Microsoft CEO Steve Ballmer discusses resolution of patent issues between Microsoft and Novell that will enable a combined focus on virtualization and Web services management and create new opportunities for both companies' customers. 

Surely you have heard by now, yesterday the unthinkable happened.

There are four main components to the deal: a Technical Cooperation Agreement (TCA), a Patent Cooperation Agreement (PCA), and a Business Cooperation Agreement (BCA). There are also specific commitments Microsoft is making to both the contributors of openSUSE Linux, as well as to non-compensated developers (aka "hobbyists").

The BCA provides a platform for joint reserach, marketing and support. 

The PCA provides patent coverage for one another's customers giving them piece of mind regarding IP issues.

Most interesting to me is the TCA.  Under the TCA, Microsoft and Novell will focus on virtualization technology, web services management, and document format compatibility (specifically Open XML). Novell's participation in the Ecma TC45 for Open XML has paid off and they are committed to producing the code allowing interoperability with OpenOffce, and providing this support back to the OpenOffice.org community. Additionally, Novell has agreed to active participation in the Open XML / ODF translator project.

This deal will improve interoperability in heterogeneous environments containing SUSE Linux and windows, as well as between office productivity suites more effectively meeting the needs of our customers. This is not something we could have or would have done without great interaction and feedback from our customers and partners.