Update: Novell To Buy SUSE In Blockbuster Linux Move
The cash deal is expected to close by the end of Novell's first fiscal quarter in January 2004.
Novell, a leader in network operating systems that has been trying to diversify in the face of Microsoft's Windows NT/2000 onslaught, bought Ximian, a maker of Linux desktop software, last August (see story.)
Novell, Provo, Utah, "is doing well with Ximian, and now they'll have even more tools at their disposal, offering them through the best partner network in the world," said a source close to SUSE, Nuremberg, Germany
Novell made its name propagating its NetWare network operating system, which is credited with bringing shared file-and-print services to the masses. It pioneered a broad-based channel to do so. In more recent years, it has moved its core networking services to other platforms and in the past few years has been a big backer of Linux.
In other news, the company said IBM will make a $50 million investment in Novell and the two companies are working out extensions to existing commercial agreements between IBM and SUSE. SUSE, along with Red Hat, is one of the world's leading Linux distributions.
"The acquisition of SUSE Linux will complete Novell's ability to offer enterprise-class Linux solutions to our customers from the desktop to server," Novell Chairman Jack Messman said in a statement.
Linux proponents are bullish. Echoing Messman's statement, Anthony Awtrey vice president of Ideal Technology of Orlando, said the Novell-SUSE combo "will put a significant pinch into Microsoft's Longhorn plans."
"This gives Novell a complete front-to-back desktop-to-server-side infrastructure software if they do the integration right. Longhorn is due in 2005 at the earliest and open-source development moves at rocket speed," Awtrey said.
Awtrey, who specializes in open-source work, said the combination of Linux servers and Samba-based connection to Windows desktops is proving a potent force in the market. "Samba 3.0 is kicking Windows' butt in benchmarks. It provides Microsoft authentication on Linux boxes ... half of the companies I deal with are using Linux serviers running Samba... [that combination] negates the client-access licenses Microsoft requires to talk to Windows servers," he noted.
He also said the IBM investment is key and could have ramifications on the ongoing SCO-IBM litigation.