November 8th, 2006 by Keith

Microsoft Pays $348 Million To Novell

Posted in Business Software, Linux, Site News, Windows

Novell Logo Microsoft Logo

According to Reuters, Software maker Novell Corporation reponded that Microsoft Corporation will have to make two separate up-front payments to them, under an agreement to allow Novell’s open-source Linux software to integrate and work with Windows. The amount is known to total about $348 million.

While the upfront payment is roughly $240 million, in subscription fees, it allows the world’s largest software maker, with users all around the world, to make use of Novell’s Linux software. The remaining $108 million is used to pay for the use of patents.

Under this agreement, the pact will run to at least year 2012. Despite Microsoft’s large payment to Novell, the latter will also have to pay Microsoft at least $40 million over the next five years for use of Microsoft’s patents based on a percentage of its revenue that generated from open-source products.

In this circumstances, it seem like a win-win situation for both strong enterprises joining hands, an effort to server a large market of customers using both Linux and Windows servers.

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