Navigations

ChewOnTech.com is looking out for our fans to join us! Email us today at chew_jek_hui@chewontech.com

Google Search

Google
 

Saturday, November 04, 2006

Beaten Microsoft

Microsoft acknowledged the influence of the Linux operating system on Thursday by striking a deal with Novell, a longtime rival, to ensure that Novell’s version of Linux could operate together with Windows in corporate data centers.

Steven A. Ballmer, the chief executive of Microsoft, said that the companies began discussing the collaboration in April, but that Microsoft had been getting pressure from its largest corporate customers far longer.

“I certainly recognize that Linux plays an important role in the mix of technologies our customers use,” Mr. Ballmer said at a news conference here announcing the partnership. But he added that Microsoft would continue to push Windows over Linux to customers, endorsing SuSE Linux only if customers insisted on using it.

The partnership, according to industry analysts, is driven by both competitive and customer considerations. Linux and Windows are increasingly used on corporate server computers powered by the lower-cost microprocessors from the personal computer industry.

Analysts said Microsoft’s move might well help its fast-growing server software business by reassuring corporate technology managers that they could make continued investments in Windows and Linux. Both proprietary Windows and open-source Linux have made strong gains in corporate data centers, not so much against each other, but by supplanting costly machines that run commercial versions of the Unix operating system and sometimes, mainframe computers.

Microsoft’s server software sales are now running at $10 billion a year, rising 17 percent in the most recent quarter.

Richard Sherlund of Goldman Sachs said, “Microsoft doesn’t have to like Linux, but C.I.O.’s want Windows to play well with Linux.”

As part of the agreement, Microsoft said it would not file patent infringement suits against customers who purchase Novell’s SuSE Linux.

Mr. Ballmer, though, disputed the notion that Microsoft’s announcement was in response to Oracle’s arrangement with Red Hat.

“We’ve been working on this deal for a long time,” he said, calling Oracle’s deal “just a service agreement” with Red Hat. “You get no covenant not to sue if you chose Oracle.”

Microsoft and Oracle are the two largest software companies in the world, competing in databases, programming tools and some business applications. Yet Oracle’s fundamental business is corporate database software, while operating systems are Microsoft’s core franchise.

0 comments: