Novell enters high-end services marketplace

Novell is testing the waters of the lucrative high-end systems integration services business.

The company last week announced NDS Integration - a compilation of technology and customized integration services that synchronizes a Novell Directory Services (NDS) database with any PeopleSoft enterprise resource planning (ERP) applications. NDS Integration will only be available through Novell's Consulting Services arm.

By integrating NDS and PeopleSoft, network administrators will not have to maintain redundant employee directories and will have fewer passwords to manage. Additionally, the service lets end users maintain their personal employee records, which reduces the cost of database administration.

With this level of integration, an NDS user account is automatically created on the network when a new employee is added to the PeopleSoft system. The system then automatically provides access to generally available network resources, such as applications, printers and servers, without requiring net administrator assistance.

The move into the systems integration arena is a big leap for Novell. In the past, the company's technical and consulting services have been strictly limited to planning for and installing its own products.

Industry observers note that a foray into the services business is a necessary step in Novell's plan to push NDS as the connecting point for all networked resources, hardware and enterprise applications.

"A lot of shops would like an integrated directory, but they don't know where to start," says Jon Oltsik, an analyst with Forrester Research Group in Cambridge, Mass.

"Novell has an opportunity to use NDS as a lever into the world of directory enabling enterprise applications," Oltsik says.

Novell is planning to offer similar high-end integration services for other ERP installations, such as those based on SAP programs and customized database applications built on Oracle's Oracle8 databases, says Greg Hudson, vice president of Novell's Consulting Services.

But Hudson contends that this move toward services does not mean Novell has any intention of shutting out its traditional channel partners from large corporate accounts.

"We are looking at a full circle of services that will definitely include our channel partners," Hudson says. "We are the directory experts. We will still need the channel to help us with all the technologies that Novell doesn't have all the answers for."

Users are generally confident Novell will be able to become a formidable player as a services provider. They did express some concerns about the price tag for these new service offerings. For a 5,000-node network, NDS Integration for PeopleSoft has a base price of $40,000, with additional per-user and consulting fees tacked on top of that.

"Considering we're used to paying a lot less for Novell products and channel support, Novell's got a lot of explaining to do to justify that cost," says Steven H. Jones, IS manager for the city of Glendale, Ariz.

Jones beta-tested NDS Integration for PeopleSoft on his 1,200-node, 20-NetWare 4.11 server network.

Hudson defended the price of the technology/services offering by saying that $40,000 is a drop in the bucket for enterprise firms that are paying upward of $1 million for ERP applications.

Novell Consulting Services: (801) 861-3467