Microsoft pumps $100m into Novell Linux deal

Microsoft on Wednesday extended its existing partnership with Novell with a pledge to pump up to an additional $100m into the deal.

The companies, which announced an interoperability deal two years ago, said Microsoft will purchase up to $100m in certificates that its customers can redeem for Novell's Suse Linux service and support.

The new Microsoft investment will begin in November, the companies said.

The deal is centred on interoperability between Windows Server and Suse Linux Enterprise Server. The original deal, a five-year interoperability partnership inked in November 2006, called for Microsoft to buy $240m worth of such certificates. Novell said that it has already invoiced more than $157m in certificate revenue in 18 months.

The companies said that between now and November, they "will solicit customer input and identify aspects of the support programs that will be most useful to organisations running mixed-source environments".

The initial deal between the companies was roundly criticised by open-source advocates as conflicting with licensing provisions. Corporate customers, faced with the realities of making mixed-operating system environments work, have welcomed the deal. Microsoft and Novell said that customers taking advantage of the partnership include BMW, HSBC Holdings, Southwest Airlines and Wal-Mart.

Original article: Microsoft, Novell expand Linux deal by up to $100 million from CNET News.com