Novell to Acquire Data Center Management Leader PlateSpin

Why did Novell acquire PlateSpin?
Customers need an agile IT infrastructure that immediately responds to changing business conditions allowing IT to become a strategic productivity center rather than a rigid cost center. At the same time, new levels of infrastructure complexity and heterogeneity are making it more difficult for IT to respond to its business users' requests. The planned acquisition of PlateSpin positions Novell to provide leading management solutions that allow customers to achieve data center operational efficiencies and power business. By adding PlateSpin’s leading solutions for workload lifecycle management to its portfolio, Novell now offers:

Virtualization for Windows, Linux and NetWare all on a single platform with world-class support.
Seamless Integration with existing physical and virtual Infrastructures with support for popular virtualization solutions and simplified management.
Policy-based workload balancing and lifecycle management solutions for managing both the physical and virtual environments.

What are the terms of the acquisition?
Novell acquired PlateSpin for $205 million using cash. PlateSpin will be integrated into Novell's Systems and Resource Management business unit. As part of this business unit, PlateSpin will continue to develop and market its solutions to a global customer base. This will be done through the continued operation of PlateSpin's Toronto facility, as well as through a combination of PlateSpin and Novell offices and facilities around the globe.

How will my business relationship with PlateSpin be affected?
PlateSpin and Novell are working closely to ensure that the integration of the two companies does not affect your business. PlateSpin will operate with few changes as we bring our product roadmaps and joint offerings to market. The PlateSpin product line will continue to be sold and supported as they are today through existing channels.

How will PlateSpin products be supported?
PlateSpin will continue to offer world-class technical support and training for its entire product portfolio. PlateSpin standard and premium support offerings will continue unchanged with global 24/7 support provided from its Toronto-based headquarters. You should continue to use the same support channels you have been using, whether online, phone support, or through your customer account team. Your support phone numbers, email addresses and website links remain the same.

What benefits can customers expect from the combination of PlateSpin and Novell?
First, Novell and PlateSpin can provide the freedom and agility to easily cross physical and virtual infrastructure boundaries to enable IT to work together and dynamically deliver the services business users need. By providing a unified workload management framework that includes an integrated virtualization platform and a management suite for balancing workloads between the virtual and physical worlds, Novell and PlateSpin deliver the visibility, flexibility and agility your IT systems need to respond to fluctuating business requirements. Our combined offering provides unparalleled support for today’s mixed infrastructure environments – enabling complete workload lifecycle management and optimization for Windows, UNIX and Linux in both the physical and virtual data center.

Second, the larger size and global reach of the combined companies will let us meet your demands more effectively. We can offer access to a full range of integrated enterprise solutions as you seek to optimize your data center and make your IT work together.

Third, customers can expect to see future investments in new development projects and the emergence of a robust, integrated solution set that brings together the strengths of both companies' talents and technologies

Will PlateSpin's key management team be staying?
All key PlateSpin management are staying through FY08 and many have accepted permanent employment at Novell. PlateSpin founder and CEO, Stephen Pollack, will take on the duties of VP, PlateSpin.

Are there plans to discontinue any PlateSpin products?
No. PlateSpin will continue to develop, market and sell their products and solutions.

How will the product portfolios be integrated over time?
Novell and PlateSpin have been working together for some time on a product integration strategy. No components will be immediately integrated. Novell and PlateSpin customers will benefit from continued development on each product line. An integrated product roadmap will emerge later in 2008 highlighting the entire suite of data center management products.

Will any PlateSpin or Novell product release cycles be affected?
No changes are anticipated at this time.

Will Novell change the way PlateSpin licenses and prices current products?
Not at this time.

What does the acquisition mean to current PlateSpin partners?
PlateSpin's current partner program is optimized for their product offerings and partner relationship management will remain with PlateSpin. The PlateSpin partner base will have the opportunity for new growth by joining Novell’s Global partner program, Novell PartnerNet.

How do I find out more?
PlateSpin customers may contact their current account representative for more information. Additional details and updates regarding this announcement will be available at www.platespin.com/novell/ and www.novell.com/platespin/.