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Microsoft open to more Linux-type deals

Microsoft is open to more deals like the recent Novell deal for open-source Linux software, but believes customers will continue to pay for software, its chief executive told an Indian newspaper.

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MUMBAI: Microsoft is open to more deals like the recent Novell deal for open source Linux software, but believes customers will continue to pay for software, its chief executive told a newspaper. 

“We will love to put that kind of agreement in place with anyone who distributes Linux software, Red Hat, whoever else,” Steve Ballmer told Economic Times in an interview published on Thursday. 

Last week, Microsoft and Novell entered a broad set of business and technological agreements to make their products work together to serve corporate customers using both Linux and Windows computer servers.  

On Tuesday, Novell said Microsoft would make upfront payments to it of $348 million under the deal.  

Ballmer, on a visit to India, said while he believed software would be increasingly downloaded and managed off the Internet, it would still also be sold through a more traditional chain.  

“I think some software will be bought, some will be subscribed to and some will be monetised through advertising,” Ballmer said in New Delhi.  “I would say we are moving to a world where there is a lot more electronic distribution. It is a new style of software, not the old-style distributed electronically.”

On Wednesday, Microsoft said Windows Vista, the software giant's first major operating system upgrade in five years, will be available to retail customers on January 30. 2007.   

Plagued by a series of delays, Windows Vista is key to a new product cycle at the world's largest software maker that includes a new version of its Office business software suite.  

Ballmer said people would be impressed by the new software, and also by Microsoft's new portable media player, Zune.   

“Many people will be impressed with what we offer in Zune. Many people are impressed with what they have seen in XBox 360,” he said of the gaming console.

Zune, which hits store shelves next week, will compete against Apple’s iPod music and video player, and Ballmer was confident of its success. 

“The notion that iPod is an island is what plays into one of the strengths of Zune in what we can do,” Ballmer said, downplaying the threat posed by Google.

“People point to Google as Google is the emblem for somebody who has embraced a different business model than we have,” he said.

“The next frontier for us is to embrace a new business model and that is subscription and advertising, where we will be a market leader. If we do not embrace it well there will be issues.” 

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