The Novell Open Business Handbook
Technology Partner Guide for OEMs
Table of Contents
- Introduction & Market
- Novell PartnerNet for Technology Partners
- Membership Levels
- Novell Open Business OEM Program
- Novell Standard ISV/IHV Agreement
- EMEA OEM Order Process Guide
Introduction & Market
- Fact: Linux is projected to grow at compounded annual growth rate of 14% between 2002 and 2007.*
- Fact: A major area of concern for customer decision makers is the availability of applications on Linux. (16%)
In Linux and Open Source, Novell is the world's No.1
Novell offers you the advantages of:
- Partnering with the only company that can offer a complete set of Linux solutions, from the server to the desktop
- A full range of class-leading applications designed to run in the Linux and open source environment — from office productivity, to collaboration services, to application development
- A highly developed and mature support ecosystem, including Technical Support Services, Education and Training Services, Developer Services and Consulting Services
- All delivered on a truly global basis
Novell offers the world's leading identity-driven services
This enables you to unify identities across resource and location barriers and provide your customers with a robust and secure foundation for delivering the right information to the right people at the right time.
So what do Novell's advances in these two growth areas mean for your business? By partnering with Novell through the Novell Open Business Program for Technology Partners you'll be able to combine Novell's leadership with your own solutions in ways that will drive your business forward in four key areas, enabling you to do the following:
Grab market share — now
In a rapidly expanding market it is the companies that establish themselves now that will build their reputation and position themselves ready for long term success. As the world's No 1 Linux provider Novell enables you to achieve this, with the advantage of a trusted global certification programme, a mature ecosystem, unrivalled enterprise support and market leading technologies.
Accelerate product development
By tapping into Novell's integration, tuning and certification services you will be able to embed new technology into your solutions more quickly, giving you a new agility to respond to customer needs and potential opportunities. Access to code through Novell's extensive Developer Support Program will significantly reduce development costs.
Broaden your appeal and reach
Solutions are increasingly being judged by their ability to deliver identity-driven access. By using the world's leading identity-based services you will be able to broaden the appeal and reach of your solutions, making them securely available across platforms based on trusted identities. Together with Novell's SUSE AutoBuild technology, you will be able to quickly deploy all your solutions on all leading hardware architectures, thereby significantly broadening their appeal and increasing your sales opportunities.
Rip costs out of your business
Now you can license Novell technologies and market commercial solutions based on cost-effective open source software, while at the same time avoiding the cost of supporting low margin proprietary software. In fact Novell can reduce the cost of your solutions and therefore increase your margin.
Novell has now made it easy for you to realise these benefits quickly and cost-effectively — through the Novell Open Business Program for Technology Partners.
Introducing the Novell Open Business Program for Technology Partners
The long-established and respected Novell PartnerNet for Technology Partners Program has been delivering the technology and marketing tools Novell partners need to develop and market solutions incorporating Novell technology. The Novell Open Business Program for Technology Partners now goes further, with a flexible new commercial framework designed to minimize the risk of exploring new market opportunities, enabling you to grow your business faster by capitalising on opportunities more quickly and effectively.
Novell PartnerNet for Technology Partners
Expand your development opportunities with Novell
For Independent Software and Independent Hardware Vendors (ISVs and IHVs), there's never been a better time to partner with Novell®. Along with a high level of commitment from strategic partners such as Dell, HP, IBM and Oracle, Novell channel partners have also embraced the Novell Linux* strategy at a rapid pace, increasing their Linux solutions business significantly over the last year. With this large and growing partner ecosystem, Novell now has unparalleled resources for delivering Linux solutions to enterprise IT customers worldwide. And Novell has done this without abandoning its existing partners and customers. Whether your strategy revolves around Linux, NetWare, or other Novell technologies, you can be assured of access to the entire Novell ecosystem.
Now you can reach those customers—and other Novell partners too: Plug into the power of Novell PartnerNet® and drive your business forward. Leverage our global partner ecosystem to make your product the tool of choice our partners use to sell and provide services around the customer solutions they deliver every day. Your product could be exactly what a Novell salesperson or Novell solution provider needs to close a sale or make an implementation work.
