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Novell

Novell was an American enterprise software company best known for NetWare, a pioneering network operating system that helped establish PC-based local-area networking.

Last updated August 31, 2026

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Overview

Novell, Inc. was an American software and services company founded in Utah in 1980. It began as Novell Data Systems, a small hardware manufacturer making microcomputers, terminals, and peripherals, but its early hardware business struggled in a crowded and rapidly changing market. The company’s strategic direction changed after a group of programmers known as SuperSet Software developed networking technology while working with Novell. Their work eventually became the foundation for NetWare, a network operating system that allowed personal computers to share files, printers, applications, and other resources across local-area networks. Under chief executive Ray Noorda, who joined the company in the early 1980s, Novell concentrated on network infrastructure rather than trying to compete primarily as a personal-computer manufacturer. NetWare became particularly successful because it was fast, reliable, and designed as a dedicated server operating system. It supported user and group permissions, file and volume security, centralized administration, and networking across heterogeneous computer environments. Novell also developed the IPX/SPX protocol family and the NetWare Core Protocol, technologies that helped make PC networking practical for businesses before the widespread dominance of TCP/IP and Windows-based server platforms. NetWare reached its strongest position during the second half of the 1980s and the first half of the 1990s. At its peak, it held a majority share of the network-operating-system market, and hundreds of thousands of networks used NetWare worldwide. Novell’s success helped move business computing away from centralized mainframes toward departmental and distributed PC networks. It also helped establish Utah Valley as an important center for software development. The company expanded through acquisitions, including Excelan, Digital Research, Unix System Laboratories, WordPerfect, and technology obtained from Borland. These transactions gave Novell networking, operating-system, office-productivity, and Unix assets, but the businesses were difficult to integrate and did not produce a durable answer to Microsoft’s growing platform power. Novell’s decline accelerated as Microsoft incorporated networking services into Windows NT and later Windows Server. NetWare remained technically significant, but its proprietary protocols and dependence on a specialized server ecosystem became disadvantages as Windows networking and TCP/IP gained adoption. Products such as Novell Directory Services, later known as eDirectory, and GroupWise extended the company into identity management, messaging, collaboration, and enterprise administration. Novell also acquired SUSE Linux and attempted to reposition itself around open-source operating systems, identity, systems management, and interoperability. A 2006 technical and commercial agreement with Microsoft sought to improve interoperability between Windows and SUSE Linux and included a Microsoft-backed SUSE Linux distribution arrangement. The partnership reflected Novell’s attempt to remain relevant in mixed enterprise environments, although it did not restore the company’s earlier market dominance. Novell became a wholly owned subsidiary of The Attachmate Group in 2011. Attachmate was acquired by Micro Focus in 2014, after which Novell’s products and technologies were managed within broader product portfolios rather than as an independent public company. Micro Focus was acquired by OpenText in 2023, and former Novell technologies continue in products and divisions associated with OpenText.

History

Novell’s origins lie in Novell Data Systems, founded in 1980 in Orem, Utah, by George Canova and Jack Davis. The original company intended to sell small-business computers, terminals, and peripherals. Its Nexus microcomputer and Image 800 printer reached the market, but the hardware arrived late and faced strong competition. Financial pressure led to management changes, layoffs, and a strategic reconsideration of where the company’s value lay. During 1981, Novell Data Systems worked with SuperSet Software, a group associated with Drew Major, Dale Neibaur, and Kyle Powell. The group initially explored ways to connect multiple microcomputers and developed the multiplayer game Snipes as a practical networking experiment. Demonstrations of the game running across different personal computers helped show that the networking technology was more promising than Novell’s hardware business. Safeguard Scientifics, the company’s principal financial backer, consequently supported a shift toward software and local-area networking. Novell, Inc. was incorporated in January 1983. Ray Noorda became president and chief executive later that year, and the company made networking its central strategy. The first implementation, ShareNet, used proprietary server hardware and a network operating system. Novell then moved toward the IBM PC platform, producing NetWare for IBM-compatible servers. NetWare provided centralized file and print services and quickly became an important product as businesses adopted PCs but needed shared resources and administration. NetWare’s performance and security model were major competitive advantages. It was engineered as a dedicated network operating system and could run efficiently on contemporary Intel hardware. Novell’s IPX and SPX protocols, NetWare Core Protocol, access controls, and server-management features created a coherent ecosystem for enterprise networking. Advanced NetWare/286 and NetWare 386, released as PC hardware evolved, expanded the product’s capabilities. Novell also sold Ethernet adapter cards and supported connections to Macintosh and Unix environments. The company’s networking technology helped make distributed PC networks a serious alternative to centralized mainframe arrangements. Novell expanded aggressively during the late 1980s and 1990s. Its acquisition of Excelan added Ethernet and TCP/IP capabilities. Under Noorda, the company also purchased Digital Research, Unix System Laboratories, WordPerfect, and the Quattro Pro business from Borland. These acquisitions represented an effort to compete with Microsoft in operating systems, office productivity, applications, and networking. In practice, several assets were acquired at difficult points in their market cycles, and their products and customer communities did not integrate into a unified platform capable of stopping Microsoft’s momentum. The competitive environment changed as Microsoft bundled networking functions into Windows NT and later Windows Server. NetWare’s market share declined, even though it retained a substantial installed base and a reputation for reliability. Novell sought new growth through directory services, messaging, collaboration, systems management, and open-source software. Novell Directory Services, later eDirectory, gave the company an important identity and administration business, while GroupWise addressed enterprise messaging and collaboration. The acquisition of SUSE Linux allowed Novell to present itself as a provider of Linux and mixed-environment infrastructure, rather than only as a NetWare vendor. Novell’s 2006 agreement with Microsoft was a significant strategic decision. It sought practical interoperability between Windows and SUSE Linux and included collaboration on virtualization, management, and intellectual-property matters. The arrangement acknowledged that many enterprise customers operated mixed environments and that interoperability could be more valuable than direct platform confrontation. It generated controversy among parts of the free-software community, particularly regarding patent and distribution provisions, but it did not return Novell to its former position in the network-operating-system market. The Attachmate Group acquired Novell in 2011, making it a wholly owned subsidiary. Attachmate was acquired by Micro Focus in 2014, and Novell ceased to operate as an independent corporate entity. Micro Focus was subsequently acquired by OpenText in 2023. Novell’s name and technologies therefore survive mainly through products and capabilities incorporated into OpenText businesses, while the original company’s historical importance rests on its role in popularizing enterprise PC networking and shaping the early local-area-network industry.

