Microsoft is turning its partnership with Linux vendor Novell into a joint virtualisation offering.

The new programme will allow hardware vendors to offer Windows Server 2008 systems which also sport virtualised SUSE Linux Enterprise Server software.

The Novell Linux package will run on the server by way of Microsoft's Hyper-V virtualisation software.

The two companies claim that the new system will be optimised for the virtualised Linux system and should allow more flexibility for companies looking to accommodate the operating system.

"For customers standardising on Microsoft’s hypervisor who also have a mixed-source IT environment, this virtualisation solution gives that choice," said Bob Kelly, corporate vice president of infrastructure server marketing for Microsoft's server and tools branch.

"For channel partners who need a cross-platform hypervisor offering, our work with Novell gives them an easy starting point."

The deal also marks the latest chapter in the ongoing partnership between Microsoft and Novell. The two first joined forces with a licensing deal in 2006 that many viewed as Microsoft's official acceptance of Linux.

Last month, the two reaffirmed that partnership when Microsoft agreed to spend another $100m on new SUSE licences. Microsoft said that the new deal represents significant progress in the partnership.

"The collaboration between Microsoft and Novell has been built by our desire to meet our customers' and partners' IT needs, and to deliver solutions that support mixed-source environments," said Kelly.