Microsoft, Novell expand Linux deal by up to $100 million
Microsoft on Wednesday extended its existing partnership with Novell with a pledge to pump up to an additional $100 million into the deal.
The companies, which announced an interoperability deal two years ago, said that Microsoft will purchase up to $100 million in certificates that its customers can redeem for Novell's Suse Linux service and support.
Microsoft CEO Steve Ballmer
(Credit: CNET)The new Microsoft investment will begin in November, the companies said.
The deal is centered on interoperability between Windows Server and Suse Linux Enterprise Server. The original deal, a five-year interoperability partnership inked in November 2006, called for Microsoft to buy $240 million worth of such certificates. Novell said that it has already invoiced more than $157 million in certificate revenue in 18 months.
The companies said that between now and November, they "will solicit customer input and identify aspects of the support programs that will be most useful to organizations running mixed-source environments."
The initial deal between the companies was roundly criticized by open-source advocates as conflicting with licensing provisions. Corporate customers, faced with the realities of making mixed-operating system environments work, have welcomed the deal. Microsoft and Novell said that customers taking advantage of the partnership include BMW, HSBC Holdings, Southwest Airlines, and Wal-Mart.
Mike Ricciuti joined CNET in 1996. He is now CNET News' Boston-based executive editor and east coast bureau chief, serving as department editor for business technology and software covered by CNET News, Reviews, and Download.com. E-mail Mike. 
Plus everyone would be clamoring for the ms linux, because it would instantly be considered the only standard version of linux, even if in fact, it was the only non-standard version of it.
this is a lot of money spent to keep a hands off approach to linux. MS, I think, is being quite sensitive to the open source community and there customers, with this type of move. Very thought out...not that I agree, I think an ms linux would be better.
I don't see the benefits to the community, its self servitude for those two companies nothing more. In truth though I have to painfully admit that MS is changing its tune to the Linux and is embracing it a bit more. Teaming up however with a notoriously closed minded company like Novell which also has a history of proprietary solutions doesn't send a warm fuzzy feeling. They should reach out beyond SuSe and approach some of the other Linux and UNIX flavors if their gesture is sincere to embrace the more open platforms.
I don't see the benefits to the community, its self servitude for those two companies nothing more. In truth though I have to painfully admit that MS is changing its tune to the Linux and is embracing it a bit more. Teaming up however with a notoriously closed minded company like Novell which also has a history of proprietary solutions doesn't send a warm fuzzy feeling. They should reach out beyond SuSe and approach some of the other Linux and UNIX flavors if their gesture is sincere to embrace the more open platforms.
- by rodneybliss August 20, 2008 9:46 AM PDT
- The people I've heard most opposed to this are open source devs or contractors. Maybe I'm mischaracterizing it, but that's what it seems like. Customers, on the other hand have been pretty happy with this arrangement. Guess it depends on what "community" you're polling.
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(6 Comments)In our org we run Linux, Windows, and NetWare. We're thrilled to see collaboration between MS and Novell. Absolutely, continue. Make it even easier for our systems to work together. I'm not really all that concerned with the OS wars. I'm very concerned with getting our business done. MS/Novell working more closely together help us do that.