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.

Tags:

reader comments

related articles

 

Nikon snaps patent deal with Microsoft

Camera maker to license Microsoft code 28 Aug 2008

Microsoft and Novell talk up collaboration success

Firms issue glowing progress report and new tools 11 Jun 2009

Micron takes $400m stake in Inotera

New investment to offset job cuts 13 Oct 2008

related whitepapers

today's top stories

How to maximise the value of your IT networking investment

A panel of experts discuss networking strategies that deliver real value to business 03 Jul 2009

Habitat gets a web site makeover

The furniture retailer is revamping its online presence to provide a fully transactional web site. CIO Jacques Dekock explains why 02 Jul 2009

Government aims to bolster UK's cyber defences

Is the UK’s first national cyber security strategy up to the task of co-ordinating the country’s response to digital threats? Computing investigates 02 Jul 2009

Focus resources on what really matters

IT has become too caught up in the drive for efficiency, at the expense of business success 02 Jul 2009

From tracks man to tax man

Phil Pavitt, outgoing chief information officer for Transport for London, talks to Rosalie Marshall about the lessons he will take to his new role at HMRC 02 Jul 2009

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

More available - click 'submit' to view

Existing User

Newsletter user login:

Advertisement

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

White papers

Search white papers

Top categories

VPN, Extranet and Intranet Solutions

WAN/ LAN Solutions

Network Security

Interoperability-Connectivity

Grid/ Utility Computing

Latest poll

Would you use social networking sites to look for a job?

Would you use social networking sites to look for a job?

Tell us what you think about job hunting through LinkedIn, Facebook, Twitter etc

View poll results

Latest audio and video articles

network cablesVideo

How to maximise the value of your IT networking investment

A panel of experts discuss networking strategies that deliver real value to business 03 Jul 2009

green footprintsVideo

How to manage enterprise energy use - and the role IT can play

A panel of experts explore how firms can get to grips with their carbon footprint and make smarter use of energy 01 Jul 2009

Latest in-depth articles

Phil PavittAnalysis

From tracks man to tax man

Phil Pavitt, outgoing chief information officer for Transport for London, talks to Rosalie Marshall about the lessons he will take to his new role at HMRC 02 Jul 2009

UPS worker making a deliveryAnalysis

Global standardisation delivers benefits at UPS

Delivery giant sees benefits of central IT solution 02 Jul 2009

Advertisement

Primary Navigation