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Building a company mission

By the end of fiscal 1984, Ray and his team had articulated a lofty mission for Novell: To make the LAN industry grow faster with Novell than it would without Novell. They came up with a slogan: "Dedicated to Serve All LANkind" The following article from a company publication is reprinted in its entirety because it reiterates all of the key messages in Novell's marketing communications at that time:

Novell CEO On Company Role In Industry

Novell CEO, Raymond J. Noorda[,] was interviewed recently concerning his company's current role in the dynamic computer industry. Mr. Noorda, whose career began with a business automation division of General Electric, expressed his views:

"Novell's mission is to cause a substantial increase in the growth of LANs -- as much as 25 percent over current industry projections."

Noorda explained, "This can only be done by bringing end users together with software technology which provides a standard operating system for all popular LANs -- including but not restricted to hardware provided by one vendor."

Having recognized early the coming desktop computer revolution, Mr. Noorda involved himself and his growing company in local area networking. While some potential LAN users debate the need for standards in networking, Mr. Noorda expanded, "Novell has seen the emerging world of LANs differently. As a result, we created Netware -- an operating system specifically designed for LANs supplied by other manufacturers. We feel that a LAN is only as good as the software that manages it. Our company's `top down' approach provides a uniform interface for the user and application regardless of the physical connections between devices. NetWare creates a system that lets personal computers perform at a mini/mainframe level. With NetWare the data flow is managed efficiently along with the security, dependability and performance found in former data processing, MIS days."

Noorda added that this was with the added benefits and features found in today's advanced PC technology. "By preserving the control and ease of use of the PC, NetWare gives the best of both worlds.

When asked about other problems that NetWare solved for its users, the Utah executive replied, "NetWare promotes compatibility among different kinds of personal computers and operating systems. The customer is then left to choose the computers and software that best suits his company's needs." He noted that NetWare is compatible with the IBM PC Network, "Applications written for the IBM PC Network run unchanged on Novell's Netware -- only much faster."

Noorda mentioned that another strong point of NetWare was that it allowed control and management of data while maintaining the individuality of personal computer use. "And that's done right because it's a file server."

When questioned as to whether some potential LAN users were interested in LANs because local area networking would protect existing corporate investments in hardware, software, data and training. Noorda nodded agreement. "Besides that, NetWare will help create company information systems that are efficient, but also flexible, while at the same time staying on the edge of changing LAN technology."

Noorda, whose company has doubled its work force in the last year[,] concluded, "Our commitment at Novell is to make LANs function as they are intended. We've created an operating system that provides a standard across all local area networks. By implementing that standard, leading software suppliers can easily create multi-user PC software that runs on all popular LANs. At Novell we create systems that open up new areas of practical application for PC local area networks. That's our commitment. The success of LANs ensures ours."

Comdex 84

The crowning event of 1984 was Novell's presence at Comdex in Las Vegas (November 14 through 18). At that time, the sprawling trade show was still contained within the walls of the Las Vegas Convention Center; in subsequent years it would spill out to occupy more than seven hotels and other exhibition spaces. At Comdex, Novell rolled out its newly minted products and philosophy. It was also the first major demonstration of the innovative marketing communications that would establish Novell's image and make Judith Clarke a LAN industry celebrity.

Novell's most daring undertaking was to create a LAN that would network about 20 exhibitors scattered in different areas of the Convention Center. Novell had help from 3M Company's Interactive Systems Division, a new NetWare OEM customer, but for both companies the Comdex LAN was an enormous project fraught with risk. If the LAN worked, it would gain a lot of attention for Novell. If the network failed, Novell would be embarrassed before the industry partners it had worked hard to line up. And it would be impossible for Novell to hide its failure from the show attendees, because all of the company's promotional materials at its booth were designed to showcase the Comdex LAN.

The Las Vegas Convention Center is a gargantuan building, each side of the Center is nearly a quarter mile long, and it could comfortably house dozens of booths inside that were two stories high. To lay the network cable through the building was a physically demanding task. Then connections had to be made linking the cable to each of the participating booths. And the entire project had to be set up and operational in just 72 hours.

The purpose of the Comdex LAN was to demonstrate Advanced NetWare. Visitors to the show were invited to play a multi-user trivia game on PCs located in various booths and locations throughout the convention center. The program, called MUT (for Multi-user Trivia) engaged multiple users in a race to answer multiple-choice trivia questions. Speed, accuracy, and a person's score relative to the other players determined the winners. Ten prizes were awarded to the top 10 players on each day of the five-day show. The top three players each day received cash prizes ($100, $50, or $25), and all 10 winners received Novell T-shirts.

A typical question was: "What did Benjamin Franklin advocate as the US National Symbol?" The choices were:

a.The bald eagle

b.The flying burrito

c.The turkey

d.The Frisbee

People loved it. MUT was a smashing success. It demonstrated some key features of Advanced NetWare,* and it brought people into the Novell booth. [*For example, a Master Edit program edited the configuration and game information on a real-time basis without disturbing the game.]

When visitors showed up at the booth, they were engaged by a number of different attractions. In one corner of the booth, five PCs were set up, each one containing a 10-minute, interactive LAN seminar on diskette. Nearby, a large bookcase displayed packages of NetWare-compatible software applications, and next to the bookcase was an area where independent software vendors actually demonstrated their products. At the other end of the booth was a PC running the trivia game, and next to it was a television showing The Novell Story, a 10-minute video explaining Novell and NetWare. At another PC station, an e-mail program (developed by MAI/Basic Four) allowed visitors to send messages to other exhibitors on the network. At the center of the booth was a display showing demonstrations of Advanced NetWare. At the booth's information desk, visitors could pick up a copy of a little eight-page newsletter called LAN Times.

All the elements of Novell's marketing strategy were represented in its Comdex booth. The Comdex LAN, trivia game, and e-mail program demonstrated the concept of hardware independence. The large number of independent software developers who were demonstrating their products at Novell's booth sent a message that numerous applications were compatible with NetWare and that Novell was eager to form alliances with other players in the industry. The educational video, the interactive diskette, and LAN Times showed Novell's strategy of educating the industry.

The booth was an example of Judith Clarke's flair for marketing communications. Although the ideas for the booth were contributed by many members of the management team, including Superset, Ray, and Craig Burton, the execution fell mostly to Judith. The combination of video, LAN demonstration, trivia game, newsletter, bookcase, and educational seminars led by live people was more than just clever -- it was devastatingly effective. The booth was a high-powered marketing communications device to match Novell's high-powered marketing strategy.

The LAN Times newsletter distributed at Comdex was a seed that would ultimately grow into a multi-million dollar industry magazine. The first issue was a rather crude affair, replete with typographical errors, and produced in great haste on a low budget. It contained short articles on Novell's Comdex activities, on Novell's OEM partners, and on Novell's strategy and philosophy. A one page advertisement aimed at independent software developers called "LAN Report 1" described the Multiple User Software Licensing System (MUSLS). But for all its simplicity, the LAN Times was popular item at the show, and Judith resolved to do a few more issues.

On the first day of Comdex, Novell held a press conference. About 150 people were invited to hear Ray Noorda talk and to find out about Advanced NetWare. A fair number of people showed up, including many editors. Ever since IBM announced the file server-based PC Network Program in September, people were taking a second look at Novell and NetWare. In addressing the audience, Ray focused on three key messages: 1) The IBM announcement had delivered the coup de grace to the LAN manufacturers who relied on disk server technology; 2) the NetWare Operating System offered, in effect, a standard solution to the problem of networking different proprietary LAN systems (and, incidentally, could be purchased as an OEM product); and 3) by writing applications for NetWare, software developers could access not just Novell LANs but the entire LAN market. Novell was in a position to rescue all those LAN manufacturers and software developers who had bet on the wrong pony.

Excerpts from Ray's speech were printed in the LAN Times newsletter:* [The article was prepared in advance of the press conference, before Ray had actually delivered his speech. Hence the mix of past and future tense in the article.]

Mr. Noorda commented that he has changed Novell's 1984 slogan from "NetWare, Dedicated to SERVE all LANkind" to "NetWare, Dedicated to SAVE all LANkind." Ray Noorda will announce a plan that will enable LAN vendors to standardize their networks so that they are IBM compatible and will run much faster with increased functionality, flexibility, and security.

Mr. Noorda stated, "Our commitment at Novell is to make LANs function as everyone intended them to with network operating systems that deliver optimum performance. We've created an operating system that provides a standard across all local area networks. And by implementing that standard leading software suppliers can easily create multiuser PC software that runs on all popular LANs. At Novell we create systems that open up new areas of practical application for PC LANs. Because LANs are here to stay."

By the end of 1984, Novell was shipping about $1.3 million per month.

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