entirely independently of Microsoft’s software, while also being compatible with Microsoft’s DOS.

Later, as Novell’s network operating system became increasingly popular on microcomputer LANs, it found itself in the same advantageous position as Microsoft.

No matter which brand of PC and network hardware users employed, they could use Novell’s operating system.

The system was not only easy to install by itself, but also so simple to set up a local area network that even non-professionals could do it by reading the manual.

Even someone who had never studied computers could learn by watching someone else do it a couple of times.

Due to these factors, Novell’s operating system spread quickly, just like Microsoft’s DOS.

By the year 1990, it had almost monopolized the entire microcomputer LAN operating system market.

That year, Microsoft’s revenue was 1.1 billion US dollars, and Novell’s was 900 million US dollars.

The two were exceedingly close and this was the closest Novell ever got to Microsoft.

In the following years, riding the wave of inertia, Novell managed to maintain a 20% growth rate.

By 1995, its revenue reached 2 billion US dollars, whereas Microsoft’s figures had already surpassed 5 billion, with the former being roughly 40% of the latter.

Without a doubt, their gap was widening, but at least Novell had enjoyed a few years of smooth sailing.

Until 1994, Microsoft had always focused on personal operating systems and office software, so the competition between the two was not distinct.

Moreover, in the realm of network operating systems, Microsoft had nothing notable to offer and had to choose to collaborate with IBM to counter Novell’s advantages in networking.

The OS/2 system that emerged at the time was a product of this competition.

Unfortunately, the OS/2 system did not perform well and never became a mainstream network operating system.

However, things took a turn after 1995, when Microsoft launched its own Windows NT workstation.

Clearly, this was aimed at competing with Novell, and Microsoft had no intention of letting the former continue to grow.

Indeed, in the field of computer networking, Microsoft was aggressive, not letting go of any profitable ventures.

Besides, Novell was now focusing on enterprise network operating systems; who’s to say they wouldn’t one day enter the personal computer market?

It wasn’t an impossibility, considering Microsoft started with personal computers and then began penetrating enterprise workstations.

Because that’s just how Microsoft operates, it views others the same way.

But to be fair, Microsoft hadn’t completely misread Novell, since the latter had acquired the rights to the Unix system from AT&T in 1994.

It then proceeded to acquire the text processing software Word Perfect and the spreadsheet software company Borland, both of which had been overwhelmed by Microsoft.

By acquiring Unix, Novell now had a version of its network operating system that could serve Unix workstations.

The acquisitions of the other two companies revealed Novell’s determination to enter the office software market.

Although this seemed somewhat out of their primary line of business to outsiders, Dean could understand the reasons behind their actions.

At that time, Novell already commanded over 70% of the network operating system market share.

According to Norvig’s theorem, it was very difficult for its business to experience significant growth.

Therefore, to avoid being looked down upon by Wall Street, Novell had to explore new growth opportunities.

Perhaps Microsoft’s foray into the internet was motivated by the same goal.

It was difficult for them to make major breakthroughs in both the operating system and conventional office software sectors.

Considering the stock price, Gates had no choice but to cast a wide net.

It was natural for Novell to adopt such an expansion mindset since moving from enterprise operating systems to enterprise office software was a seamless transition.

Moreover, Microsoft’s Office had always made more money from businesses than from individual users, proving Novell’s entry point into the market was correct.

Unfortunately, since there were already Word and Excel, it was difficult for the market to accommodate a second office software provider.

Novell’s strategy for expanding into office software was not going smoothly, and it wasn’t the only one facing this issue.

Sun Microsystems and IBM also tried to break into the enterprise office software market but were kept at bay by Microsoft.

Bit has been hesitant to launch document software, also considering this factor.

Yet, there was a qualitative change in 1995 as the competition between Novell and Microsoft became fierce.

The Windows NT workstation released by Microsoft the previous year began to show its strength, and users transitioning from DOS to Windows faced almost no pressure.

In front of Windows NT, Novell’s operating system had no advantages to speak of.

It’s hard to imagine a local network installing Novell’s operating system on its network server while using Windows on networked PCs.

Clearly, for many businesses, it made more sense to adopt Microsoft’s Windows across the board.

This would ensure the uniformity of the company’s internal network planning, making everything, from after-sales service to technical support, much simpler.

At this point, the scales of victory began to tip towards Microsoft and gradually took on an irreversible trend.

Despite Novell continually improving its products and doing well technically,

for example, its network operating system supported all major computers, including Windows, UNIX, Apple’s Mac, and IBM’s mainframes.

This provided a high-performance unified platform for complex network systems that adopt multiple brands of computers.

