NOVELL, HEWLETT PACKARD FORGE NETWORK SOFTWARE DEVELOPMENT ALLIANCE

Hewlett-Packard Co. and Novell Inc. say they have reached an agreement under which the two will develop and market new computer networking technology. The first project will be a version of Novell NetWare for H-P's Precision Architecture microprocessors.

NetWare is already available for many computers, but runs on top of operating software, rather than directly on microprocessor chips. The new NetWare will permit H-P computers to communicate very efficiently with other computers in a network.

The new agreement also calls for H-P to distribute all Novell products through the extensive Hewlett-Packard direct sales force. Other projects include integrating H-P's network management software into future Novell products, creating a NetWare version for the HP-9000 computer, and development of printing equipment tailored to work with Novell network software.

John Young, the H-P CEO, says the agreement also includes about 25 other projects "aimed at making networks work better, more friendly and easier to maintain." Novell CEO Raymond Noorda said the new alliance will strengthen Novell's financial position.