Leverage the Novell vision
Why are so many channel and technology partners increasing their commitment to create, sell,implement and support solutions based on our technology? It's simple. Novell now offers compelling advantages that other vendors and Linux distributors simply aren't able to match. Novell is the only vendor that provides a full range of Linux services—including servers, desktop solutions, system management tools, a standards-based development environment, identity management, and security and collaboration solutions—to its customers. With the acquisitions of Ximian®, a leader in Linux desktop tools and services; and SUSE® LINUX, aworld-class Linux distribution provider, Novell has greatly expanded its ability to serve the full range of customer Linux and open source needsfrom the desktop to the data center.
More importantly, the rapid growth of our partner ecosystem around Linux opens up many new opportunities for independent software and hardware vendors, both in the types and number of Linux solutions they can bring to market and how they're delivered. Novell PartnerNet for Technology Partners membership can help you port, build, co-market and (if appropriate) resell your product with licensed Novell technologies,including SUSE Linux. Connect into the Novell partner ecosystem and open your business up to Novell development and support resources, go-to-market activities and business solutions that enable you to do so in an efficient and effective, self-paced way. Combining key elements of the SUSE Linux Technology Partner program and Novell DeveloperNet® program, the Novell PartnerNet for Technology Partners program brings together the best elements of these three programs. Through the PartnerNet for Technology Partners program, software and hardware developers can experience a seamless partnering experience as they develop and go to market with Novell. Expand your choices—and your options Some vendors have tied their development and integration platforms to proprietary technology, effectively limiting your market reach to their market share. Not Novell—our technologies are cross-platform, open and built on industry standards.
With SUSE Linux, in particular, there has never been a more viable environment for you to build upon. Why settle for fewer opportunities to sell your products and solutions when partnering with Novell can give you so much more?
- SUSE Linux Enterprise Server provides a common code base for seven hardware architectures— from x86 workgroup servers to the mainframe. This common code base allows developers to ensure code and system consistency across all seven platforms and easily port applications based on x86 to other hardware architectures such as 64-bit AMD* and Intel* chip sets and IBM POWER* and z/Series* servers.
- Novell Open Enterprise Server is a solution comprised of SUSE Linux Enterprise Server, NetWare® and a rich collection of networking services (including Nterprise® Linux Services) which will transparently interoperate between the two environments.
- Novell networking services (messaging,collaboration, portal, workflow, content management, directory, management, storage, etc.) work across all major platforms: Linux,UNIX*, NetWare or Windows*.
Shorten your time to market Joining the Novell PartnerNet for Technology
Partners program equates to outsourcing much of the development and go-to-market activity that makes your solutions enterprise ready. Working with Novell, you can:- Build on, blend together and leverage the strengths of open source and Novell technologies to solve business problems by creating business-class solutions.
- Leverage secure and scalable Nterprise networking services to make your solution network-aware and available on all leading operating systems.
- Place a ready-made identity and access management foundation at the heart of your solution with Novell Nsure™, which includes Novell eDirectory™.
- Transform your application functionality into a Web service with the Novell exteNd™ suite. Integrate or re-purpose existing systems independent of the customers' present systems (ERP solutions, CRM packages, databases, etc.).
Becoming a member of Novell PartnerNet will help you take advantage of these new opportunities. PartnerNet is an integrated program, with technology partners, solution providers, and training partners meeting their individual needs, but also able to work with each other.
The PartnerNet program has three membership levels: Silver, Gold and Platinum. This tiered model allows you to enter the program at a level that fits your business model. You have the flexibility to match your existing skill sets and resources to the goals that make sense for your business. This can include partnering with solution providers and training partners to sell or educate customers about your solutions.
