The South China Morning Post reports:

Microsoft Corp and partner Novell are extending their strategic alliance on the mainland with the goal of having more domestic companies purchase their brand of open-source computer operating system Linux.

The initiative is aimed at encouraging greater side-by-side deployments of Microsoft’s Windows and Suse Linux Enterprise, Novell’s retail Linux distribution, by enterprises in the mainland, where use of pirated computer software remains high.

“We recognise that our customers want to use Microsoft products in heterogeneous environments, therefore we are pleased to offer this option,” said Microsoft China corporate vice-president and chairman Zhang Yaqin.

Microsoft and Novell attributed their alliance’s expansion into the mainland to fresh demand from large domestic enterprises.

State-owned People’s Insurance Company of China Holdings (PICC (SEHK: 2328)), Greater China 7-Eleven franchise operator Dairy Farm Group, and server computer maker Dawning Information Industry have each recently agreed to buy from Microsoft three-year licences for Suse Linux Enterprise Server.

The difference between free-to-download versions of the Linux system and branded distributions from companies like Novell and competitor Red Hat Software is the addition of certain proprietary software and technical support with retail packages.

Most enterprise environments have at least a couple of Linux boxes floating around, often for database servers or web sites. Microsoft and Novell’s original deal in 2006 was a bit of a jaw-dropper for the Linux community, but hasn’t been the epochal event that it was originally described as.

This has little to do with software piracy (the target customers are the most pirate software averse in China) and even less to do with jockeying for a leading position in China’s Linux market. The Microsoft-Novell relationship is about Microsoft encouraging its customers to use its tractable Linux partner and Novell gaining access to customers to sell services.

China is probably the largest Linux market in the world, but not for conventional computers. The vast majority of Linux installs are on domestic mobile smartphones, not servers or desktops.

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