Wednesday, November 08, 2006
Microsoft to pay Novell $450m
MICROSOFT has agreed to pay Linux software maker Novell $450 million to make its software interoperate with Windows, the open source specialist revealed in filings to the US securities exchange regulator.
The payments, which will be made in two tranches, are part of an agreement under which Microsoft and Novell will adopt a broad set of business and technology measures to make their products work together better. Novell lodged documents with the US Securities and Exchange Commission, which said that would Microsoft would pay Novell $US240 million ($300 million) up front in subscription fees to allow the world's largest software maker to use its Linux software.
Microsoft will also pay Novell an additional $US108 million for use of its patents, Linux is the most popular variant of open-source software. Unlike proprietary software, open-source software lets developers share code and add functions, and users only pay for custom features, maintenance and technical support. Microsoft agreed not to sign a similar agreement with any other Linux distributor for three years. Microsoft's pact with Novell dealt a blow to other Linux distributors such as market leader Red Hat, according to analysts. Under the pact, which will run until at least 2012, Novell will also pay Microsoft at least $US40 million over five years for use of Microsoft's patents based on a percentage of its revenue from open-source products.
The payments, which will be made in two tranches, are part of an agreement under which Microsoft and Novell will adopt a broad set of business and technology measures to make their products work together better. Novell lodged documents with the US Securities and Exchange Commission, which said that would Microsoft would pay Novell $US240 million ($300 million) up front in subscription fees to allow the world's largest software maker to use its Linux software.
Microsoft will also pay Novell an additional $US108 million for use of its patents, Linux is the most popular variant of open-source software. Unlike proprietary software, open-source software lets developers share code and add functions, and users only pay for custom features, maintenance and technical support. Microsoft agreed not to sign a similar agreement with any other Linux distributor for three years. Microsoft's pact with Novell dealt a blow to other Linux distributors such as market leader Red Hat, according to analysts. Under the pact, which will run until at least 2012, Novell will also pay Microsoft at least $US40 million over five years for use of Microsoft's patents based on a percentage of its revenue from open-source products.