Novell PartnerNet for Technology Partners features and benefits
It's easy to develop solutions with Novell and pluginto the Novell partner ecosystem—where you can connect with a multi-channel go-to-market strategy that emphasizes promoting partner products to Novell channel partners, systems integrators and customers. Co-marketing Opportunities Taking advantage of the Novell partner ecosystem connects you with large audiences of partners and customers who may be looking for products such as yours. User and customer communities, solutions and developer groups, and Novell partner channels are all available to you as potential marketing audiences.
Some opportunities are free; others are fee-based. Whatever activities you choose, the co-marketing you do with Novell extends your opportunities to get worldwide exposure by leveraging our global marketing efforts. For example, if you've developed and certified a product (software or hardware) that brings solid business benefits to our mutual customers, post it in the Partner Product Guide.
The Partner Product Guide is the ultimate showcase for partner products that run with Novell technologies, and it's free,quick and easy to post information about your product. Use the Marketing Opportunity Planner to plug into Novell marketing activities, with dozens of opportunities and ways to get the word out about your product. Leverage the Novell global reach to market your product to Novell customers and channel partners by sponsoring Novell sales tools or participating in events, Webcasts, joint advertising, training and education, and Novell press relations activities. Opportunities from the Planner connect you to a variety of Novell communities, including customer and user groups, developers, and Novell partner and sales channels.
YES CERTIFIED testing and logo use
Novell now provides an integrated Novell YES CERTIFIED software and hardware certification program in a single common process administered through the PartnerNet program. ISVs and IHVs are required to be members of the PartnerNet program in order to certify their products. Platinum and Gold Technology Partners can self-test using Novell certification kits and submit Novell/SUSE certification results directly to Novell. Silver-level technology partners may self-test up to three applications for SUSE Linux, but for other Novell solutions they are required to submit their product to a Novell Authorized Testing Center (NATC). Once the product has been reviewed and approved, a certification bulletin will be posted on the Novell Web site describing the exact details of the certification. The YES mark is a globally recognized and respected seal of approval from Novell for your software or hardware products. The YES mark signifies to customers that your solutions are tested and proven compatible with specific versions of Novell software, including SUSE Linux. Partners will be able to use the certification marketing material once the bulletin has been posted.
For more information, visit http://developer.novell.com/yespgm.
Ready for SUSE Linux
Get your products in front of our customers as early as possible by registering your solutions as"Ready" with Novell prior to obtaining a YES certification from Novell. While not a certification of compatibility, the Novell "Ready" program allows vendor products to be self-tested and registered in the Novell Partner Product Guide, indicating they operate with specified Novell technologies, including SUSE Linux. (Novell provides no testing or validation of Ready compatibility claims.) For more information, see http://www.novell.com/partners/isvihv/ready/
Novell Partner Product Guide
Customers worldwide use the Novell Partner Product Guide to find compatible solutions for their needs. List your solutions in the Guide and gain immediate access to a broad customer base. More than a thousand customers a day search the Partner Product Guide—you may have just what they're looking for. Take a look at http://www.novell.com/partnerguide.
Tools you can use
The Novell Resource Center is packed with sales and marketing tools you can use to understand,position and sell your products in the Novell world. Sales and technical training educate our partners on the Novell products and solutions that are currently available. By understanding what these are and how they work, you can better see where your own products and solutions fit into solutions that our customers and partners are putting together and using every day. The Novell Resource Center also offers many pre-developed demand generation tools you can modify or simply leverage as is to meet your own promotion needs. These co branded tools include direct mailers, HTML e-mails, Web banners, telemarketing scripts and more. See http://www.novell.com/resourcecenter.
Novell Tech Select service
Included with all PartnerNet for Technology Partner memberships, Novell Tech Select Service is the premier combination of Novell support tools, development resources and services. This annual subscription, with a collective value of over USD $6,000, includes the Novell Professional Resource Suite (NPRS), additional Subscriber Portal access, exclusive training materials and Novell electronic support incidents. Tech Select combines all the benefits of the Novell Professional Resource Suite with an outstanding set of additional technical tools and development resources.
For more information, visit: http://support.novell.com/techselect/.
