Handshake or grab?
On November 2, Microsoft CEO Steve Ballmer and Novell CEO Ron Hovsepian walked on to a stage together to announce that the two companies, bitter rivals for more than 20 years, would co-operate to make Windows and Linux work better together.
They announced that Microsoft would sell Novell’s version of Linux to Windows customers and that they would pay royalties to one other in return for a promise that they would not sue each other for infringing one another’s patents.
In an interview with The Register, a popular UK technology website, open-source advocate Bruce Perens described Novell as “the new SCO”, in reference to SCO Group, which has filed a number of lawsuits and claims against Linux vendors alleging they are in violation of various copyrights owned by the company. SCO has failed to make much headway in its claims and has become an object of derision in the open-source community.
Other commentators have been even harsher in their criticism. Forbes columnist Daniel Lyons does not believe Microsoft has Linux’s best interest at heart. “Microsoft has done this many times before, so often that [the company] has a name for the technique: embrace, extend and exterminate,” Lyons writes.
“And yet people keep doing these deals. Usually, it’s weak, struggling, desperate companies with declining market share and little hope of turning things around. In other words, just like Novell.”
Novell got into the Linux business in 2003 when it acquired German Linux company Suse for US210m.
Almost since its inception in 1979, it has been on the warpath with Microsoft. In the 1980s, Novell controlled the market for network operating systems with its NetWare product, which allowed companies to share resources on local-area networks.
But Microsoft, which already owned the desktop with Windows, had its sights set on control of this market. Novell took its eye off the ball and, in a series of ill-considered acquisitions and strategic missteps, it lost not only the network operating system war to Microsoft but also got itself into dire financial straits.
Novell’s embrace of open-source software was to be its attempt, under former CEO Jack Messman, to restore some of its former glory, to compete effectively again with Microsoft. But in June, Messman was axed by the Novell board for failing to produce the goods financially. He was replaced by Hovsepian, whose deal with Microsoft will define his legacy. Critics say that history will not judge him kindly.
But Novell SA MD Stafford Masie says this criticism is misplaced. He says:
By securing a commitment from Microsoft to support the use of Linux and open-source software, Novell has allayed any potential concerns for its customers and removed a barrier to Linux adoption by business.
The agreement will lead to greater interoperability between Linux and Windows.
The deal will give Linux and Windows users peace of mind regarding patent issues.
Masie insists that the partnership agreement is not a concession regarding Novell’s patents or intellectual property.
He says he understands why some Linux enthusiasts feel uncomfortable. “Microsoft may have an interesting past when it comes to partnering and competing but we do not see how they could possibly exterminate the open-source community. Nobody owns the open-source community and that is the beauty of this movement — Novell does not and neither will Microsoft.”
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