  • 2023

    OpenText acquires Micro Focus

    [1]

    OpenText acquires Micro Focus and assumes ownership of the former Novell product and technology portfolio.

  • 2014

    Novell enters Micro Focus ownership

    [1]

    Micro Focus acquires The Attachmate Group, ending Novell’s independent corporate existence.

  • 2011

    Novell is acquired by Attachmate

    [1]

    The Attachmate Group completes its acquisition of Novell, which becomes a wholly owned subsidiary.

  • 2006

    Microsoft interoperability agreement

    [1]

    Novell and Microsoft establish a partnership around Windows–SUSE Linux interoperability, virtualization, management, and intellectual-property arrangements.

  • 2000

    Novell acquires SUSE

    [1]

    The acquisition brings SUSE Linux into Novell and supports a shift toward Linux and heterogeneous enterprise infrastructure.

  • 1994

    WordPerfect acquisition

    [1]

    Novell acquires WordPerfect and related software assets but struggles to integrate them into a successful Microsoft competitor.

  • 1993

    Unix System Laboratories acquisition

    [1]

    Novell acquires Unix System Laboratories and adds Unix assets to its enterprise software portfolio.

  • 1991

    Digital Research acquisition

    [1]

    Novell acquires Digital Research as part of a broader platform-expansion strategy.

  • 1989

    NetWare 386 launches

    [1]

    The 386-generation release improves NetWare’s architecture and takes advantage of Intel 80386 systems.

  • 1989

    Excelan acquisition

    [1]

    Novell acquires Excelan, adding Ethernet hardware and TCP/IP networking expertise.

Products and positioning

Enterprise infrastructure and networking software focused on secure file and print services, directory services, identity, collaboration, Linux, and heterogeneous-system interoperability.

  • Network operating system · 1983

    NetWare

    Novell’s defining product was a dedicated network operating system for PC servers. NetWare supplied centralized file and print services, user and group permissions, volume and file access controls, directory functions, and support for heterogeneous clients. Its performance on contemporary Intel hardware and its integrated IPX/SPX networking protocols helped it become the leading PC network operating system during the late 1980s and early 1990s. Later versions added stronger directory, TCP/IP, management, and application-server capabilities.

  • Directory and identity management · 1993

    Novell Directory Services (NDS) / eDirectory

    NDS, later called eDirectory, provided a distributed directory for representing users, groups, devices, applications, and access rights across enterprise networks. It extended Novell beyond file and print services into identity administration and centralized policy control, and it was designed to operate across mixed platforms and organizational structures.

  • Enterprise messaging and collaboration · 1990

    GroupWise

    GroupWise was Novell’s enterprise messaging, calendaring, contact-management, and collaboration platform. It served organizations that wanted an integrated alternative to separate email and scheduling systems and was closely associated with Novell’s broader directory and systems-management products.

  • Enterprise Linux · 2004

    SUSE Linux Enterprise

    After acquiring SUSE, Novell marketed enterprise Linux products and support as part of a strategy to address modern data centers and mixed Windows–Linux environments. SUSE gave Novell an open-source operating-system platform and a route into Linux server infrastructure as NetWare declined.

  • Systems and endpoint management · 1998

    ZENworks

    ZENworks was a family of systems-management products for software distribution, configuration, endpoint administration, asset management, and policy enforcement. It represented Novell’s effort to provide centralized management across desktops, servers, and heterogeneous enterprise environments.

  • Network protocol · 1983

    NetWare Core Protocol

    NCP was the application-level protocol used by NetWare clients and servers for services such as file access, printing, directory operations, and administration. It formed a core part of Novell’s proprietary networking ecosystem before broader TCP/IP-based enterprise networking became dominant.

