Novell's "Clear Channel" Initiative Solidifies Importance of Channel in its Go-to-Market Strategy

• Solution Providers, Consultants and Integrators Are Key For Delivering Novell-Based Solutions for Customers' Complex IT Challenges
• Clear Channel Initiative Founded On "Named Account/Named Partner" Model
• Novell To Focus On Channel Partner Co-Engagements For Success In 2002

Novell, Inc., a leader in eBusiness solutions and Net services software, today announced Clear Channel, an initiative designed to accelerate sales of Novell based solutions by enhancing the company's go-to-market strategy with channel partners. Clear Channel focuses on two ways to improve how the company and its partners deliver solutions to customers. First, Novell is clearly identifying those customers and partners with whom it will work closely to maximize the value of Novell solutions. Second, Novell is executing co-engagement plans to promote delivery of Novell technologies with partners at the level of engagement chosen by the partner. This Clear Channel initiative provides clarity to partners and positions Novell to more rapidly and efficiently deliver eBusiness solutions to customers in all market segments

"Our focus in 2002 will be to provide solutions through our channel partners in a 'sell with' approach, in addition to our traditional 'sell through' model," said Jack Messman, CEO for Novell. "We built this business on the channel and are committed to delivering not only products but solutions with our channel partners. Over the last two years, the traditional model for distributing software has shifted as companies are now looking for solutions and not just products. The Clear Channel initiative will provide our partners a clear understanding of how they can grow their business with Novell's Net services software, coupled with their services. Since Novell's one Net vision depends on partners who understand how to deliver solutions to customers based on secure, reliable, and cost effective Net Services software, Novell will provide partners with the tools they need to succeed."

Dave Brockelman, president of Strategic Network Consulting, a Platinum solution provider partner in Houston, is enthusiastic about Novell's direction. "Novell's Clear Channel initiative demonstrates the strength of Novell's commitment to make one Net a reality for consumers through their co-engagements with solution providers and integrators like us. We see clear synergies stemming from Novell's vision and Net Services software, and my business with Novell has never been better. Through their

continued commitment to the one Net vision and renewed commitment to their partners, Novell is setting new standards for our industry."

Named Accounts/Named Partners Model

The foundation of the Clear Channel initiative is Novell's commitment to sell to "named accounts" and sell with "named partners" who choose to engage with Novell. Partners will self-select the level of partnering they want. Novell and its global eBusiness services division, Cambridge Technology Partners, will target sales and consulting efforts to named accounts that are primarily comprised of Fortune 500 and Global 2000 organizations. These named accounts will be published to named partners on a local basis.

Novell will work with top solution providers and integrators in measurable "sell with" relationships. These partners will receive high level sales and technical support, will be assigned an account manager, and will receive training necessary to succeed. Novell's internal management and compensation plans will provide rewards for selling with and supporting channel partners. In addition, Novell will continue to provide information and training to a broader base of over 20,000 other 'sell through' channel partners who choose to participate at a different level of partnering.

The opportunity for partners is vast. According to industry data, the markets for Server Operating Environments, Enterprise System and Desktop Management, Collaborative Application and Security, all of which Novell plays in, will top $40 billion this year, and reach almost $65 billion next year. Further, this does not include the services revenue channel partners see as part of the sale (source: IDC).

Solution Provider and Consultant Partner Co-engagement

Novell's Clear Channel initiative calls for rapidly increasing the number of co-engagement customer wins with solution provider, consultant and integrator partners. This will include the sharing of technology and methodologies from recently announced "Jump Start" solutions. In 2001, the number of mutual sub-contracting agreements with solution providers has grown more than 600 percent to over 200 partners benefiting from the synergy achieved by working with Novell Consulting. Actual co-engagements have increased ten fold in the same period. Through these sub-contracting agreements, Novell and its partners are engaged to more effectively create customer demand and solve customer problems.

In addition to joint opportunities with solution providers, Novell's Clear Channel initiative will foster joint business in vertical markets with large system integrators through its Consulting and System Integrator (CSI) program. Through companies like Computer Sciences Corporation, Cap Gemini Ernst& Young, Deloitte& Touche, KPMG Consulting and PricewaterhouseCoopers, solutions are developed and deployed that require integration of business applications into very large or extended enterprises. These are solutions that Novell could not build without the help of partners. Alliances with these very large system integrators give Novell yet another value delivery path in its go-to-market strategy.

Another element of Novell's Clear Channel initiative will be the announcement of PartnerNet 2002 in January. This program gives details of how, and at what level channel partners participate with Novell in the coming year. For more information about Novell's Clear Channel initiative and the PartnerNet Program, partners may visit: http://www.novell.com/channel/.

About Novell

Novell, Inc. (NASDAQ: NOVL), is a leader in eBusiness solutions and Net services software designed to secure and power the networked world. Novell and its eServices division, Cambridge Technology Partners, help organizations solve complex business challenges, simplify their systems and processes, and capture new opportunities with one Net solutions. Novell provides worldwide channel, consulting, education and developer programs to support its offerings.

For information on Novell's complete range of products and services, contact Novell's Customer Response Center at (888) 321-4CRC (4272), or visit Novell's Web site at http://www.novell.com. Information on eBusiness and integration solutions from Cambridge Technology Partners can be accessed at http://www.ctp.com. Press may access Novell announcements and company information on the World Wide Web at http://www.novell.com/pressroom.

Novell is a registered trademark of Novell, Inc. in the United States and other countries. Cambridge Technology Partners is a registered trademark of Cambridge Technology Partners, Inc. * All third-party trademarks are the property of their respective owners.