Developer services
Novell has a long established Developer Services organization, operating from Provo, Nuernberg and Bracknell, covering all of Novell's software and hardware development technologies, including Linux, NetWare, Device Drivers, Identity Management, Messaging, Collaboration and Web Services. An import differentiation between NTS' support and Developer Services is that NTS supports the use of Novell's products, while Developer Services supports partners in developing their products, utilizing Novell's technologies.
Within the organisation are a number of teams which focus on software support, PC systems support, product certification, PBU interlock, provision of Developer Kits, as well porting and migration. Developer Services web presence is through Novell's developer web site, http://developer.novell.com and Novell Forge, http://forge.novell.com
Access to Developer Services is through support subscriptions. Silver Level Technology Partners get five free service requests (SRs) which they can use for either for NTS support or developer support. OEMs will normally have annual Developer Support agreements, either stand-alone or as part of a larger inclusive Partner Support Agreement, covering a partner's technical support and development support needs.
The support delivery to each partner is managed by a Developer Manager, based in EMEA. The Developer Manager's role is to assist in the initial engagement with the partner, to advise on porting and migration issues as well as regarding support contracts. Once a Developer Support contract is in place the Developer Manager ensures that the partner's support requests are prioritized within Developer Services and handled smoothly and efficiently. Additionally the Developer Manager is responsible for bringing advance information regarding Novell product road maps to the partner or OEM, and for discussing roadmap interlocks between the partner and Novell to ensure synergies in products and strategies. At times the Developer Manager may also enlist the assistance of Technology Strategy Managers or Novell Product Management and Engineering staff, depending on needs.
Porting & migration services
For Porting and Migration needs, Novell has facilities both in EMEA and the USA. There are a number of highly skilled architects and engineers that can assist a partner with such things as solving complex development problems, porting to different operating systems or integrating with security and identity management technologies. Their mode of operation will vary on a case by case basis. It may be some advice given by 'phone and e-mail, or it may take the form of on-site assistance, porting workshops, developer training days or building a proof of concept together, in order to solve a problem. Within EMEA there is the main Novell Porting and Migration Center (PMC) in Nuernberg, as well as additional satellite labs in Bracknell UK and Frankfurt. Additionally there is Novell's US Porting and Migration Centre operated by Developer Services in Provo, Utah. Furthermore Novell is forming a Porting and Migration Network with a number of it's key global partners, so that resources are combined for the benefit of our ISVs and OEMs. This means that for certain activities, a partner with Novell may actually go to a local PMC belonging to one of Novell's strategic global partners. This reflects the very strong relationship that exists between Novell and the strategic global IT companies, which is being used to benefit Novell's Technology Partners and OEMs.
For more information about Developer Services contracts, visit: http://developer.novell.com/devserv/.
Novell Forge
Novell Forge is a free, online resource for all Novell and open source developers that does not require registration. However, additional benefits are available for those who register/profile. Registered members of Novell Forge can purchase additional Novell deliverables and support options a la carte, including physical delivery of software evaluation and development kits through http://support.novell.com/subscriptions/index.html and developer support requests at http://developer.novell.com/contact/devsup_phone.htm.
Membership Levels
Join the momentum building around Novell. Three Novell PartnerNet for Technology Partners membership levels enable ISVs and IHVs of any size to choose a level of co-marketing resources and opportunities, development and product support, and hard-copy deliverables that best suit their budget and business model.
Silver level
Novell PartnerNet for Technology Partners Silver membership offers free online access to the complete range of Novell co-marketing, sales and development resources, including access to the Technology Partner Portal and online Marketing Opportunity Planner. Silver membership offers one annual Tech Select software subscription, which includes the Novell Software Development and Evaluation Library (NSEDL), and the Novell Developer Kit. In addition, five product and developer service requests are provided, and discounts on additional services are available. Silver-level members seeking YES certification of products must submit them to a Novell Authorized Testing Center (NATC), except for software on SUSE Linux.
