Novell - History

History

Novell owes its beginnings to the Eyring Research Institute (ERI) in Provo, Utah. Dennis Fairclough, Drew Major, Dale Neibaur and Kyle Powell left ERI and took with them the experience and technology to found Novell. Fairclough was the member of the original team that started Novell Data Systems. Major, Neibaur and Powell went on to form SuperSet Software. Fairclough was the original founder of Novell, who was dismissed when Ray Noorda came to Novell. Major, Neibaur and Powell continued to support Novell through their SuperSet Software Group.

At ERI, Fairclough, Major, Neibaur and Powell worked on government contracts for the Intelligent Systems Technology Project, and gained an important insight into the ARPANET and related technologies, ideas which would become crucial to the foundation of Novell.

ERI spawned many high-tech spin-offs, including WordPerfect, Novell, and Dynix in computers and some in the military and communication areas that have all benefited the world. —Cleo Harmon, wife of the Founder and the Secretary of the President at Eyring Research Institute, The Life of Frank Carlyle Harmon, published 1999.

The company began in 1979 in Provo, Utah as Novell Data Systems Inc., a hardware manufacturer producing CP/M-based systems. It was co-founded by George Canova, Darin Field, and Jack Davis (Novell co-founder). Victor V. Vurpillat brought the deal to Pete Musser, chairman of the board of Safeguard Scientifics, Inc., who provided the seed funding. The micro computer that was produced by the company was comparatively weak against performance by competitors. In order to compete on systems sales Novell wrote a program to link more than one to operate micro computer together. The company initially did not do well, and both Davis and Canova left the firm. The Safeguard board then ordered Musser to shut Novell down. Musser contacted two Safeguard investors and investment bankers, Barry Rubenstein and Fred Dolin, who guaranteed to raise the necessary funds to continue the business as a software company. Novell's networking program could work on computers from other companies. They, along with Jack Messman, interviewed and hired Raymond Noorda. The required funding was obtained through a rights offering to Safeguard shareholders, managed by the Cleveland brokerage house, Prescott, Ball and Turben, and guaranteed by Rubenstein and Dolin.

In January 1983, the company's name was shortened to Novell, Inc., and Raymond Noorda became the head of the firm. Later that same year, the company introduced its most significant product, the multi-platform network operating system (NOS), Novell NetWare.