Linux is free software distributed under the general public license, or GPL, of the Free Software Foundation. Linux vendors make money by providing services and software for the open-source operating system.
Linux has emerged as a major competitor to Microsoft's Windows in the market for server operating systems. Servers are high-end computers used to run business applications.
A Novell-SuSE merger will benefit both companies, while creating a tough competitor to Red Hat.
Besides a strong market position and partnerships it didn't have in the Linux market, Novell gets an open-source OS to integrate with its identity management software, directory, application server and other products. SuSE's server OS will also complement the desktop version of Linux Novell acquired in the purchase in August of Ximian Inc.
"It gives them an opportunity to host all of their excellent technology on the platform, and take part in the open-source community in a very strong way," Dan Kusnetzky, analyst for market researcher International Data Corp., said.
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