Microsoft expands controversial Novell pact

 

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Posted on 20 Aug 2008 at 08:43

Microsoft has pledged to buy an additional $100 million in support certificates from Novell, broadening their controversial alliance.

Support certificates can be exchanged for Suse Linux support from Novell, a deal which has proved a huge money spinner for the vendor. In the first 18 months alone, Novell claims to have invoiced $156 million in revenue from the Microsoft certificates.

Microsoft has been selling the certificates since 2006 when it purchased $240 million worth in a five year interoperability deal with Novell, in which the two companies also pledged not to sue each other's customers over IP patents.

At the time, Microsoft was making a lot of noise regarding the issue of IP, and claiming open-source software infringed 235 of its patents, a claim vehemently denied by much of the open source community.

Many companies, most vocally Red Hat, took exception to the Novell deal, claiming it validated Microsoft's claims.

However, Novell has rejected this argument, claiming that the deal with Microsoft and "the covenant not to sue" has simply made its Linux products a more bankable bet for its customers, who may have been uncertain about their legal position.

The agreement, which will take effect 1 November, will also see Novell invest an undisclosed sum of money to provide new tools, support, training and resources for subscribers.

Author: Stuart Turton