The recent collaboration between Novell and Microsoft has bred fear, uncertainty, and doubt (FUD) among the Linux community. Don't let this cloud the buying decision when it comes to selecting the appropriate enterprise-grade Linux solution.

The Deal

In November 2006, Microsoft announced that it will be selling and supporting Novell's SUSE Linux. Furthermore, the two vendors will now collaborate to increase the interoperability between Linux and Windows applications. Under the deal, Microsoft will pay $440 million in sales, marketing, and licensing fees for SUSE Linux and has agreed not to file patent lawsuits against Novell customers. Novell will pay Microsoft $40 million for patent cooperation.

Linux Users React

While both Novell and Microsoft tout Linux/Windows integration as the most important aspect of the deal, it is clear that intellectual property rights are taking center stage. Specifically, some worry that payments from Novell to Microsoft (and the corresponding agreement from Microsoft to not file suit against Novell customers), implies the use of Microsoft intellectual property in Linux.

With the SCO lawsuit still fresh in the minds of Linux users, many fear that Microsoft will use the intellectual property aspects of the deal to argue that non-SUSE Linux software infringes on its patents. To fuel the fire, the large balance of payments in favor of Novell has some individuals speculating on just how far Microsoft will go to protect its investment in SUSE.

The tactics appear to be working. Of the 70,000 SUSE Linux support certificates Microsoft has agreed to distribute annually on behalf of Novell, 16,000 have already been scooped up by customers in the first two months since the deal was struck. Some early big name adopters include Credit Suisse, Deutsche Bank and AIG Technologies.

In a Microsoft/Novell-sponsored study conducted shortly after the partnership announcement, two-thirds of respondents claimed they would be more likely to consider Novell's SUSE Linux due to the company's collaboration with Microsoft. Fully 70% of respondents stated that they would be more likely to deploy Linux with intellectual property rights which would limit the enterprises exposure to risk. Further, 90% of respondents said that it was the vendor's responsibility to ensure intellectual property rights are secured before making products available. So does this necessarily mean SUSE Linux? The answer is no.

Novell Customers Are Microsoft Customers Are Red Hat Customers

A recent Info-Tech study shows that 28% of enterprises feel that using open-source software leaves too many copyright questions unanswered. While this may be true for many smaller open-source distributions and projects, the reality is that customers who choose enterprise-grade products such as Novell's SUSE Linux and Red Hat Enterprise Linux have little to fear.

While the prospect of a patent dispute is not entirely unrealistic, it would not affect customers. For Microsoft to sue non-SUSE Linux users, indemnification clauses aside, it would have to sue its own customers.

Microsoft's own demographic data shows that among those enterprises that identify themselves as SUSE Linux users; 100% are also Windows users; 40% also deploy Red Hat Linux; and 38% also use free, commercially unsupported versions of Linux. Similarly, those enterprises that classify themselves as Red Hat users all use Windows as well; a third deploy SUSE Linux, and 30% also use unsupported Linux.

The recent dismissal of the SCO lawsuit against IBM should help bolster the spirit of Linux users, but the real safeguard is the fact that Linux and Microsoft share the same customer base. The negative PR hit that Microsoft would take if it sued Linux users is big enough to deter it from doing so.

As if to further ease doubts, Microsoft has since tempered its official position and language and no longer openly asserts that Linux is infringing on its intellectual property. For more on Microsoft's current stance, read its FAQ page about the deal, "Microsoft and Novell Collaboration on Windows and Linux Interoperability and Support Frequently Asked Questions." Novell's perspective can be found at "Novell Answers Questions from the Community."

Key Takeaways

1. Bust the FUD. If the enterprise is looking at SUSE Linux, the argument against adoption should not be the fear of litigation. More important business drivers are interoperability, compatibility, and potential virtualization improvements. SUSE Linux will be especially attractive for those enterprises that have a mixed environment of Microsoft infrastructure (i.e. Exchange, Active Directory, SharePoint) and Novell's enterprise products (i.e. eDirectory, Open Enterprise Server, GroupWise).
2. Seek indemnification clauses to level the playing field. Microsoft has been projecting subtle messages that other enterprise-grade open source alternatives (i.e. Red Hat/Oracle) may expose the enterprise to risk due to patent infringement. Consider the following:
   • Novell: Under the Microsoft/Novell deal, Microsoft has agreed not to sue Novell customers; however, Novell as a company receives no such covenant, nor does it receive a patent license. As such, Microsoft can still sue Novell, but customers are off the hook.
   • Red Hat/Oracle: In response to the agreement Microsoft/Novell, Red Hat and Oracle have also added indemnification clauses to their support contracts, clearing customers of any liability in the event of legal claims against the company. If software is found to infringe on any third-party intellectual property rights, Red Hat/Oracle will either obtain the rights necessary for customers, modify the software so that it is non-infringing, or replace the infringing portion of the software with non-infringing code. Again, customers are not legally implicated.
   So, in the highly unlikely event that Microsoft does sue, the net result is a wash from a customer perspective.
3. Look for Linux/Windows interoperability code under open-source license. The backlash against Novell from the open-source community has been huge. Expect Novell to try and save face by reinforcing its commitment to open-source. Specifically, this could mean some new products under GPL (or the CPL favored by Microsoft), perhaps related to Linux/Windows integration. Of course, Microsoft will also want to protect its investment, so chances are that the majority of development dollars will go towards Microsoft/Novell closed-source aspects of Novell's products. Still, Microsoft's acknowledgement of Linux as an inevitability in the data center means that it cannot completely ignore its non-SUSE customer base – some compromises are bound to be made. An interesting perspective on Microsoft open-source can be found at "Q&A: The Linux/Open Source Software Lab on Microsoft's Redmond Campus."

Bottom Line

Heterogeneous IT environments are a reality and customers wear more than one hat (i.e. not just Windows). Despite its bark, Microsoft will not bite the hand that feeds it. Clear the vendor selection process of FUD and make Linux platform decisions based on the fit within the enterprise's overall technology direction, existing in-house skill sets, migration costs, and validated risks.