Moreover, it could not only use dedicated servers but also turn any PC into a server, and it supported diskless workstations.

But in reality, not many companies needed to connect a variety of computers together because most had a unified plan when establishing their own networks.

So by 1996, Novell’s business was significantly impacted by competition from Microsoft Windows NT workstations.

Not to mention maintaining a 20% increase in revenue, even avoiding a decrease had become very difficult.

It was precisely at this time that Dean arrived, bringing with him something Novell had longed for.

"Dean, are you suggesting developing an alternative to the Windows system?" A blinding gleam flashed in Robert Frankenberger’s eyes.

"You should have seen John’s statement, Microsoft has provoked widespread anger; this is a good opportunity, Robert.

Perhaps we should find a time to talk about this, just like we did at the Silicon Valley exchange before."

Dean actually knew Robert Frankenberger, the current CEO of Novell, as they both graduated from Stanford University.

Yes, they were alumni, and they had even co-hosted lectures at Stanford together.

Even before Robert Frankenberger joined Novell last year, he was the vice president at Hewlett-Packard.

See the connection? Dean, Hewlett-Packard’s CEO John Yang, and Novell’s CEO Robert Frankenberger, they all knew each other.

And their relationship was quite good; it was a natural alliance.

"Of course, I’m not surprised by Microsoft pulling off something like this," Robert Frankenberger said, his eyes twinkling as he mulled over the thought he had just had.

"This is blatant monopolistic behavior; I’m ready to teach Seattle a profound lesson," Dean said as he looked up at him.

Robert Frankenberger was stunned for a moment but then nodded firmly in agreement.

"You’re right, Microsoft is too domineering. If needed, Novell is willing to provide necessary support to Navigator."

Dean looked around and then spoke a few words in a low voice to Robert Frankenberger.

The latter’s body shook, and then he looked at Dean with an expression of unbelievable joy.

"Novell can act as a witness, and when necessary, join forces with Navigator to sue Microsoft."

"Good," Dean nodded in satisfaction; the trip to Utah had not been in vain.

"By the way, about that operating system you just mentioned..." Robert Frankenberger couldn’t get it out of his mind.

"We could collaborate with computer manufacturers like Hewlett-Packard and Compaq to develop a new desktop operating system."

If they wanted to shake Microsoft’s monopoly, participation by computer manufacturers was essential.

Only with the entire industry’s support could there be a glimmer of possibility.

"Novell can be the organizer; we have the resources advantage," Robert Frankenberger volunteered without hesitation.

"That’s precisely what I had in mind," Dean nonchalantly handed the task over to him.

Indeed, Novell had such an advantage; their mainstay was operating systems.

Although enterprise network operating systems and personal desktop systems differed, technically, they were the same.

For Novell to develop a graphical desktop system was not only fitting in terms of resources but also likely to be more efficient.

However, while beginning such a project was easy, achieving the goal was extremely difficult.

Microsoft’s empire was already well-established, and it was hard for the market to accommodate a second operating system.

This was also why Dean had extended a favor in passing.

Of course, regardless of the future outcome, Dean would not hesitate to invest.

If it succeeded, even just causing trouble for Microsoft would be worthwhile.

According to the plan, the new operating system would be under the name of a Novell subsidiary.

Dean and other computer manufacturers would invest in it at a certain ratio.

Without benefits, who would want to exert the effort to compete with a behemoth like Microsoft?

Robert Frankenberger accepted these terms without any discontent, and he was even secretly delighted.

God, isn’t this precisely what Novell had been dreaming of?

Novell was currently retreating in the enterprise network operating system market against Microsoft; what was the fundamental reason?

Was it because Novell’s products were not good enough? Or were they technologically behind?

No, neither. The real reason was that Microsoft monopolized the personal desktop system market.

With an absolute advantage in the personal user market, expansion into the enterprise market was significantly easier.

Similarly, if Novell entered the personal user market, wouldn’t their competition in the enterprise market also benefit from this additional boost?

Robert Frankenberger found it hard not to think this way, and Novell’s current situation allowed no room for missing this opportunity.

They even had such plans already; otherwise, why would Novell have bought the rights to Unix?

Now, with external support and, most importantly, involvement from computer manufacturers, Dean’s proposal and Novell’s strategic plan coincided perfectly, forming an alliance almost instantly.

However, while Dean was taking action, Microsoft was not idling.

Finally, Gates’ directive that "only Navigator browser can be used" made its way to computer manufacturers.

A greater storm was brewing, and both parties finally came to close quarters.

Additionally, Dean had more than just antitrust measures up his sleeve against Microsoft’s forced either/or tactic.

Search the lightnovelworld.cc website on Google to access chapters of novels early and in the highest quality.