Microsoft to support Linux platform

Novell primarily relies on the fees for customer support to make money off the Linux software, which is developed by a global community of programmers who aren’t tied to any single company and freely share improvements to the code.

Ballmer stressed that Microsoft will first try to convince corporate customers to use Windows exclusively before relenting to the notion of a hybrid system using Suse Linux.

To encourage more companies to embrace Novell’s open-source platform, Microsoft has pledged not to assert its patent rights over any of its technology that may be blended with Suse Linux.

The concession is meant to address the concerns of many corporate users who have been reluctant to use Linux because they feared Microsoft might retaliate with patent-infringement claims.

“This is a big day for Microsoft customers,” said Stuart Cohen, chief executive officer of the Open Source Development Labs, a Beaverton, Ore. group trying to expand corporate America’s reliance on Linux. “They are being told by Microsoft that they can use Linux and not worry about it. That’s a big statement.”

Microsoft’s patent waiver only applies to users of the Suse Linux platform.

The new partners have a stormy history.

In 2004, Novell reached a $536 million settlement with Microsoft over antitrust complaints in Europe and then sued its rival again in the United States. The U.S. suit alleged that Microsoft withheld technical information about Windows that Novell needed for its word processing program. Novell has since sold WordPerfect, but its antitrust claim remains alive.

Microsoft’s decision to work with Novell reflects the increasingly important role of Linux’s open-source software in corporate computing systems. About 20 percent of corporate America relies on some form of Linux, Cohen estimated.

Because it’s available for free, Linux software long has been has been a source of consternation for Microsoft, which makes most of its money from the sale of its proprietary software.

“I have had a lot of conversations with (Ballmer), and I can assure you he wasn’t usually smiling when we were talking about Linux,” said Shane Robison, chief strategy and technology officer for Hewlett-Packard Co.

But Microsoft has been under increasing pressure to loosen up, and not just from customers who want to be able to run Linux with Windows.

Online search leader Google Inc. also is giving away more Web-based software, including word processing and spreadsheet programs, and last year promised to work with Sun Microsystems Inc. to help distribute OpenOffice.

Just last week, Oracle Corp. provided the Linux system with another major lift by offering steep discounts on product support of the Linux platform provided by Red Hat Inc.

Microsoft’s backing of Novell’s Linux platform may raise even more worries for Raleigh, N.C.-based Red Hat, whose stock price has dropped by 17 percent since Oracle launched its assault.

MORE FROM U.S. BUSINESS

U.S. business Section Front

Madoff's 55-foot yacht put on auction block   CEO is stepping down from beleaguered GMAC   Post office was $3.8 billion in the red last year Report: Credit card delinquencies increase Cisco raises bid for Tandberg to $3.4 billion Beazer Homes CEO could face civil charges Madoff's Mets jacket sells for $14,500 NYT: Drug firms raise prices ahead of reform Ex-Madoff computer programmers arrested Ford: New police cruiser to replace Crown Vic U.S. business Section Front   Add U.S. business headlines to your news reader: