FY 07 was significant in more ways than one for the proponents of Linuxright from its whole-hearted adoption by southern states to the first-ever partnership between an open source (Novell) and proprietary software company (Microsoft).

In FY 07, the government took the lead in adopting Linux for critical applications. The financial sector also considered Linux for security and from the interoperability standards view point, apart from the usual TCO factor. Linux managed to make major inroads into areas like insurance and total branch automation with four out of top five public sector insurance companies already using Linux.

Market players agree that with more and more Linux-based applications emerging as the preferred choice for those operating in micro-finance and non-banking financial companies like the Grameen Bank of Bangladesh, a similar trend is expected to soon catch on in India. The Indian Linux market grew from Rs 144 crore to Rs 205 crore.

Opposites Attract?
The year will be best remembered for the first ever partnership between Microsoft and Novell to build, market, and support a series of new solutions to make the two products work better together. The partnership formed with the intention of servicing enterprise customers, will seek to deliver practical value by bringing two of their most important platform investments closer together, thus enabling interoperability. As per the agreement, Microsoft would officially recommend SuSe Linux Enterprise, and distribute coupons for SuSe Linux Enterprise Server maintenance and support for customers who want Windows and Linux solutions. The customers can then benefit from the use of an interoperable version of Linux with patent coverage as well as collaborative work between the two companies.

Even as the pact was hailed as proof of the importance of Linux, the competitor to Microsofts Windows OS, the terms of the pact have run into rough weather. The general counsel of the Free Software Foundation, which holds the license to Linux, urged Microsoft to re-think on the pledge not to file patent infringement suit against customers who use Novells version of SuSe Linux. The counsel wanted the pledge to be extended to all Linux users or none.

The pact would also enable Microsoft to make leeway into the market share of Red Hat, as its customers would not be able to enjoy the same patent benefit as Novell customers.

Novell on the other hand claimed that the agreement is not an acknowledgement that Linux infringes upon Microsfts intellectual property. Meanwhile, Microsofts Ballmer claimed that the "agreement compensated Microsoft", because Linux "uses our patented intellectual property", the future of the pact certainly does not seem too bright.

For Novell though, the deal was god-sent Microsoft would be paying Novell a sum total of $380 mn, which includes payment for SuSe Linux Enterprise Server subscription certificates.

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