Gold level
Gold-level membership allows partners to increase the level of cooperation between themselves and Novell, and to enlist resources to drive the partner relationship to a higher level. Participation is by contract and the terms and conditions of the contract are tailored to meet specific partner needs. For example, Gold membership requires purchase of an additional support or developer package, such as the DS 100 offering from Developer Services, based in part on your needs and business plan. Along with an increased level of base deliverables, such as multiple copies of software subscription services, additional services available to Gold partners include:
- Customized developer training, including porting and migration training
- Preferential access to Porting and Migration Labs
- Ability to conduct self-testing for certification (training required)
- Named Partner Enablement Manager (PEM) and Partner Technology Manager
- Additional co-marketing opportunities
Platinum level
Platinum membership is by invitation and represents Novell strategic alliances with major industry partners. Platinum relationships are formulated around synergistic opportunities to maximize return on the partner relationship. Platinum partners enjoy the highest level of developer support and partnering services available from Novell, with formal statements of work that can include services, deliverables and activities, including but not limited to:
- Joint marketing plans
- Market development funding agreements
- Dedicated engineering support
- Advanced developer training
- Partner business reviews
- Named Alliance Manager
For more information please visit http://www.novell.com/partners/isvihv/features.html
Novell Open Business OEM Program
Novell is dedicated to helping partners build compelling, profitable solutions. The Novell Novell Open Business Program offers commercial licensing- and services options for Independent Hardware and Software Vendors and System Builders , to pre-install, embed or bundle Novell software with their products. Below, you'll find just a few examples of vendors for whom the Open Business Program might be of big interest:
- PC/Server manufacturers (A & B brands, Assemblers)
- Full Stack Solution Providers
- Software Appliance Solution Providers
- Managed Service & Hosting Providers
- Networking HW Appliance Vendors:
- LAN/SAN/WAN, UPS, VPN, Carrier
- VoIP, PBX
- Routers, Switches - Vertical Market Devices (Manufacturing, Medical, Industrial, Services)
- POS, Kiosk, Reverse Vending, Hospitality
- Copiers, ATM
- Magnetic Resonance
- Mobile Data Solutions
Novell Open Business includes flexible licensing; porting and migration services; attractive pricing and discounts; and standard contract frameworks. The Novell Open Business Program helps you to expand into new markets, capitalize on new business opportunities and accelerate your growth. To qualify for a direct OEM relationship with Novell, your organization must:
- Be an active member in the Silver-Level of the Novell PartnerNet for Technology Partners
- Assemble or manufacture brand-identity/white-box servers or sell pre-configured vertical software solutions
Optional but strongly recommended program options are:
- "Gold" or "Platinum" Level Membership in the PartnerNet for Technology Partners
- Porting & Migration Services limit your investments in the programming- and porting phase and ensures that your solution gets compiled according to Novells quality standards
- Technology Partner Support (TPS) option, to ensure that Novell's mature services eco-system provides you with the Level-3 support you need to guarantee appropriate service levels towards your customers
- YES certification increases the value offered to your customers, providing additional assurance
Open- and closed source software
Novell offers closed-source and open-source software products. For a closed-source product (e.g Open Enterprise server or NetWare) Novell offers user-licenses as well as upgrade protection for updates and future releases.
For open-source software (e.g. SUSE Linux Enterprise Server) it's not necessary to purchase user-licenses as the Novell open-source products are under the General Public License (GPL) On open-source software, Novell provides upgrade protection offerings as well. The upgrade protection on open-source software, includes the right to deploy Novell validated patches and future-releases.
Licensing options In the following text we won't distinguish between open-source and closed-source software unless specified. "Licensing options" in the context of open source will therefore more describe potential deployment scenarios like:
- Pre-Load
- Drop-In the Box
- Appliance
- Vertical Solution
- Component
Pre-load
The Pre-load option allows that Novell Products be factory-installed onto pre-configured hardware or integrate Novell software into a vertical software offering. Participating in factory-installation gives you control over the software installation process while providing you the opportunity to check the operation of your bundled systems before they leave the factory. This service also makes installation and first-time use of your products considerably faster and easier for the end user.
