Bill Gates and Linux penguin
Microsoft has stated that it will not enter into any similar agreements with other Linux vendors

Microsoft pays Novell $308m for exclusive Linux partnership

Deal makes SuSE desktop and server products the only Linux distribution approved by Microsoft

Written by Tom Sanders in California

Novell is to receive up to $308m from Microsoft in the coming years as part of a partnership agreement signed last week.  

Novell disclosed the financial details in a filing with the Securities and Exchange Commission on Tuesday. 

Microsoft and Novell unveiled a technical, sales and intellectual property partnership last week that expires on 1 January 2012.

The deal effectively makes Novell's SuSE desktop and server products the only Linux distribution approved by Microsoft.

Under the terms of the partnership, Microsoft will distribute an estimated 70,000 coupons to its customers each year entitling them to a free multi-year subscription to Novell's SuSE Linux Enterprise Server.

Microsoft will pay $240m for these coupons which it can either sell or give away.

Microsoft has also committed to spending $12m annually over the course of the agreement to market Linux and Windows virtualisation.

The company will invest $34m over the entire period on a dedicated salesforce to market the combined offering.

The Linux partnership is exclusive, and Microsoft has stated that it will not enter into any similar agreements with other Linux vendors.

The two software makers have also signed a patent cross-licensing deal to ensure that Microsoft will not enforce any of its patents against SuSE users and developers.

Because the cross-licensing deal covers more Microsoft installations than Novell users, Microsoft will make a one-time payment of $108m.

Novell is required to pay Microsoft a percentage of future software sales with a minimum of $40m over the next five years.

Novell did not provide any financial details about the technical collaboration. The pair will create technologies to make SuSE and Windows " guests" on each other's operating systems, as well as create standards to manage systems in heterogeneous environments.

Microsoft and Novell have also committed to developing a translator technology that enables interoperability between Microsoft's Open XML document format and the Open Document Format.

  • Have your say
  • Send to a friend
  • Print this
  • Share

Tags:

reader comments

related articles

 

Microsoft and Novell talk up collaboration success

Firms issue glowing progress report and new tools 11 Jun 2009

Novell toolkit aims to help ISVs build code

SUSE Appliance Toolkit takes cloud services on-premise 27 Jan 2010

Microsoft touts its open document credentials

New project seeks to eliminate Open XML confusion and build interoperability 18 May 2009

related whitepapers

today's top stories

Police hunt for moles with security software

Lancashire Constabulary to monitor data input of 7,000 staff in bid to prevent intelligence leaks 09 Feb 2010

PaperlinX outsources IT and comms to Bull and BT

Paper company spends €22m on five-year deal for desktop management, helpdesk and datacentre services 05 Feb 2010

Social tools take KM to a new level

Technology expert David Tebbutt explains how – and why – organisations should integrate social networking tools into their knowledge management strategy 02 Feb 2010

EDS court defeat puts vendors on their guard

BSkyB’s victory in a long-running court case against EDS has serious implications for the IT industry 02 Feb 2010

Law firm monitors web traffic violations

Bucks declining global security appliance sales with unified threat management (UTM) platform deployment 01 Feb 2010

Advertisement

Security: The New Face of Intrusion Prevention
An outline of traditional IPS functionality, modern developments and how IPS can be deployed easily.

UK businesses’ attitudes to Cloud Computing revealed

Features results from a survey of over 200 Computing readers.

Advertisement

Keep up to date with the latest products, services and technologies from the world's leading IT companies; ITHound.com brings you over 6,000 white papers, case studies and analyst reports.

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

More available - click 'submit' to view

Existing User

Newsletter user login:

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

Latest poll

Internet Explorer 6

Internet Explorer 6

Following recent concerns about the security of Internet Explorer 6 are you planning to phase it out?

View poll results

Latest audio and video articles

Tony McAlisterVideo

Video Q&A: Tony McAlister, CTO, Betfair - Part one

On changing the skills development strategy at the online gambling firm - part one of a two-part video interview 05 Nov 2009

Video

Nokia shows upcoming handset technologies

Mobile phone features of tomorrow take the stage 21 Oct 2009

Latest in-depth articles

Analysis

Police hunt for moles with security software

Lancashire Constabulary to monitor data input of 7,000 staff in bid to prevent intelligence leaks 09 Feb 2010

Businessman with eye patch, dagger and tie round head, sitting at laptopFeatures

Are you sure you're not a pirate?

It is alarmingly easy for an IT leader to unwittingly exceed the scope of a software licence, and the chances of being caught out have never been greater, as technology lawyers Mark Weston and Paul Gershlick explain 09 Feb 2010

Primary Navigation