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355.6 million reasons the Novell-Microsoft deal is working

Posted by Scott_Ruecker on · 18 comments
Tectonic; By Alastair Otter
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Via CRN we learn that according to Novell’s recent 10-K annual report, the Linux vendor received $355.6 million (R2.5 billion) from Microsoft in terms of the companies’ agreement on interoperability signed in 2006. No wonder Novell execs are feeling pleased with themselves.

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Comments (18)

Well, duh.

This is not news.

While FOSS folk have gone apoplectic over one very small part of a large deal, most of the agreement was about other things, including a great big pile of cash money.
well ... if they paid me 355.6 million dollars, I could probably find "something" nice to say about M$ too.

I would have to look hard, but for $355,600,000.00 I'd find something :D
> ... if they paid me 355.6 million dollars, I could probably find "something" nice to say about M$ too.

Something nice about Microsoft? Here, for free:

http://blog.seattlepi.nwsource.com/microsoft/archives/005735...

Say what I will about Microsoft's executives, they are not as overpaid as the executives at most companies. Now, that doesn't include stock options, but neither do the other compensation figures you hear.
Something nice about Microsoft? They're really good at marketing, lobbying and influencing the public opinion. Results of that, on the other hand, are not nice...
Is there a Redmond LUG?
Quoting:Is there a Redmond LUG?
No, but there is Redmond MUG. :)

mug - a person who is gullible and easy to take advantage of.

mug - rob at gunpoint or with the threat of violence

take your pick.



You bet, if I ever go to Redmond you can be sure that I will have my pick.

Quoting:... I will have my pick
ColoneI, I thought you would come up with something better, any how, make sure it is well sharpened. :)
> I will have my pick.

You play guitar?
Quoting:Is there a Redmond LUG?


No, but there used to exist a Redmond Linux: http://www.linux.com/articles/19973
gus3, No guitar, until the end of October, 07 I was using a pick. You know, holes in the ground, breakup cement? No, no, no, not like breaking rocks in the hot sun. The Colonel was grounds-keeper for an estate.

Not going to Redmond, ever. But if anyone Linux does go there, well, the Colonel will provide the holes? :)
>Not going to Redmond, ever

Not really so bad if you like your weather moist. Not sure, but I think not having a cell phone (or, these days, a bluetooth adapter) shoved into your ears is grounds for arrest.

Makes me sick.

This makes perfect sense. I agree to the fact that they are going to be doing good regardless of whether or not they sell copies of SLES. What I don't get is why all these Linux distributions are becoming Microshaft's personal slaves. I guess they want to avoid patent suits. The whole point in standards is so there's a common agreement amongst software makers so the software can communicate with each other and freely exchange information. If these standards Microsoft is creating are locked to one platform they aren't a standard at all.
>What I don't get is why all these Linux distributions are becoming Microshaft's personal slaves.

Why would you make such a comment? I'm not aware of a single distribution that fits that description.

I can certainly understand companies who are in financial distress making business arrangements that may help to save the company, which is how I categorize Novell's deal.

Apple did the same thing in 1999 when it struck a $150,000,000 deal with Microsoft. They have since recovered and no longer need any Redmond money.

Please note that the Apple-Microsoft deal did involve a certain amount of cooperation between the two companies, but it did not keep Apple from competing. If anything, the cash influx let the company stagger to its feet so that it actually could compete.

The time to judge the Novell deal and others like it is not now, but in five years.

That presumes, of course, that companies don't start ignoring licenses, infesting distros with DRM, or some yet unknown curse.

If, on the other hand, Microsoft wants to pay Novell $300 million to develop OOXML support, hey, who am I to complain if some developers get paid?





> Apple did the same thing in 1999 when it struck a $150,000,000 deal with Microsoft. They have since recovered and no longer need any Redmond money.

But the contractual obligations still stand, and I'm sure if Redmond decided they didn't like the actions of Apple or Novell, they could "find" some breach of contract.

With Microsoft's fingers on your purse-strings, they are also holding the carpet under your feet.
>But the contractual obligations still stand

Which is ok if the obligations are not obnoxious.
> Which is ok if the obligations are not obnoxious.

The obligations per se aren't the point. It's more like Don Microsoft Corleone making you an offer you can't refuse. If you try to refuse, you could suddenly find yourself accused of "breach of contract" (whether you really are or not) and having to either:

(a) defend yourself against their well-heeled lawyers, or

(b) getting back in the Microsoft line because you can't afford (a).
> It's more like Don Microsoft Corleone making you an offer you can't refuse

No, it isn't.

Contracts are multiply bounded. Obligations are spelled out and time frames are limited.

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