| | Today, Microsoft and Novell announced an historic new initiative. Important because it means a lot to you as our partner. (See full press release). Let me begin by quickly outlining what we just announced. Microsoft and Novell, starting today, have agreed to build and market solutions so that Novell's technology works on Microsoft's and vice versa. Specifically, customers will now be able to run virtualized SUSE Linux Enterprise on Windows or Windows on SUSE Linux Enterprise. This landmark agreement also calls for both Microsoft and Novell to provide patent coverage to each others' customers for our respective products. Why is that important? It's important because our customers shouldn't have to worry about legal matters when it comes to which operating system they use. They also shouldn't have to worry about barriers such as intellectual property agreements, who owns which patent portfolio, and indemnification. None of those issues move their business forward. Now many of those barriers have been removed. I am also proud to tell you that earlier today Novell and Microsoft demonstrated, by our words and actions, that we can work together for the mutual benefit of our customers. Steve Ballmer, Microsoft's CEO, was very passionate and genuine in his support for this agreement. He spoke about how it will help customers leverage both the Microsoft Windows platform as well as our SUSE Linux Enterprise platform. He said this combined solution will give customers choice and flexibility in building their technology environment. As we all know, choice and flexibility are both something our partners often complain are in short supply. We're determined to change that. I'd like to also build on what Steve said, and today I had the opportunity to make some of these points in person to the assembled press, analyst, and industry experts. This agreement between us and Microsoft is a key cornerstone to our overall Novell promise to deliver the open enterprise to our customers, working in conjunction with you. It's an agreement where we can leverage a mixed environment- with open source and open standards based software- on our customers behalf. It's an agreement that will accelerate Novell's stated goal of helping our customers reduct cost, manage complexity and mitigate risk. Together, we are both in a better position to help customers achieve this. I titled this a &ldquolandmark&rdquo announcement, and I truly believe it is. Transformational in its scope and important to us, our customers and our partners on many levels. You may wonder how this changes our relationship with Microsoft. It's no secret we've competed with them in the past. And we still will. However, it's also important for us all to remind ourselves that all organizations, particularly those in our industry, need to adapt and change. Further, for whatever differences we've had with Microsoft over the years, we also share a number of the same values. A strong belief in building solutions for our customers and an unwavering belief in the power of technology and innovation. This is the beginning of a new and exciting chapter for Novell. It's also a new and exciting opportunity for us together. Working together we can do a better job for the customers we serve. I'm truly excited about this transformational announcement. The payoff will be better results where it counts most. On helping us deliver innovative solutions so our customers can grow and innovate. We look forward to working together. Best regards,
Ron Hovsepian
CEO, Novell
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