The result of these trends and the deployment of new desktop computing resources is that organizations and MIS planners can begin focusing on delivering real "client-oriented" solutions, evaluated against the "real" business benefit. Users of most desktop software, which includes productivity, customized applications and even operating systems will soon have more choices about what to run where than ever before. The days of close links between applications, operating systems and microprocessors are fading, and in its place are applications everywhere.

As this new philosophy matures, the specific applications an organization utilizes will become a less important factor in choosing an operating system. In its place will be the focus on price/performance of the system hardware and the application developmental capabilities of the system software. In short, the classical distribution function of facilitating and implementing computer-related solutions will not change. However, the offered product suites, and their successful integration into existing corporate computing environments, will require an expanded engineering service organization.

Computer-Related Solution Services on the Rise
Technology management and network implementation consulting services, represent the fastest growing sector of budgeted corporate expenditures, and the demand for computer-related solutions reflect that continued growth. The US. department of commerce estimates that the allocated monies spent throughout the business community for computer related professional services approached $52.2 billion in 1993, up 17.3% from 1992, of which $18.8 billion were derived from computer-related consulting and knowledge transfer services. These expenditures represent the greatest effect on raising or lowering overall profitability and productivity throughout the business community. Every organization has felt the effects of improper deployment of various information technologies and now must regain control of their deployment and utilization.

Rapidly Expanding Industry
Network related consulting services is a rapidly expanding industry, due to the increased adoption of the connected corporate personal computing environment, coupled with the technological trends to develop and deploy an open computing model consisting of cognate operating systems and software. This industry trend, has overwhelmed corporate MIS organizations, causing them to look more often to outside organizations for both additional staff and specific technical knowledge. This excess demand has created a state of flux within the industry, with traditional industry market leaders, such as EDS, Andersen Consulting and others scrambling to enhance their offerings to meet client needs.

Open Competitive Environment
Currently, the level of service is broadly uneven, and service providers enter and leave the field rapidly. With the traditional market leaders restructuring their offerings and computer manufacturers restructuring their distribution models, much of this marketplace remains unserved. Projections indicate that by 1995 the network implementation market will experience a rate of growth of 61 percent for organizations which have $1 billion in revenues and 82 percent for organizations of lesser size. This rapid adoption leaves organizations searching for reputable and stable service providers. The research has also predicted that this rate of adoption will increase upwardly to 120 percent as the global marketplace becomes integral to corporate operations.

Although many vendors have entered and left this market place, five of them have continued to dominate. Novell, IBM, Microsoft, DEC and Banyan continue to offer enhanced features, functionality and new products.

Current Market Share Posture
Novells' Netware has maintained dominance over the other four vendors. Novells' success can be traced to their early embrace of the networking philosophy. Novell (once know as InfoShare) gained dominance by providing a specialized operating system (Netware 4.06 - CPM based) which could deliver higher performance for file and print services than that of DOS-based networking technologies (such as IBM PCLP). By the late 80s, Novell had continued to enhance their offerings, performance, and host emulation and had began addressing issues of fault tolerance and disaster recovery. These enhancements were the catalyst in positioning the personal computer, along with the LAN, as a vital part of the corporate computing utility.

It was not until the development of IBMs OS/2 operating system that IBM competed with Novell. OS/2 began gaining market recognition in the late 80s and into the early 90s. IBMs LAN Server along with Microsofts LAN Manager began gaining market. This is especially true within organizations which depended upon IBMs mainframe and SNA strategies.

Digital Equipment (DEC), depended upon the mutual mind share of David Colter (DECs co-developer of PathWorks and VMS) and Microsofts LAN Manager. This was specifically dedicated towards integrating personal computer workstations into DECs proprietary DecNet protocols. This connectivity, while superior for DECs operating environment, lacked the functionality and open integration required for other vendors (such as IBM hosts, existing Netware networks). This is reflected in their market share position of 5.5 percent.

