The combined offering includes SUSE Linux Enterprise Server from Novell configured and tested as an optimized guest operating system running on Windows Server 2008 Hyper-V. It is supported by both companies’ channel partners, including Computer Integrated Services, Dell, Insight, Total Tech Systems, and 21Vianet.

The announcement is a reflection of a deepening Microsoft-Novell partnership first announced in November 2006 covering four areas of technical collaboration: virtualization, standards-based systems management, identity federation, and document format compatibility.

The companies also have partnerships in three other fields: Moonlight, accessibility, and a new SUSE Linux Enterprise Server management pack for Microsoft System Center product. In August, Microsoft expanded its interoperability relationship with Novell by agreeing to buy an incremental $100m worth of subscription certificates for Novell’s Linux products.

Bob Kelly, corporate vice president at Microsoft’s server and tools division, said: The collaboration between Microsoft and Novell has been built by our desire to meet our customers’ and partners’ IT needs, and to deliver solutions that support customers’ mixed-source environments. For customers standardizing on Microsoft’s hypervisor who also have a mixed-source IT environment, this virtualization solution gives that choice.