Novell is in discussions to sell off its Suse Linux division to VMware, according to various reports on the web.
The rumours indicate that Novell is attempting to sell various parts of its business, including its Suse Linux subsidiary, which the company acquired in 2003.
Various sources, including The Wall Street Journal, claim to have confirmation that VMware is to be the buyer.
Neither company would comment on the story when contacted by V3.co.uk.
VMware is said to be interested in the acquisition in order to widen its product portfolio to offer a complete software stack, and better compete against rivals such as Red Hat and Microsoft.
Although VMware is currently the market leader in virtualisation, Red Hat in particular has been touting its portfolio as offering a complete enterprise stack for customers, especially those planning for cloud computing.
VMware and Novell already have a partnership for development and support of ready-made virtual appliances based on Suse Linux to run on VMware infrastructure, so bringing Suse in-house would appear to make sense.
Other commentators have speculated that VMware could gain from acquiring the Unix intellectual property rights that Novell still owns, especially if it came to patent battles with rivals.
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