WSJ: Microsoft and Novell to Announce Linux Partnership

UPDATE: In a surprise move that left many jaws on the floor, Microsoft and Novell held a joint press conference Thursday afternoon announcing a broad partnership to make sure Windows interoperates with SUSE Linux, and includes promises not to sue over parents. Click here for the full details of the announcement.

The day after Novell's announcement of continuing corporate shakeup, which left the company's vice president for sales boosted to the role of President of the company's Americas division, comes word from The Wall Street Journal this afternoon that the company is about to enter into a strategic partnership with none other than Microsoft.

Under the deal, which may be announced this evening in San Francisco by the heads of the two companies, Microsoft will offer technical support for SUSE Linux, Novell's version of the open-source operating system. In return, Microsoft will agree never to file patent infringement charges against Novell for technology it may have claimed it created, that was used in SUSE Linux.

The thaw in these two companies' relations -- and they had a long way to thaw -- may have begun last June, when Novell's chairman and CEO, Jack Messman, was ousted by its board of directors, and its president, Ron Hovsepian, installed in Messman's place. Messman had previously made comments about Linux being an "immature operating system" that left even Novell's own customers confused.

In interviews, Hovsepian promised a simplification of Novell's corporate structure, and a focus upon those businesses which earn the most revenue. But with customer support being the crux of the cash-earning side of the Linux business model, it's unclear -- prior to the two companies' joint announcement -- how this move will accomplish either goal.

But as Oracle makes its move to provide customer support for Red Hat Linux, thus jeopardizing that company's key source of revenue, and with Microsoft already putting major dents in Oracle's plans to retain a leadership toe-hold in the database space, today's move could be viewed as a huge win for Microsoft, which will apparently have successfully negotiated another win/win situation for itself should Linux continue its current growth pattern.

BetaNews will continue monitoring this story throughout the day.