Microsoft Expanding Linux Efforts With Novell (MSFT, NOVL)

By Douglas A. McIntyre Updated Apr 28, 1:41AM EDT · Published Aug 20, 6:16AM EDT

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Microsoft_logo_2 Novell Inc. (NASDAQ: NOVL) got some decent news after Microsoft (NASDAQ: MSFT) expanded its Linux support relationship for interoperability. If it seems that Microsoft is warming up to Linux and open source, it is at least evidence that the company realizes it has to expand its interoperability in today’s world. Novell will receive $100 million to provide additional resources, training, and support for companies and organizations using mixed-source IT operations.

This will focus on enhanced programs from Novell to provide tools,support, training and resources for customers seeking anenterprise-class Linux platform, particularly the interoperabilitysolution between Microsoft Windows Server and SUSE Linux EnterpriseServer from Novell. As part of the arrangement, Microsoft’s will spendup to $100 million in certificates so customers can get expandedsupport from Novell. Microsoft and Novell will solicit customer inputand identify to organizations running mixed-source environments.

This relationship began in November 2006 as a five-year partnershipwhere Microsoft purchased $240 million of Novell certificates to sellto customers. According to this data, Novell invoiced more than $157million in certificate revenues within 18 months. Some of the keycustomers that are said to seamlessly run both Windows Server and SUSELinux Enterprise Server include Wal-Mart Stores Inc, HSBC Holdings,Renault, Southwest Airlines Co, BMW and many other leading companiesaround the world.

Novell shares closed at $5.74 yesterday and we have not seen pre-marketindications as of yet. As far as the overall size, Novell’s fiscalOct-2007 revenues were $932 million and Oct-2006 fiscal revenues were$967 million. Analysts are looking for $958 million in fiscal 2008revenues and $998.8 million in 2009 revenues.

JON C. OGG
August 20, 2008

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.