Microsoft began its entry into the network operating system industry by purchasing 3COMs network operating system division in the late 80s. 3COM migrated their 3+ family of networking software to Microsofts OS/2 operating system. 3+Open was not well received and 3COM was forced to again re-focus their attention to their core business (the manufacturing of network distribution equipment). The 3+Open family was short lived and was quickly replaced by Microsofts LAN Manager based products.

Banyan has always focused upon the UNIX operating system environment. Although their product, VINES, provided functions which were difficult to support by any other operating system (other than UNIX and host operating systems), such as global naming and global directory services, Banyan did not have the capital or market awareness to compete against Novell, Microsoft and IBM. Banyan was readily accepted in the government market, however, this lack of marketing direction and exposure would not allow them to gain widespread recognition in the corporate computing industry.

NOS Technology Trends
While recognizing the past accomplishments and marketshare holdings of the above mentioned leaders in the network operating systems arena, one must address the platform trends and attempt to forecast the effects on their posture. Although crystal ball analysis represents best guess estimates, one should be able to identify factors which have historically proven valid.

Historically, network operating systems were required because of the lack of depth in the operating systems typically found at the desktop. DOS could not support the connectivity requirements of multi-processing, multi-tasking to service hundreds of attached devices. Netware is a great example of why a specialized operating system was developed to answer this performance issue. However, one must look at the trends associated with the operating systems now appearing at the desktop.

OS/2, Windows NT, and UNIX are now appearing on the desktop. As explained above, new enabling processors such as the MIP, RISC and Intel super processors, can take advantage of new, more fully-featured operating systems. These more powerful operating systems will allow the desktop to communicate with the network more efficiently. This trend is supported by the coupling of network or connectivity-related components (i.e. network drivers, communication software) within the bundled operating system. NT as an example, contains all of the required software components to communicate to a network. During setup, NT is simply informed to attach itself to the network; unlike Novell workstations, where one must load additional software components before attaching to the network.

The result of this trend is that the classical need for a separate network operating system is becoming less important. The network file server, communication server and eventually the application servers will run the same operating system which is used by the end-user. Only specific application modules will be required on those server devices. The separation between workstation operating systems and network operating systems is fading away and in its place is a cognate operating environment between all connected devices. This will allow software developers and network planners to focus upon price/performance issues rather than compatibility and portability issues.

What Does This Mean ?
The currently held market share and technologies provided by both Novell and Banyan will be required to address these more fully featured operating systems. Banyan has already began to address this issue. Both Novell and Banyan will become more of a computing environment, rather than a computing operating system. That is, Novell will transform Netware from an operating system which is simply loaded on a file server to a service application which can be loaded on file servers running NT, UNIX or OS/2. This will provide Novell file and print services, naming conventions, directory services and compatibility to a large existing install base, while taking advantage of the more powerful, fully featured operating systems.

This will have a dramatic affect on their market share posture. It is expected that part of Novells market share will give way to increases by Microsoft and IBM. This is not to say that Novell will soon be no longer, but rather positions Novell as a different type of provider. They will evolve into an environment provider, not a specific operating systems provider. This trend is supported by moves by both Novell and Banyan to provide a more portable version of their naming and directory services.

The bottom line of these trends are that additional considerations must factor into choosing the networking environment. More attention needs to be applied to the strategic business posture and directions being taken in software development and deployment. Operating system selections must now include both workstations and server devices. This requirement will become more appearent as the client/server, messaging and desktop imaging markets mature.

Barriers to Entry
The current shortage of experienced technical personnel, and the costs of ongoing technical education, inhibits companies from entering or staying competitive in the growth areas of the professional services field. Additionally, the rapid pace of technology evolution requires strategic relationships with the manufacturers creating the technology. These relationships are crucial to a professional services firm in terms of receiving information and training on current and future product releases.

However, for the distribution/reseller segment of the industry, this has been a formidable barrier. Historically, the distribution network has placed their primary focus upon the facilitation and implementation of personal computing solutions; thus, limiting their exposure and knowledge of the remaining spectrum of the corporate computing model.