Novell technology contributed to the emergence of local area networks (LAN), which displaced the dominant mainframe computing model. Today, Novell's primary focus is on developing open source software for enterprise clients. A multi-platform network operating system called NetWare was one of Novell's first products. The software used Novell DOS, formerly known as DR-DOS, as a boot loader. Ethernet cards, which were expensive at the time, did help the company grow and develop additional products like GroupWise, BorderManager and Novell Multi-Protocol Router.

AT&T's Unix Systems Laboratories, which was acquired in June 1993, gave Novell the rights to the UNIX operating system. Novell did buy WordPerfect and Quattro Pro in 1994 in attempt to better compete with Microsoft. The company sold both products only two years later to Corel and DR-DOS to Caldera Systems. Eric Schmidt, today head of Google, laid the groundwork to move Novell towards the Internet in 1997.

In an attempt to stop sliding sales, Novell tried to focus more on services and hoped that the acquisition of Cambridge Technology Partners in July 2001 would help. Shortly thereafter, Novell started to move into Open Source and Enterprise Linux. Ximian was acquired in August 2003, and SuSE followed 3 months later. In November 2004, Novell released the Linux-based enterprise desktop Novell Linux Desktop, based on Ximian Desktop and SUSE Linux Professional 9.1. SUSE Enterprise Server, released in March 2005, was Novell’s attempt to move current NetWare customers to Linux. In August 2006, the SUSE Linux Enterprise 10 (SLE 10) series of products were released.

A joint patent agreement between Microsoft and Novell, aimed to cover their respective products, scared many Linux users and resulted in reviews, open letters, and protests. While Novell adapted the OpenXML/ODF Translator for use in OpenOffice as a result, many feel that the agreement has come at the expense of long-term value and goodwill within the open-source community.

Today, Novell continues to sell support for its SUSE Enterprise Linux products, while German based openSUSE functions as the testing ground and distributes current version 11.2 freely under the GNU license.  Product development, sales, and services form the pillars for Novell now.

If the reports are true and Novell finally accepts a buyout bid, the company may not continue in its current form. Several reports suggest a scenario where it could be broken apart. Nobody really knows what this means for the open source community. A recent note on its website suggested that the openSUSE office in Nuremberg, Germany used an open house to refocus on its future strategy.

"There are 20 million versions of Linux running around the world," so SCO chief executive Darl McBride in an interview with the Associated Press. "Linux at the end of the day is a knock off of our Unix." SCO said the ruling paves the way for resumption of the court case.

In 1995, SCO Group bought the Unix operating system from Novell for $149 million. But it was not clear which company owned the copyrights, and years of litigation ensued. SCO Group filed for bankruptcy two years ago after a Utah federal judge said SCO Group was not the owner despite the $149 million deal.

A three-judge panel of the 10th U.S. Circuit Court of Appeals ruled that the judge erred in August 2007 by granting the copyright to Novell. The panel ordered a trial to determine ownership.