Controversies

  • 2006

    Controversy over the Microsoft–Novell agreement

    Parts of the free-software community criticized the partnership’s patent and intellectual-property provisions and the structure of Microsoft-supported SUSE Linux subscriptions. The controversy centered on concerns about unequal legal protection and possible effects on software freedom.

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Marketing campaigns

  • 2006Novell–Microsoft Interoperability Partnership

    Global enterprise software markets

    Novell and Microsoft promoted interoperability between Windows and SUSE Linux, including joint work on virtualization, systems management, and mixed-environment deployment. The arrangement also included Microsoft-backed distribution of SUSE Linux subscriptions.

    Outcome. The partnership gave Novell a high-profile enterprise interoperability position but did not reverse the long-term decline of NetWare or restore Novell’s former market dominance.

Brand decisions

  • 2011

    Sale to The Attachmate GroupM&A

    Background

    Novell had not regained its former networking dominance and was pursuing a portfolio-based enterprise software strategy.

    Action taken

    The Attachmate Group acquired Novell and made it a wholly owned subsidiary.

    Aftermath

    Novell ceased to be an independent public company; its products continued under subsequent corporate owners.

  • 2006

    Windows–SUSE Linux interoperability agreementStrategy

    Background

    Many enterprise customers operated both Microsoft Windows and Linux systems, limiting the appeal of a purely platform-centric strategy.

    Action taken

    Novell partnered with Microsoft on interoperability, virtualization, management, and intellectual-property matters, with Microsoft supporting SUSE Linux subscriptions.

    Aftermath

    The agreement improved the visibility of Novell’s mixed-environment strategy while provoking free-software criticism and failing to restore NetWare’s former position.

  • 2000

    Acquisition of SUSEM&A

    Background

    The growth of Linux and the decline of proprietary network operating systems required Novell to broaden its infrastructure strategy.

    Action taken

    Novell acquired SUSE and incorporated enterprise Linux into its product portfolio.

    Aftermath

    SUSE became central to Novell’s Linux and interoperability positioning and later passed through Attachmate, Micro Focus, and OpenText ownership.

  • 1994

    Acquisition of WordPerfectM&A

    Background

    Novell attempted to challenge Microsoft across both networking and personal-computer productivity software.

    Action taken

    Novell acquired WordPerfect and associated software assets.

    Aftermath

    The acquisition did not produce a sustainable integrated competitor to Microsoft Office, and Novell later divested the business.

  • 1989

    Acquisition of ExcelanM&A

    Background

    Novell needed stronger Ethernet and TCP/IP capabilities as enterprise networking moved beyond proprietary protocols and hardware.

    Action taken

    Novell acquired Excelan and integrated its networking technology and leadership into the company.

    Aftermath

    The deal strengthened Novell’s Internet-protocol and Silicon Valley presence.

  • 1983

    Shift from hardware to network softwareStrategy

    Background

    Novell Data Systems’ microcomputer and peripheral business was underperforming, while networking work from SuperSet Software showed stronger commercial potential.

    Action taken

    The reorganized Novell concentrated resources on a network operating system and moved the product toward IBM-compatible PCs.

    Aftermath

    The decision created the NetWare franchise and made Novell a major enterprise software company.

Recent events

  • 2023

    OpenText acquires Micro Focus[1]

    M&A

    Micro Focus was acquired by OpenText, bringing former Novell products and technologies into OpenText’s enterprise software portfolio.

  • 2014

    Micro Focus acquires The Attachmate Group[1]

    M&A

    Attachmate and its Novell subsidiary became part of Micro Focus International.

  • 2011

    The Attachmate Group acquires Novell[1]

    M&A

    Novell was acquired by The Attachmate Group and became a wholly owned subsidiary, ending its independent corporate existence.

  • 2006

    Novell and Microsoft announce interoperability partnership[1]

    Other

    The companies announced a broad agreement covering Windows and SUSE Linux interoperability, virtualization, management, and intellectual-property issues. Microsoft also agreed to distribute SUSE Linux subscriptions.

  • 1994

    Novell acquires WordPerfect[1]

    M&A

    Novell purchased WordPerfect and related office-software assets, but the combination did not successfully displace Microsoft’s productivity software position.

  • 1993

    Novell acquires Unix System Laboratories[1]

    M&A

    The transaction brought Unix intellectual property and operating-system assets into Novell’s portfolio during its attempt to challenge Microsoft across multiple software layers.

  • 1991

    Novell acquires Digital Research[1]

    M&A

    Novell acquired Digital Research as part of an effort to broaden its operating-system and software platform portfolio.

  • 1989

    Novell acquires Excelan[1]

    M&A

    The acquisition added Ethernet networking and TCP/IP expertise and strengthened Novell’s presence in Silicon Valley.

  • 1983

    Novell incorporates under its shortened corporate name[1]

    Other · Leadership change

    Novell Data Systems was reorganized and incorporated as Novell, Inc., with Ray Noorda subsequently announced as president and chief executive.

  • 1983

    NetWare becomes Novell’s central networking product[1]

    Product launch

    Novell shifted its emphasis from unsuccessful proprietary computer hardware toward a network operating system for IBM-compatible personal computers.

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