Microsoft Pumps Another $100M Into Novell Deal
Novell has ventured deeper into its deal with Microsoft. Redmond has agreed to buy another $100 million in support certificates from the open source software maker. The arrangement has touched off much debate since its announcement in 2006. Since then, Novell has seen its business grow, and Microsoft may be getting a valuable look at how a broad spectrum of enterprises implement open source software.
Microsoft Latest News about Microsoft is bumping up its monetary investment in its controversial partnership with Novell (Nasdaq: NOVL) Latest News about Novell. Styling the deal as a so-called incremental investment increase, Microsoft will buy up to US$100 million in Suse Linux Enterprise Server support certificates.
The certificates are sold and exchanged for IT support from Novell for its Suse Linux Enterprise Server.
Microsoft and Novell struck their deal in November 2006 in an effort to boost interoperability between Microsoft’s applications and Novell’s open source operating system. Under the terms of the five-year deal, the software maker ponied up $240 million to buy Novell certificates to sell to customers.
In the following year and a half, Novell has invoiced more than $157 million in certificate revenues, or 65 percent of the original allotment, according to Microsoft.
“Microsoft is under tremendous market pressure from customers to enable interoperability with open source solutions. Their partnership with Novell enables them to accomplish that within the framework of what Microsoft views as appropriate intellectual property practices,” said Bernard Golden, chief executive officer at Navica.
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