Will Web services revive Novell?

Several analysts voiced doubts about this latest revival attempt, given Novell's already precipitous drop in mindshare. "I don't (think) this particular move is going to get them any closer," said Neuenschwander. But "Novell has to have some sort of Web services story." There's still plenty of time for new players to jump into Web services, but viewing it as a business saviour may be risky at best. "At what point does (Web services) move from a technology to a market? That's a tricky question," said Ron Schmelzer, analyst with industry consultants ZapThink. A saving grace for the company could be the lingering indecision among technology buyers. Analysts say many buyers are sitting on the Web services sidelines until standards gel further. And Novell's strategy is still evolving. Some analysts believe the SilverStream purchase will be just one of several acquisitions in the coming months intended to put some polish on its product line-up. "We view this acquisition as a step in the right direction: Novell needs to build a portfolio of new products to offset declining NetWare revenue trends and we would not be surprised to see the company make additional acquisitions to further the development of its advanced integration platform," Don Young, equities analyst with UBS Warburg, said in a report this week. Novell in recent months has taken other steps to move itself into the forefront of technology. For instance, last month the company released a new software specification for linking an important underlying standard for Web services, called Universal Description, Discovery and Integration (UDDI), to a significant existing technology for directory services software, called Lightweight Directory Access Protocol (LDAP). Directory services software, a database of information on computer users, software, systems and other information that resides on a corporate network, has long been one of Novell's strengths. Novell also plans to counter competitors with a set of software and services it acquired from Cambridge Technology Partners. In the coming months, the company said it plans to round out a strategy to deliver an "advanced integrations platform" that it has yet to detail. But any success seems a long way off. "It's hardly a time to spike the ball," Neuenschwander said. Novell remains undaunted, hoping it can return as a force to be reckoned with in Web services. Yet the same ghosts from its past -- failed acquisitions used to expand into new markets, executive shuffling, a sales organisation overly focused on NetWare -- may creep up once again, making life difficult for the company's CEO. "Novell has to get aggressive, compete head-on, and win based on our ability to solve a problem, not just (based on) the world's best technology," Stone said. "Oftentimes, being just good enough gets you far -- witness Microsoft. We now have both."

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