Drop-in the box
This option is appropriate if you have a number of different hardware configurations or software versions, making it too expensive to pre-load the Novell software. With the Drop-In the Box option, you may ship your solution together with an Original Novell Software media kit. In order to save cost and/or further brand the software media, you may also be allowed to produce your own software media kit, based on gold masters provided by Novell.
Appliance
In an Appliance solution (e.g. a security system) the Novell software typically acts in a hidden mode and is sometimes limited in functionality in order to work just as an operating-system platform. In an Appliance, the Novell solution is subject to special pricing, reflecting the total value of the solution and the feature set it is used for.
Vertical Solution
Novell offers special license- and pricing options for various verticals in order to reflect the special business needs and configurations of this target market. One example for a vertical solution is the Novell SUSE Linux Retail Solution (SLRS)
This is a retail-optimized Linux platform that helps retailers reduce costs by using an open and flexible solution that decreases complexity and enhances store operations - all at a low total cost of ownership (TCO).
Component
Occasionally there are scenarios, where just a single functionality of a Novell-product is needed and not its full feature set. Therefore in rare instances, embedded in a business-plan and at Novell's sole discretion, a component-based pricing-model can be agreed.
Licensing Arrangements at a Glance
| Pre-load | The computer system or software solution is delivered with a full Novell product pre-installed on it. Original Novell Media Kit or adopted media are also delivered with the system |
| Drop-in | Original Novell Media Kit or adopted media are delivered within the packaging of a computer system or software product |
| Appliance | Novell product runs hidden on a computer system or is 100% embedded in the shipping product or setup routine of a software product |
| Vertical Solution | Special business model for vertical or horizontal solution sets, e.g. the Novell SUSE Retail Solution |
| Component | Allows you to license a specific functionality instead of a full product |
Pricing
The reference price-list for OEM purposes is the Novell System Partner Program price-list (NSPP). This price list is distributed monthly and can be obtained at: http://www.novell.com/licensing/price.html
Within the OEM contract with Novell, a discount on the list prices of the NSPP price list is agreed upon. Your minimum revenue commitment per year should be at least $50.000 after discounts.
There is a standard base discount on the NSPP price-list for all OEM Partners. Additional discounts are possible, but are subject to:
- PartnerNet for Technology Partners Membership Level
- Contractually agreed revenue commitment
- Investment in Novell Development, Porting & Migration and/or technical Services
In general, you may expect Novell to reward your investments in Novell's services by granting further discounts on product licenses as well as on upgrade protection options.
The contractually agreed discount (Base Discount+Service Recognition+Volume discount) applies on all product licenses and upgrade protection options listed in the NSPP price-list. The following table gives you an overview about the current discount structure for Novell in Europe, Middle-East and Africa:
- Product licenses and upgrade protection: agreed OEM discount
- Novell Technical Services (TPS): 15% on list-prices
- Novell Developer services: no discounts
- Novell Technology Partner program fee: no discounts
- Consulting Services: project pricing or Master Service Agreements
- Porting & Migration Services: project pricing
Multi year upgrade protection options
In order to ensure a long term, price-attractive Upgrade Protection for their solution, Partners may enter a multi-year Upgrade Protection agreement with Novell. Prices for the these multi-year agreements are based on the 1-year Upgrade Protection list prices as of the NSPP price list:
- 2-year Upgrade Protection: List Price = 180% of 1-year
- 3-year Upgrade Protection: List Price = 250% of 1-year
- 4-year Upgrade Protection: List Price = 325% of 1-year
- 5-year Upgrade Protection: List Price = 400% of 1-year
To take advantage of the Multi-Year Upgrade Protection Option, Partner must order and pay the full amount for an agreed number of licenses upfront.
Payment
Typically, the OEM is asked to provide Novell with a quarterly prepayment, that reflects 70% of the agreed annual license/upgrade protection business volume.
