Frankenberg to leave Novell

The two-year reign of Robert Frankenberg at the top of Novell was spent refocusing the company back on its strengths in the LAN market just as a new technology wave--the Internet--shattered previous assumptions about networking.

The Internet explosion left Novell (NOVL) in a reactive position, just as it was getting its house back in order after two ill-fated acquisitions by previous Novell CEO and founder Ray Noorda. Ironically, as the company's core competencies--network-based computing and directory services--were getting the internal attention they deserved, a new network paradigm was taking hold, based on an easy-to-use interface.

In recognition of these realities, Novell's board of directors announced the resignation of Frankenberg today, surprising some observers and leaving the company with no heir apparent waiting in the wings.

John A. Young, a member of Novell's board and past president and CEO of Hewlett-Packard, has been named chairman of the board. Joseph Marengi, a Novell executive vice president, has been named president. Frankenberg served as president, CEO and chairman of the board.

The board announced it has started a search to find Frankenberg's replacement but his eventual successor will take over a company that will have to get used to lower expectations in the new Internet era, according to industry observers.

Young said the Novell board and Frankenberg agreed that it was the "right time" for Frankenberg to step down. Young called Frankenberg's tenure "a difficult time" for Novell as it jettisoned products and focused on its company strengths. Young would not address rumors that a Frankenberg family illness was one reason for his departure.

"It appears to be another period of turmoil for the company, but it truly is not," explained Marengi, referring to the executive team that remains intact.

Marengi and Steve Markman, executive vice president of Novell's products group, both said what have been lax Novell marketing efforts will change under the new regime, an indication that the Novell braintrust may not have been pleased with Frankenberg's efforts in that area.

"Whoever comes in has significant obstacles," said Neil MacDonald, an analyst at the Gartner Group research firm. "Novell is not going to be this huge $2 billion company over the course of the next four years."