Customers Strongly Endorse New Microsoft-Novell Deal

January 2 2007

A survey of technology decision-makers shows very strong customer support for the recent agreement between Microsoft Corp. (Nasdaq: MSFT) and Novell Inc. designed to improve interoperability between Windows Server(R) and SUSE Linux Enterprise. Nearly all respondents agree with improving interoperability, having products that work well together, and having tools that make it easier to manage mixed Windows(R) and Linux environments. The survey, jointly commissioned by Novell and Microsoft, was conducted by Penn, Schoen & Berland Associates Inc., a respected independent market research firm.

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"Microsoft and Novell entered into this agreement to make it easier for customers to deploy Windows Server and Linux together," said Susan Heystee, vice president of Global Strategic Alliances at Novell. "The results of this independent research show the majority of approval numbers over 80 and 90 percent. These high numbers don't surprise me because they match the very positive reception that we've gotten from customers. This survey supports our belief when we entered the agreement with Microsoft: Collaboration on behalf of the customer is a winning proposition for all parties involved."

"This survey confirms for us what we've been hearing from customers all along. They want technology vendors to work together to promote interoperability and to stand behind the products they sell and service," said Susan Hauser, general manager of customer advocacy at Microsoft. "Customers who have mixed-source environments want their platform providers to work better together to tackle the complexity and cost of integration. Through our work with Novell, we're doing just that."

Penn, Schoen & Berland conducted 201 interviews Nov. 17-20 with IT executives, managers or staff whose primary job is in a formalized IT department, or who perform IT functions in a non-IT department but who have significant technology purchasing authority. Organizations had to have at least 500 PCs to participate in the survey. The survey did not intentionally target, but did break out, results for respondents whose companies deploy both Microsoft(R) Windows and SUSE Linux from Novell, as well as Red Hat Linux. Among the key findings were these:

-- Ninety-five percent approve of the collaboration between Novell and

Microsoft. Microsoft, Novell and customers all benefit from

collaboration. More than 90 percent of respondents approve of the

Microsoft and Novell collaboration, believing it will benefit IT

customers and increase interoperability of IT systems.

-- Eighty-seven percent said that customers benefit if leading Linux

distributors and Microsoft worked more closely with one another. Four

out of five believe their organization would consider doing more

business with Linux dealers if Linux providers establish an alliance

with Microsoft.

-- Sixty-seven percent said they're more likely to consider deploying SUSE

Linux from Novell. The Microsoft-Novell collaboration increased

customer consideration of SUSE Linux. More than two-thirds of all

respondents, and 79 percent of respondents who currently use Red Hat,

said the agreement was more likely to make them choose SUSE Linux for

their data center.

-- Ninety-seven percent said they wanted platform providers to improve

interoperability of their systems. Interoperability is the area where

respondents want the most focus. Customers want their platform

providers to work together to improve the interoperability of their

systems and provide tools that make it easier for the end user to

navigate both Linux and Windows environments.

-- Eighty-nine percent want technology companies to take responsibility

for the intellectual property in the products they ship. Also, more

than seven in 10 are more likely to deploy Linux with intellectual

property rights, which would limit their corporation's exposure to

risk. These customers see it as the responsibility of their vendors to

work out intellectual property issues before deploying services.

A copy of the full survey results is available at the end of this press release.

About Penn, Schoen and Berland

Founded in 1975, Penn, Schoen and Berland Associates (PSB) has been a WPP (LSE: WPP; Nasdaq: WPPGY) company since 2001. PSB is a strategic communications firm that specializes in research-based recommendations for its clients. PSB has conducted research studies for Microsoft over the past 8 years. PSB has offices in Seattle, New York, Washington, Denver, Los Angeles and London.

About the Microsoft and Novell Agreement

On Nov. 2, 2006, Novell and Microsoft announced a collaboration in which the companies agreed to jointly build, market and support a series of new solutions to improve interoperability, deliver powerful new virtualization capabilities, make Microsoft and Novell products work better together, and provide their customers with patent coverage for their respective products. More information on the agreement between Novell and Microsoft can be found at http://www.novell.com/linux/microsoft and http://www.microsoft.com/interop/msnovellcollab .

About Novell

Novell, Inc. (Nasdaq: NOVL) delivers infrastructure software for the Open Enterprise. We are a leader in enterprise-wide operating systems based on Linux and open source and the security and systems management services required to operate mixed IT environments. We help our customers minimize cost, complexity and risk, allowing them to focus on innovation and growth. For more information, visit http://www.novell.com .

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

NOTE: Microsoft, Windows Server and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Novell is a registered trademark and Software for the Open Enterprise is a trademark of Novell Inc. in the United States and other countries. Linux is a registered trademark of Linus Torvalds.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Penn, Schoen & Berland Survey Results

Key Findings

Customers benefit from the Novell-Microsoft collaboration. Over nine out of ten Information Technology (IT) Decision Makers approve of the Microsoft and Novell collaboration, believing it will benefit IT customers and increase interoperability of IT systems.

Customers are more likely to choose SUSE Linux as a result of Novell's collaboration with Microsoft . After hearing about the Microsoft and Novell collaboration, over two-thirds say they are more likely to consider deploying SUSE Linux at their corporation. Red Hat users are also very supportive of the agreement between Novell and Microsoft, and are more likely to deploy SUSE Linux at their corporations.

Platform providers should work together to solve interoperability problems. Customers want their platform providers to work together to improve the interoperability of their systems and provide tools that make it easier for the end user to navigate both Linux and Windows environments.

Customers remain concerned about potential intellectual property issues with Linux. Over seven in ten are more likely to deploy Linux with intellectual property rights, which would limit their corporation's exposure to risk. Nearly nine in ten see it as the responsibility of their software vendors to work out intellectual property issues before deploying services.