So if the Partner and Novell have agreed on a yearly volume of 150.000$ on licenses and upgrade protection, the prepayment is:
150.000$ x70% /4 = 26.250$ quarterly prepayment
Also on a quarterly basis, Partner provides Novell with a Royalty Report, summarizing the details and volume of his actual sell-out.
Prepayment schedule
Prepayment Schedule is outlined in Exhibit A to the ISV/IHV contract. Frequency of payment may be monthly or quarterly, depending on the contract.
Royalty report in excess of prepayment
If royalties payable exceed the prepayment in any reporting period, partner shall pay the additional royalties due.
Prepayment not exhausted in reporting period
Any quarterly/monthly prepayment not exhausted in the monthly/quarterly report shall be carried forward to the next month or quarter. However, this does not relieve the partner's obligation also to pay the following monthly/quarterly prepayment.
If any prepayment balance is remaining at the end of the agreement, this amount shall be forfeited by partner to Novell.
Please note that Novell Services (Program Fees, Developer Services, Technical services, Consulting Services and Porting & Migration are not part of the pre-payment processes. Novell Services as listed are invoiced with their provision or completion.
Novell Standard ISV/IHV Agreement
Novell's independent Hardware/Software Vendor channel is different from distributing through reseller channels. While the reseller takes the product and generally sells it "as is," the ISV/IHV takes the product, adds value, and then passes it down the distribution chain. Because the ISV/IHV partner creates a new product from Novell and their own proprietary or non proprietary components, they have special needs. In order to address these needs we have tailored a contract agreement to perfectly address these needs.
The Independent Hardware/Software Vendor Agreement is made up of five different parts:
- General Terms and Conditions, T&C's
- Exhibit A: Novell Software, Prices and Special Conditions
- Exhibit B: Partner Computer Systems
- Exhibit C: Royalty Report
- Other Exhibits
General terms and conditions, T&C's
The T&C's constitute the main body of the Agreement. All the clauses in this part of the IHV/ISV Agreement, constitute the legal framework of our Partnership. Novell strongly advises you, that if after reading it, you have some questions or you need clarifications regarding some clauses on the Agreement you contact us. We will be more than happy to listen to your questions and feedback and to assist and provide you with the answers to your questions.
This part is standard in all our ISV/IHV agreements. In the first section definitions to terms such as Bundled Product, Computer System, EMEA, Novell Software, etc. can be found. Then the conditions of Novell appointing your organization as a Novell "Authorized Original Equipment Manufacturer" or Novell "Authorized ISV/IHV" are set.
In today's global economy the great majority of our Partners have subsidiaries in different parts of the world where Novell also has a presence. If this is the case for your organization and you would like your subsidiaries to have the possibility of participating in this agreement, this can be arranged as described in Clause 4. Subsidiaries.
Section 6 of the Terms&Conditions of the contract covers the areas of Marketing, End Customer Satisfaction and Support. Here Novell is granting you its authorization for the use of Novell Marks and Trade Names, and for the use of Authorized Partner Title, as specified within the terms of the clauses.
At Novell we take End Customer Satisfaction very seriously. Novell wants to make sure that all customers are highly satisfied with our software products regardless of the way our product is bundled with our Partners' products or services. For this reason Novell has included a clause to guarantee End Customer Satisfaction and a feedback mechanism to allow us identify any suspected or actual problem with any of our products. Testing and Certification of both Linux and non Linux based Software, together with Technical Support provided to End Customers that acquire the Partner Product either directly or indirectly from a Partner, is recorded in this section of the Agreement. This is to guarantee End Customer Satisfaction when using the Partner Bundled Product.
The Agreement also records the terms for Placing Orders & Terms of Payment, including Delivery Terms, Invoice Dispute and Title & Risk of Loss of the Novell Software and Royalty Reports.
