NETWORK WORLD NEWSLETTER: DAVE KEARNS ON NOVELL NETWARE TIPS
11/16/04
Today's focus:  Chris Stone and Novell part ways

Dear [EMAIL PROTECTED],

In this issue:

* Why Chris Stone is not expected to make another Novell 
��comeback
* Links related to Novell NetWare Tips
* Featured reader resource
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Today's focus:  Chris Stone and Novell part ways

By Dave Kearns

Last week, I promised that today we'd take a closer look at 
Chris Stone's departure from Novell, so let's get right to it.

In a Nov. 4 press release announcing Stone's departure, Novell 
said that the former vice-chairman had left "to pursue other 
opportunities." While Stone is quoted in the release as saying 
"It is with some regret that I have decided to leave Novell," 
it's notable that the company filed a notice with the Securities 
and Exchange Commission indicating that Stone was provided with 
a severance package of $2 million, plus healthcare benefits over 
the next 18 months. Employees who resign voluntarily are rarely 
given "severance" packages.

While it's possible that Stone's contract with Novell required 
the payment even if he left voluntarily, I can't picture Jack 
Messman agreeing to that kind of deal. The fact that no one has 
been able to speak to Stone indicates to me that his silence was 
part of the deal to obtain the severance package.

Stone has been absent from Novell's offices over the past couple 
of months - perhaps the past three months. I saw him at the 
Burton Group's Catalyst conference in mid-July (where he ducked, 
weaved and bobbed so he wouldn't have to talk to me). I also 
expected to see him at the end of July at the O'Reilly Open 
Source conference - but he pulled out of his keynote session at 
the last moment.

Shortly thereafter, Novell announced that Stone had taken a 
leave of absence to complete a short executive MBA program at 
Harvard. And shortly after that, Messman announced that all of 
the people who had reported to Stone would now report to two 
executives Novell inherited through its acquisition of Ximian 
and SilverStream Software: David Patrick, former Ximian 
president and CEO, and David Litwack, former SilverStream 
president and CEO. This left Stone a "minister without 
portfolio." In the culture that is Novell, this generally means 
the person should find somewhere else to go (Eric Schmidt, for 
example, had to be given several nudges before jumping ship and 
landing at Google).

Stone's tenure at Novell was actually his second at the company. 
>From 1997-99, he was the rising young star whom observers 
believed was being groomed to eventually replace Schmidt as CEO. 
After Schmidt left, Messman in 2002 recalled Stone to "active 
duty," where it was widely believed that - after a year - 
Messman would crown him CEO. But it didn't happen under Schmidt 
nor did it happen again under Messman. It's rumored that Stone's 
impatience got the better of him both times. Impatience not only 
with "waiting in the wings," but also with both the direction 
the company was taking as well as the speed at which it was 
getting there. Stone is a smooth and suave speaker, but in 
one-on-one conversations, he can be highly opinionated and even 
somewhat abrasive.

Evidence that there was a battle over direction and speed was 
noted in a Computerworld story about Stone's departure (see link 
below). The story quotes Dion Cornett, a financial analyst at 
Decatur Jones Equity Partners in Chicago, who called the 
departure "a negative for both [Novell] and the industry."

In the story, he adds, "We believe that Mr. Stone was 
instrumental in pushing Novell toward a strategy of capturing 
value from open source software, as opposed to other members of 
management may be more inclined toward giving away Linux to fuel 
demand for [Novell's] other offerings, such as identity 
management and directory services. We believe that the latter is 
a flawed strategy in that [Novell's] other products will 
eventually face commoditization as well, and giving away the 
operating system not only sets a poor business precedent, but 
may even accelerate the commoditization of products higher in 
the stack."

In other words, Stone may eventually be proven right, as he was 
after leaving Novell the first time. Back then, Stone wanted to 
move more quickly to encompass and employ open source within the 
NetWare framework and left because he was frustrated at Novell's 
slow pace of adopting this strategy. But no one expects that 
there'll be a third coming.

RELATED EDITORIAL LINKS

Update: Open source advocate Chris Stone leaves Novell
Computerworld, 11/05/04
http://www.nwfusion.com/nlnovell834

The Extended Enterprise Issue
Network World, 11/15/04
http://www.nwfusion.com/ee/2004/
_______________________________________________________________
To contact: Dave Kearns

Dave Kearns is a writer and consultant in Silicon Valley. He's 
written a number of books including the (sadly) now out of print 
"Peter Norton's Complete Guide to Networks." His musings can be 
found at Virtual Quill <http://www.vquill.com/>.

Kearns is the author of three Network World Newsletters: Windows 
Networking Tips, Novell NetWare Tips, and Identity Management. 
Comments about these newsletters should be sent to him at these 

respective addresses: <mailto:[EMAIL PROTECTED]>, 
<mailto:[EMAIL PROTECTED]>, <mailto:[EMAIL PROTECTED]>.

Kearns provides content services to network vendors: books, 
manuals, white papers, lectures and seminars, marketing, 
technical marketing and support documents. Virtual Quill 
provides "words to sell by..." Find out more by e-mail at 
<mailto:[EMAIL PROTECTED]> 
_______________________________________________________________
This newsletter is sponsored by Intel 
IT Productivity; Increasing ROI 

Learn how to effectively measure employee productivity, manage 
IT investments and reduce the Total Cost of Ownership in 
enterprise data management.  Visit Intel's IT Productivity 
center.  Click here to download white papers, books and IDC 
Research. 
http://www.fattail.com/redir/redirect.asp?CID=88378
_______________________________________________________________
ARCHIVE LINKS

Archive of the Novell NetWare Tips newsletter:
http://www.nwfusion.com/newsletters/netware/index.html

Novell news page
The Novell news and analysis from Network World Fusion.
http://www.nwfusion.com/news/financial/novell.html
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