What's Microsoft's role in the Novell-Attachmate deal?

By | November 22, 2010, 6:44am PST

Summary: Seattle-based Attachmate Corp. is buying Novell for $2.2 billion, the companies announced on November 22. At the same time, Novell announced the “concurrent sale of certain intellectual property assets to CPTN Holdings LLC, a consortium of technology companies organized by Microsoft Corporation, for $450 million in cash.”

Seattle-based Attachmate Corp. is buying Novell for $2.2 billion, the companies announced on November 22. At the same time, Novell announced the “concurrent sale of certain intellectual property assets to CPTN Holdings LLC, a consortium of technology companies organized by Microsoft Corporation, for $450 million in cash.”

So far, Microsoft is saying little about its role in the deal.

“We are pleased to be a part of the acquisition of certain intellectual property assets of Novell. Microsoft looks forward to continuing our collaboration with Novell into the future, to bring mixed source IT solutions to customers,” said the company via a statement from Horacio Gutierrez, Microsoft’s Corporate Vice President and Deputy General Counsel of Intellectual Property and Licensing.

I asked Microsoft officials for more information about which Novell IP assets they’re purchasing. I also asked who else is part of CPTN Holdings. Microsoft officials haven’t yet responded to my query. are providing no information beyond the statement above. For the record, there are no court filings for CPTN or any record of the consortium until today. CPTN doesn’t turn up in any documents with the Securities and Exchange Commission, either.

There is an 8-K which notes that Microsoft and its unnamed CPTN partners bought 882 patents as part of this transaction, however.

I’m also wondering whether the Microsoft IP purchase means that Novell’s plan to appeal its antitrust case against Microsoft involving WordPerfect is now DOA. I’d assume so, but Microsoft officials are not commenting, they told me.

Novell and Microsoft’s shared IP history has been tumultuous. Novell, the company behind SuSE Linux, entered a patent-protection deal with Microsoft in 2006. Via that deal, Microsoft agreed to distribute to its customers certificates for Novell’s SuSE Linux, and Novell basically conceded that its implementation of Linux violated Microsoft patents and agreed its customers needed patent-enforcement protection. That pact was designed as a five-year deal (which would expire in 2011). As part of the 2006 arrangement, Microsoft and Novell also agreed to improve interoperability between Windows and Linux.

Attachmate officials have said they plan to operate Novell as two business units, Novell and SUSE, and join them with their Attachmate and NetIQ businesses.

Update: It sounds like Mono development will continue under the new Attachmate owners, as well.

Update 2: One IDC analyst suggests that Microsoft may have had designs on the Novell Platespin datacenter management/virtualization technology. Here’s more on Platespin.

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

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Talkback Most Recent of 49 Talkback(s)

  • Obviously, MS knows they can not compete on the merits, and will go the
    patent route to kill competition. It will be a nuclear war with IBM, Google, RedHat, and others.

    Microsoft will find themselves more isolated as time goes on.
    ZDNet Gravatar
    DonnieBoy
    22nd Nov 2010
  • PLease explain why and how MS will be isolated by this ....
    @DonnieBoy

    OK MS follow Oracle Path they buy there open source part .... to use it or kill it that will remain to be seen but i dont see how or why it will isolate MS ....


    One thing is sure This will end up bad
    ZDNet Gravatar
    Quebec-french
    22nd Nov 2010
  • RE: What's Microsoft's role in the Novell-Attachmate deal?
    @Quebec-french They will become more isolated as IT managers like myself find ways to do without Microsoft. It's only a matter of time.
    ZDNet Gravatar
    epitax
    22nd Nov 2010
  • Replace MS with Google
    @DonnieBoy

    and then re-write your post. I bet your tone and emotion will be different then...
    ZDNet Gravatar
    DontBeEvil
    22nd Nov 2010
  • RE: What's Microsoft's role in the Novell-Attachmate deal?
    @DontBeEvil
    Why would he do something like that 'Replace MS with Google'?

    It is like to ask him to 'replace a common citizen (no convicted) with Charles Manson '(convicted murderer)

    and...yes... 'the tone and emotion should be different then'...
    ZDNet Gravatar
    Marco nn
    22nd Nov 2010
  • Obviouslly, MS knows they CAN compete on merits and
    these patents just add even more technology which they can leagally use, unlike Linux which apparently is infringing on patents from a few companies, even MS.

    Linux is losing market share it seems, and they have to stop infringing on other's work or find themselves isolated to hobbiest, and one or two open sorce companies.
    ZDNet Gravatar
    John Zern
    22nd Nov 2010
  • RE: What's Microsoft's role in the Novell-Attachmate deal?
    @John Zern I don't think Linux is actually losing market share, if anything it's actually increasing...Also the patent disputes are still up in the air, as of yet RedHat the largest vendor, has not shelled out protection money and is still in business. The correct way to say that would be "allegedly infringing".
    ZDNet Gravatar
    snoop0x7b
    22nd Nov 2010
  • My fault, I will clarify snoop0x7b
    In terms of "losing market share" I wasn't implying that usage has dropped, it has actually grown, but overall not at the same rate that Windows and OSX have recently. Yes their percentage of overall market share in usage has dropped a bit , but still higher then what it was previouslly in terms of comparing it to itself alone.
    ZDNet Gravatar
    John Zern
    22nd Nov 2010
  • RE: What's Microsoft's role in the Novell-Attachmate deal?
    @John Zern Yes, the world's largest software company, once pleading with the public to leave it alone to innovate, needs government protection through patents to compete.

    Hypocrisy is an understatement to describe what is going on.
    ZDNet Gravatar
    epitax
    22nd Nov 2010
  • That's a load of crap
    And you know it.

    these patents just add even more technology which they can leagally use, unlike Linux which apparently is infringing on patents from a few companies, even MS.

    Prove it, shill.

    ;(
    ZDNet Gravatar
    ahh so
    22nd Nov 2010
    • Flagged
  • RE: What's Microsoft's role in the Novell-Attachmate deal?
    @DonnieBoy
    And that my Donnieboy is a nuclear none responsive statement befitting the notorious "Donnieboy."
    ZDNet Gravatar
    windozefreak
    22nd Nov 2010
  • Dude, can you read?
    @DonnieBoy They are buying intellectual property meaning something that is already covered by a patent. The property is just changing hands from one company to another.

    Microsoft has done this many times before and it doesn't necessarily mean killing the product. MS SQL Server, for example, which is now a key piece of Microsoft's server lineup was originally something the purchased. There are many other examples...but then...you already knew that.
    ZDNet Gravatar
    cornpie
    22nd Nov 2010
  • Donnie - quit talkin' out your backside..
    @DonnieBoy
    In all seriousness.. WHO is it that can't compete? Could it be Novel - whose Netware server OS hasn't been significant in the realm of server OS's since the mid 1990s? Could it be Novel who felt the urge to buy SUSE Linux and STILL couldn't monetize it into a stable income?

    If they were doing such - then why are they selling off their IP?
    ZDNet Gravatar
    Wolfie2K3
    22nd Nov 2010
  • RE: What's Microsoft's role in the Novell-Attachmate deal?
    @DonnieBoy

    I see the kiddy comedy show is still going and you at least have work.
    ZDNet Gravatar
    No_Ax_to_Grind
    22nd Nov 2010
  • RE: What's Microsoft's role in the Novell-Attachmate deal?
    @DonnieBoy You truly are a f**king idiot. You're parents should be slapped every day for giving birth to a twat like you.
    ZDNet Gravatar
    JoeHTH
    23rd May

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