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Novell Gets $348 Million From Microsoft

An anonymous reader writes, "Novell has published additional details about its agreements with Microsoft concerning Windows and Linux interoperability and patents. It seems the company is receiving an up-front payment of $348 million from Microsoft, for SLES subscription certificates and for patent cross-licensing. Microsoft will make an upfront payment to Novell of $240 million for SLES subscription 'certificates' that Microsoft can use, resell, or distribute over the term of the agreement. Regarding the patent cooperation agreement, Microsoft will make an up-front net payment to Novell of $108 million, and Novell will make ongoing payments totaling at least $40 million over five years to Microsoft."

10 of 308 comments (clear)

  1. OK, NOW you can use the 'itsatrap' tag by Anonymous Coward · · Score: 5, Funny

    Go for it, guys.

  2. Good move on both sides, for now ... by Salvance · · Score: 5, Insightful

    As scary as this initially sounds (Microsoft Linux anyone?), the partnership makes sense. Microsoft gains the capability to run Linux better in a virtualized environment (or vice versa), and Novell gets a ton of much needed cash. For years, it's been obvious that at some point Microsoft would have to start recognizing the fast growth of Linux as an enterprise platform, and it appears that this move is Microsoft's first step.

    The only concern I have is that Microsot continues further down the path and begins to create closed source applications or kernel modules specifically to run Microsoft apps. If they can swing this, the potential for degradation of the upward Linux momentum is high. John Dvorak of PC Magazine figures that Microsoft will develop GPL work-arounds, and eventually begin releasing Linux apps.

    What then? Mac servers for everyone?

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  3. The modern value of 30 silver coins... by ezh · · Score: 5, Funny

    is $348 million. How do you call it? Inflation!

  4. Novell defends it's move ... by breem42 · · Score: 5, Informative
    From the same site (different page - http://www.linux-watch.com/news/NS4685037869.html) :

    "Under the patent cooperation agreement, Novell's customers receive directly from Microsoft a covenant not to sue. Novell does not receive a patent license or covenant not to sue from Microsoft, and we have not agreed with Microsoft to any condition that would contradict the conditions of the GPL. Our agreement does not affect the freedom that Novell or anyone else in the open source community, including developers, has under the GPL and does not impose any condition that would contradict the conditions of the GPL. Therefore, the agreement is fully compliant with the GPL,"

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  5. Bill + Steve ( extended version ) by Harmonious+Botch · · Score: 5, Funny

    Bill: "I'm worried, Steve. We're losing more ground to Linux. It's on the verge of becoming a non-nerd OS."

    Steve: "I've got an idea. Let's buy another version of Linux."

    Bill: "Are you crazy? The SCO gambit didn't fool anybody."

    Steve: "No, not like that. Instead of trying to fool a judge, we'll try to fool our customers."

    Bill: "So? That's already company policy."

    Steve: "Yes, but we'll release our own version. We tell the public that we're joining the Linux bandwagon, and with our marketing clout, it will soon become the dominant version on the market. Then when the public is convinced that MS-Linux IS Linux, we make gradual changes to turn it into an unusable bloated wreck. Linux will be finished!"

    Bill: "No way! Remember, Steve, I used to write software. No self-respecting programmer would deliberately wreck an OS. Where are we going to get a bunch of programmers to do that?"

    Steve: "We have all the guys who wrote Vista. I think they could do it."

    ( Steve exits )

    ( 10 minutes later, Steve returns, slamming the door quickly behind him. He looks like he has seen a ghost )

    Bill: "So, how did it go?

    Steve: ( shaking his head ) "Bad, bad, bad, bad, b-"

    Bill: Get a grip! What happened?

    Steve: "They won't do it...I mean they'll do it, but they want to do it well! They won't wreck it."

    Bill: "You explained the plan to them?"

    Steve: "Yes, very clearly. Twice. But they just started chanting. One word, over and over and over and over and over and ov-

    ( Bill picks up a chair, bashes Steve over the head with it. )

    Steve: "Wh..? Uh..thanks...I needed that."