The Concept

-- Nearly all respondents agree with improving interoperability, products

working well together, and having tools that make it easier to mange

mixed Windows and Linux environments.

-- They believe technology companies should be responsible for the

intellectual property rights.

-- Those with a mixed SUSE Linux and Windows environment have slightly

higher agreement scores on all statements.

Do you agree or disagree with this statement?

Ranked by All Agree All Mixed SUSE/ Red Hat

Windows Users

% Agree % Agree % Agree

I want platform providers to

improve the interoperability

of their systems. 97 100 95

Technology companies should

create partnerships to ensure

that their products work well

together. 93 96 89

I want tools that make it easier

to manage IT environments that

have both Windows and Linux. 92 98 94

Technology companies, not end

users or businesses, should take

responsibility for the

intellectual property in the

products they ship and service. 89 96 83

Customers would benefit if leading

Linux distributors and Microsoft

partnered more closely with one

another. 87 92 86

Technology companies should acquire

the intellectual property rights to

their competitors' products when

necessary, so their customers are not

exposed to any risks 82 87 83

My organization would consider

doing more business with Linux

distributors if they had a

technical alliance with

Microsoft. 80 88 75

I am more likely to deploy Linux

that comes with intellectual

property rights, which reduces

my company's exposure to risk. 71 79 87

Microsoft and Novell Partnership

-- Two-thirds are aware of the collaboration between Microsoft and Novell.

- Awareness is higher among those with a mixed SUSE Linux and Windows

environment and Red Hat users.

-- Nearly all respondents approve of the collaboration and believe it will

benefit IT customers and improve the interoperability of IT systems.

-- There is also strong support that the collaboration will lead to

decreased patent infringement risks for IT customers.

Have you heard anything about the

recent collaboration between

Microsoft and Novell? All Mixed SUSE/ Red Hat

Windows Users

Yes 67 81 75

No 33 19 25

ALL RESPONDENTS SAW THE FOLLOWING: On November 2nd, Microsoft and Novell announced a set of broad business and technical collaboration agreements to build, market, and support a series of new solutions to improve interoperability for customers and make Novell and Microsoft products work better together. The two companies also announced an agreement to provide each other's customers with patent coverage for their respective products.

Overall, do you approve of this

collaboration between Novell

and Microsoft? All Mixed SUSE/ Red Hat

Windows Users

Approve 95 100 89

Do not approve 5 0 11

Overall, do you believe this

collaboration will benefit

IT customers? All Mixed SUSE/ Red Hat

Windows Users

Yes 91 98 87

No 9 2 13

Do you believe this

collaboration will improve

the interoperability of

IT systems? All Mixed SUSE/ Red Hat

Windows Users

Yes 90 92 87

No 10 8 13

Do you believe this collaboration

will decrease patent infringement

risks for IT customers? All Mixed SUSE/ Red Hat

Windows Users

Yes 75 88 78

No 25 12 22

-- Respondents agree the collaboration will benefit Microsoft's and

Novell's customers, increase the interoperability of the two companies'

systems and remove potential IP and patent infringement risks.

Based on this collaboration

between Novell and Microsoft,

would you agree or disagree

with the following?

Ranked by All Agree All Mixed SUSE/ Red Hat

Windows Users

% Agree % Agree % Agree

This agreement between Novell

and Microsoft will benefit

both companies' customers. 91 98 87

The agreement will enable

increased interoperability

between Linux and Windows

systems. 88 94 81

With their agreement, Novell

and Microsoft are removing

their customers' potential

risks around intellectual

property and software patent

infringement. 86 92 79

I'm more likely to consider

deploying Novell SUSE Linux

in my company 67 81 79

-- Over three in five respondents think Microsoft is making a stronger

effort to form alliances with other companies.

Do you think Microsoft in general

is making a stronger effort to

form alliances with other

companies so their software works

better with Microsoft's; less of

an effort; or about the same?

Ranked by All All Mixed SUSE/ Red Hat

Windows Users

Stronger effort 61 77 54

About the same 21 13 30

Less of an effort 18 10 16

Does this collaboration make

you more favorable to

Microsoft, less favorable

or have no impact on your

view of Microsoft? All Mixed SUSE/ Red Hat

Windows Users

More favorable 67 83 70

Less favorable 10 4 10

No impact 23 13 21

Demographics

Which of the following operating

systems does your company currently

use in its IT infrastructure?

Please select all that apply.

Multiple responses permitted.

Ranked by All All Mixed SUSE/ Red Hat

Windows Users

Microsoft Windows 98 100 100

Sun Solaris 36 48 59

IBM-AIX 35 48 49

Red Hat Enterprise Linux 31 40 100

Novell SUSE Linux 26 100 33

Free Linux that is not backed

or supported by a commercial

Linux company 19 38 30

Other 8 10 16

Research Overview

Objectives: Measure market perception of the recent collaboration

between Microsoft and Novell.

Methodology: 201 online interviews in the United States.

Timing: November 17 - 20

Audience: Information Technology Decision Makers - An IT executive,

manager or staff whose primary job is either in a formalized

IT, information systems or MIS department, or one who

performs IT functions in a non-IT, ISM, or MIS department,

with significant decision-making authority related to

technology purchases. Their organizations have to have at

least 500 PCs.

PSB did not intentionally target, but tracked results for

ITDMs whose companies deploy both Microsoft Windows and

Novell SUSE Linux and Red Hat Users.

All figures in the report are percentages unless otherwise

noted.

Audience N-Size Margin of Error

@ 90% Confidence

ITDMs 201 + or - 5.8%

Mixed SUSE/Windows 52 + or - 11.4%

Red Hat Users 63 + or - 10.4%