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08 Nov 2006
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.
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Do you agree?
Microsoft vs Linux tax
Well, maybe we will finally get a Microsoft made Linux Multimedia Player now that actually plays all or most of the multimedia formats that exist on the Internet. If Linux is going to compete with a full on multimedia world -- then it's going to have to have a multimedia player that works or it isn't going to survive. So far - Linux has done well because of the geeks of the world have fostered it's creation. But, now that it's built - what can you do with it? You can type, draw pictures and do some network utility stuff. But, when it comes to heavy duty making PDF's, playing all sorts of MPEG formats, playing WMF from Microsoft or watching movies such as the MP3's we get from everywhere - it happening. With Microsoft supporting Linux - they will turn it into a true multimedia software useful on desktops. All the once useful softwares that did the Linux multimedia have been extracted and support for them has been stopped - due largely to patent infringement. Let Microsoft do some contributing to the OS and pay them a $100 bucks per OS and have the multimedia, too. 80 percent of PC buyers want multimedia -- and they don't get it with Linux. Not as easy and as good as with Microsoft. Next - let's discuss Active Directory. When Linux companies have melded NFS, NIS, Samba, openLDAP2 and IPSEC together like Active Directory and make it as easy to use and understand -- then Linux will be good for "all" the Server Rooms. In my opinion - that ain't going to happen unless someone (Microsoft) gets involved and puts in the money and is able to match Active Directories creation -- instead of having to reverse engineer AD and make mistakes. Linux sucks for securing a medium to large network unless you are an engineer with 7 years of university which people with MCSE, MCSA and CCNA are mostly not. Let's get real. LDAP, NFS, NIS andSamba are great - it would be so much better if they were all combined for admin under one program like Active Directory? I think so!
Posted by: Miles Bradford 26 May 2007
Not the end, but pruning shears, yes
"If only more people out there were more adventurous with their home computers, and, seeing the light of freedom, then argued for their companies to go Linux not Windows... " Amen to that Dave, I ditched Windows a short while ago. I was surprised how easy it was, none of that "pay licence fee" or "buy this" with Ubuntu. It seemed to find and install peripherals automatically. As I was 78 in March, it makes me wonder if the younger "know it all's" really do?
Posted by: Ellis 15 Apr 2007
Is this the END for Microsoft?
On the contrary, this signals what I have long thought- MS is running scared of Linux. If only more people out there were more adventurous with their home computers, and, seeing the light of freedom, then argued for their companies to go Linux not Windows... you can't patent 0s and 1s...
Posted by: dave massingham 13 Nov 2006
Microshaft
just what we need a company to sell something that is free. what will they charge? well the buggy POS server 2k3 is close to $500. wonder what they will charge for something that actually works and is stable??? 4.5mil a copy? oh wait it includes office lets make it 3.5 billion! suse should have sold 4 more =P
Posted by: mtx1 09 Nov 2006
Wow!
way to go MS! I am gonna try Linux for the first time for my regualar use if its YOU who is marketing it! it will be a lot more easier i feel.. AND.. if its paid... i wont mind shelling money cuz i guess it will be a lot cheaper than windows!
Posted by: Digigeek2000 08 Nov 2006
Sick
That deal just turns my stomach. Microsoft can't think of ONE original idea. If an idea appears promising, copy it or buy it out. Linux-BUY OS X-COPY As if the IT industry hasn't been stuffed up enough by Microsoft.
Posted by: Name Withheld 08 Nov 2006
Linux is dead?
Could this partnership mean the beginning of the end for Linux?
Posted by: dsd 08 Nov 2006