    ( Bill puts down the chair, walks to the door )

    Steve: "Nooo! Please don't op-"

    ( Bill opens the door. From down the hall a chorus of voices can be heard. )

    Voices: "-ux! Linux! Linux! Linux! Linux! Linux! Lin-"

    ( Bill slams the door )

    Bill: "That's bad."

    Steve: "It's worse. They now refuse to work on Vista any more!"

    Bill: "That's ok. We aren't going to support it for very long anyway."

    Steve: "So what are we going to do?"

    Bill: "I think I can still make the plan work. Listen: we'll let them produce a good version of Linux. We'll make it very good for servers."

    Steve: "Suse? You mean we'll take over Novell?"

    Bill: "Yes. That gives us a big step up to dominate the Linux market like you suggested. But instead of trying to convice the world that Linux is junk, we'll tell them that Linux is only for servers."

    Steve: "But it will migrate to the desktop! We have to kill it!"

    Bill: "No, we'll let the guys downstairs make it the way they want it. Keep it for nerds. Each update will be more and more technical. Let them gradually turn it into something that only a Linux pro can use."

    Steve: "We're gonna pay them to write Gentoo?"

  6. Well... by tooyoung · · Score: 5, Funny

    ... I guess now we don't like SLES. Shoddy security, I've heard.

  7. RTFA - it's obvious what is happening. by Anonymous Coward · · Score: 5, Interesting

    Novell is in huge financial trouble. If you read the article, they are trying to negotiate with their major debtors to come to an agreement and continue payments. Wells Fargo and Citibank are calling two of their major loans out against Novell. Also note the rumors of layoffs, investigating other financial mishaps, and the late filings of their earnings. This is what causes many companies to start heading down the tubes. The whole Microsoft agreement is essentially Microsoft cashing in on Novell after they made some financial mistakes and need someone to bail them out of it. Just watch as Microsoft ends up having major influence in the direction of Novell. This isn't a bad thing though. It means there will still be two main players in the Linux Business market. It's Microsoft's way of also creating some feirce competition against Redhat. Not to mention Oracle has their sites on Redhat and are taking shots at them. The whole support agreement with Oracle deal is meant to take out Redhat's major market. With that and a soon to be beefed up financial stability of Novell and push for SLES, Redhat will had some hard roads to go through. It's no surprise that MS sided with Novell when they saw Oracle make their move against Redhat. Interesting times in major Linux vendors are ahead. It should be interesting to see how it all turns out.

  8. Re:Its' Not a Patent Deal. by Bruce+Perens · · Score: 5, Interesting
    I read the form 8K on Edgar. Don't count on press releases.

    The companies are paying each other for covenants not to sue. It's there in black and white. I don't see that this is any different from a license, and I don't see that a judge would be swayed that a covenant in this context is any different from a license.

    It still sounds like a GPL violation to me. Now, we have to watch what FSF does. They own the C library that literally every program on Novell Linux uses. They have a reasonably strong case to enjoin Novell from distributing it, which would kill SuSE entirely. They have Red Hat to pay for the lawsuit.

    Bruce

  9. Re: Interoperability? by greenbird · · Score: 5, Insightful
    I need interoperability, and simplicity, neither of which are strong points of Linux right now.

    Every time I see a statement like this it pisses me off. Linux is very inter operable with every mainstream OS except Windows. And you know what, Windows isn't inter operable with any other OS that exists. Not only that but the Linux community goes to outrageous efforts to make it inter operable with other OS's (reverse engineering) while Microsoft goes to extreme efforts to ensure no OS can inter operate with Windows.

    Also why is it I find Linux far simpler than Windows. You set it up and it works forever. On rare occasions that there are problems you can find a definitive solution unlike Windows where you just reboot and pray because no one including Microsoft knows what's happening with most problems.

    --
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  10. Welcome to the collective by DragonHawk · · Score: 5, Funny

    "I really enjoy when morons talk about Slasdhot as though it were a single entity, rather than a group of distinct people..."

    Actually, Slashdot is really just one big giant AI system. All the so-called "users", including this one, are really just dummy accounts for the AI. You're the only human here.

    Sincerely,

    The Slashdot Overmind

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