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November 7, 2006

Microsoft Novell deal financial details revealed

Posted by David Hunter at 6:38 PM ET.

Today, Novell provided a press release describing the financial details of their big deal with Microsoft announced last Thursday as well as trying to put out the fire they started in the open source community. Here are the financial details bulletized:

How would you like to be on the Microsoft sales force selling this?

I don’t imagine that’s much of a give-up.

Novell must have really needed the net $68 million, but they may have to spend it on asbestos underwear before the open source crowd gets through flaming them (e.g. Perens: ‘Novell is the new SCO’).

Speaking of which, Novell tried to head off complaints from that quarter by mentioning their past support of open source in the press release and also by offering this FAQ. Sample:

Q3. Is this agreement an admission that Linux products from Novell infringe Microsoft patents?

No.

Patent concerns did not drive our entry into this agreement. Novell makes no admission that its Linux and open source offerings infringe on any other parties’ patents. Our position has not changed as a result of this agreement.

So why is Novell paying Microsoft at least $40 million over 5 years for patent cooperation? They claim it’s a covenant for Microsoft not to sue Novell’s customers. I’d suggest a large steamer trunk full of flame resistant undies, fellas.



Filed under Coopetition, Linux, Microsoft, Novell, Open Source, Patent Lawsuits, Patents

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One Response to “Microsoft Novell deal financial details revealed”

  1. Microsoft Novell deal keeps on giving -- Microsoft News Tracker Says:

    [...] Recall that Microsoft paid Novell for the certificates and “Microsoft may use, resell or distribute them over the term of the agreement, allowing customers to redeem a single or multi-year subscription for upgrades, updates and technical support from Novell.” There was no word on the financial details of the arrangements with the three customers. Filed under Coopetition, Open Source, Google, Linux, Novell, Samba, Microsoft [...]

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