Hard on the heels of the announcement (click) that enterprise software giant Oracle intended to compete with Red Hat by essentially re-badging, improving and lowering the support costs of the Linux OS market leader’s own products comes more unsettling news (if you’re Red Hat that is): Microsoft (aka the Beast of Redmond) has done a proprietary Windows/open source Linux interoperability deal with Novell. Under a technical cooperation agreement aired last week, Novell and Microsoft will work together in three primary areas to deliver new solutions to customers: virtualisation, Web services management and document format compatibility. The two companies also announced an agreement to provide each other’s customers with patent coverage for their respective products. These agreements will be in place until at least 2012.

“They said it couldn’t be done. This is a new model and a true evolution of our relationship that we think customers will immediately find compelling because it delivers practical value by bringing two of their most important platform investments closer together,” said Microsoft ceo Steve Ballmer, ceo of Microsoft. “We’re excited to work with Novell, whose strengths include its heritage as a mixed-source company. Resolving our patent issues enables a combined focus on virtualisation and Web services management to create new opportunities for our companies and our customers.”

Here’s the verdict of Tim Jennings, head of research at the Butler Group: “This is good news for the industry, as it improves the ability for enterprise customers to deliver value from mixed environments. (The) deal is certainly good for Novell – it has been playing second fiddle to Red Hat in the enterprise Linux market (and very bad for Red Hat, coming on the back of its Oracle issues of last week). For Microsoft, it puts it in a stronger position to support large heterogeneous environments and strengthens both its enterprise play and its positioning re open source (part of a longer term trend, following deals with XenSource, SugarCRM, Zend). I think this is also a smart move, in that it makes it easier for Microsoft to defend its market position against Oracle, IBM, and Sun, by partnering with a credible player that is not a top-tier competitor.”

“From a technology standpoint, the deal will be welcomed by those evaluating and implementing server virtualisation solutions, which Butler Group sees as a key technology for improved infrastructure flexibility,” continued Jennings. “It will simplify virtualisation of mixed Windows and Linux environments, and provide organisations with the reassurance of vendor support. It also promises improved interoperability in terms of identity and access management solutions, and office document formats, both of which will be welcomed by enterprise IT customers.”

There’s a brave face under the Red Hat, though.

To the Oracle Unbreakable Linux initiative the Red Hat Unfakeable Linux response is: “The opportunity for Linux just got bigger. Oracle’s support for Linux reaffirms Red Hat's technical industry leadership and the end of proprietary Unix.”

The Microsoft/Novell deal gets the same sort of reaction in a FAQ section on the Red Hat website. Here’s an extract:
Q: What do these announcements mean for Red Hat?
A: It means Linux has won. The world's largest software companies are saying what customers have known for years: open source innovation delivers better software and better value.
Q: Did Red Hat consider a similar patent deal with Microsoft?
A: An innovation tax is unthinkable. Free and open source software provide the necessary environment for true innovation. Innovation without fear or threat. Activities that isolate communities or limit upstream adoption will inevitably stifle innovation.

We say: a bit gnomic, that last bit.
John Williamson