Dell Inks Linux-Windows Pact with Microsoft and Novell

Published: May 9, 2007

by Timothy Prickett Morgan

Server and PC maker Dell yesterday announced that it has joined a Windows-Linux alliance forged between software giant Microsoft and commercial Linux distributor Novell last November.

That partnership allows Microsoft to distribute up to 70,000 SUSE Linux Enterprise Server licenses, provides assurances to customers that Microsoft will not go after them if Linux is found to infringe upon Microsoft's intellectual property, and compels Microsoft and Novell to work together to make Windows Server 2003 and SLES 10 (as well as future releases and versions of their respective operating systems). Through the end of March, Microsoft had already distributed more than 40,000 SLES 10 Linux licenses, and several companies have gone public admitting to getting Linux through Microsoft, including HSBC, AIG Technologies, Deutsche Bank, Credit Suisse, and Wal-Mart. Microsoft paid Novell $240 million for those 70,000 licenses, and has committed to spend a total of $442 million over five years to buy more licenses and support Windows-Linux interoperability. Novell has paid Microsoft $40 million over five years for intellectual property protection for SLES 10 customers.

By joining the Microsoft and Novell collaboration, Dell will be able to distribute SLES 10 licenses provided by Microsoft and has agreed to set up a services and marketing program to help Linux shops that are not using Dell PowerEdge iron or SLES 10 Linux to move to this combined platform.

Judy Chavis, director of Dell's Product Group, said in a video statement that Dell is not only looking at taking some Linux server market share, but in making it easier for operating systems and server virtualization hypervisors more interoperable and easier for customers to deploy. "It means that we are simplifying operations for our customers, because honestly, customers want to focus on things that will grow their businesses and not on managing the Dell hardware and infrastructure," said Chavis." She added that Dell will create workshops to help customers figure out what software stacks they want to deploy and will also offer design, migration, and implementation services for hybrid Linux and Windows setups. "For Microsoft and Novell, we are a natural fit because we do not have a Unix that we are trying to protect," she said.

Dell said many years ago that Linux was going to be its Unix, but it would be hard to characterize Dell's support for Linux as enthusiastic; it was more opportunistic than anything else.

Dell is the first systems vendor to join the Microsoft-Novell collaboration. Dell was already a strong partner of Microsoft, distributing Windows on its PCs and servers, and is beginning to see the value of Linux. Hewlett-Packard and IBM already have strong partnerships with Microsoft, Novell, and Red Hat and probably will not need to go this route. But it would be ironic if the server makers decide to distribute SLES 10 and future releases through Microsoft to get the extra intellectual property protection.

The Dell announcement follows fast on the heels of an announcement last week that the company would offer Canonical's new Ubuntu 7.04 variant of Debian Linux on select desktops and notebooks after getting a huge amount of feedback from customers and interested parties through its IdeaStorm Web site. Dell has shipped Red Hat Linux as an option on servers since 1999, and SUSE Linux since 2005. Its Optiplex business desktops and Lattitude notebooks have been certified to run SUSE Linux Enterprise Desktop 10, and its Precision workstations have had Red Hat Linux as an option for many years.

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