One thing Microsoft is good at is making money. Originally a strong Linux opponent, now Microsoft is making millions of dollars through a little known marketing partnership with Novell selling SUSE Linux support.

In its annual report, Novell describes a partnership with Microsoft that allows the companies “to increase the utility, desirability and penetration of Linux by enabling its interoperation with Windows to a mixed environment that is easier to maintain. We believe that this partnership will help us deliver differentiated value to customers by giving them greater flexibility and effectiveness in their IT environments.”

Building compatibility between Linux and Windows can only help customers, but later in the report Novell writes “during fiscal 2007, we received $355.6 million from Microsoft related to the Microsoft agreements discussed above, which is being recognized over future periods.”

Microsoft and Novell report a growing list of clients purchasing Linux support, including newer relationships with Costco Wholesale Corp., Southwest Airlines Co. and the City of Los Angeles.

In large part, this is due to Microsoft’s efforts to sell certificates that qualify purchasers for 3 years of SUSE Linux support from Novell. The company’s existing partnerships with customers is paying off in a big way.

Microsoft writes on its site that “by taking a leading position in delivering interoperability with Microsoft, Novell is becoming the preferred Linux choice for the integrated enterprise, a fact borne out by the significant sales increase we’ve seen over the past year.”

Partnerships between Microsoft and companies like Novell have frustrated many in the Linux community, who view Microsoft’s patent portfolio attacks as “anticompetitive” and as “attack[s] on free software”.

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Entry was posted on Thursday, January 3rd, 2008 at 9:09 pm under Linux, Microsoft, Open source, Software.

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