March 21, 1997 11:00 AM ET
Novell and Netscape spin off 'Novonyx'
By Lisa Wirthman

  Novell Inc. and Netscape Communications Corp. plan to form a new software company to deliver Netscape's SuiteSpot Internet server family on Novell's IntranetWare operating system.

The new, privately-held Utah company, called Novonyx, will "adapt, integrate and sell" Netscape's software on IntranetWare, said Vic Langford, senior vice president of Internet Strategies for Novell, of Provo, Utah.

For Netscape, the partnership makes its Internet servers more heterogeneous and widely available: Netscape will be able to leverage Novell's 60 million NetWare users and 30,000 value-added resellers.

For Novell, the agreement shows off IntranetWare's strength as an Internet server platform, Langford said.

Netscape's Enterprise and FastTrack servers will be the first to ship on IntranetWare; they are due in the next six months. An early beta version of the combined products will be previewed at Novell's BrainShare user conference in Salt Lake City next week.

No schedule has been determined for the order or time frame in which other SuiteSpot server applications will be released for IntranetWare.

Langford maintained the deal will not cannibalize Novell's own Web Server 3.0, an upgrade now available on Novell's site. As a feature of IntranetWare, users get Web Server whether they buy it from Novell or as part of a combined Novonyx product, he said.

But Novell does pass up a chance to gain instant credibility and increase perception that it's an Internet player by offering the products under its own name.

Forming a third-party company ensures a dedicated focus on developing the combined products, Langford said.

"In the past when we've talked about licensing SuiteSpot, there was a question of how to give the development effort sufficient momentum and focus," he said. "We decided we could do that better through a separate company."

Additional information on Novonyx can be found at http://www.novonyx.com.

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