Intellectual Property Rights, Indemnification, Warranties and Limitation of Warranties or Remedies are a very important part of the agreement. It is at this point where the so called "small print" appears. The difference is that there is no "small print" in our Partnership, this is why when you move into the sections mentioned you will find the "small print" become the "big print". As an example you can reed in page 8 the Disclaimer in reference to the paragraph immediately above it, Actual or Potential Product Infringement. The Disclaimer reads:
"...THE ABOVE STATES THE ENTIRE LIABILITY OF NOVELL WITH RESPECT TO INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADEMARKS OR ANY OTHER FORM OF INTELLECTUAL PROPERTY RIGHT BY ANY PROPRIETARY SOFTWARE SUPPLIED BY Novell."
This section of the Agreement ends reviewing the Termination and General Provision clauses such as: Law, Notice, Force Majeure, Survival Terms, etc.
So far we have not talked about the Product, Prices, Agreement Term and Expiration Date of the Agreement, which Terms&Conditions are defined in this section of the Agreement. The reason for this is that the general T&C's related to the above mentioned could be modified in the Exhibit A.
Exhibit A: Novell software, prices and special conditions
In this Exhibit the product or list of products that you are interested in buying from Novell are listed, as indicated by clause 5.1. Eligible Products. The Price, if specially agreed or the reference to the (at the time) Current Novell Price List or Novell Linux Price List with your entitled discount. It will also be stated in this Exhibit A as indicated by clause 5.2. Prices of the T&C's of the Agreement.
The Commencement Date of the Agreement is the date, unless otherwise specified in this section of the Agreement, that Novell has signed the Agreement (page 1 of the Agreement). The Termination Date, unless otherwise specified here, as defined in 1.9 Expiration Date shall be 31 October in the year after the year of signature of the Agreement. This means that, for example, if Novell signed the Partnership Agreement on 1 January 2005 it would expire 31 October 2006.
In this Exhibit A you will also find the definition of the Territory or area where your organization will be selling your products. This area could be your local country of operation like Germany, a series of countries like Germany, Austria and Switzerland, or Worldwide.
Exhibit A will also contain any other special condition that modifies or supplements the General Terms&Conditions set out in the Agreement.
Exhibit B: partner computer systems
Exhibit B describes how you will utilize the Novell Software described in Exhibit A. The Novell Software could be preinstalled within your hardware or bundled in your software product. If this last description is the way you as a Partner will utilize Novell Software, a description of your product will be stated here.
Exhibit C: royalty report
Royalty reports are used to record revenue and detailed product information as a means of tracking the Partners performance against contracts. The report must follow the guidelines listed in the Royalty Report clause. To make things simpler to our Partners we have included a copy of the Novell Royalty Report Form that can be downloaded here (Requires Open Office).
Other exhibits
Additional Exhibits if present could define, describe or supplement the Agreement. The scope of this Exhibit really varies and is specific to our Partnership for the Independent Hardware Vendor or Independent Software Vendor Agreement.
We hope that this quick guide to the Independent Hardware Vendor or Independent Software Vendor Agreement has helped you understand its content. If you have any questions about the agreement that you would like to discuss to obtain further clarification, please do not hesitate to contact any of the Novell Alliance Team members. They will be pleased to assist you.
EMEA OEM Order Process Guide
Product orders
OEM Partners order products from Novell System Partner Price list — Linux Product is ordered from Novell Linux Product price list for NSPP Customers. Depending on the Terms & Conditions of the customers contract, the customer can either:
- Order product and pay for licenses as they need them.
- Order product and report royalties as they sell them on to their customers.
OEM partners can submit orders via email (emea-orders@novell.com) or Fax (+353.1.605.8088). The following information needs to appear on the purchase order before the order can be entered:
- Purchase order number — A reference number which the customer wants to be billed under.
- Part numbers & quantities requested or the total number of licences/Media required for each product.
- Price which the customer expects to be invoiced for. (If the customer is paying up front. The amount will be zero if the customer is paying monthly royalties for usage. This will be defined up front in the contractual terms).
- Bill to & Ship to addresses — the bill to address should be the contract address.
Orders are reviewed by Novell Credit department who will ensure that the OEM partner is within their credit limit and there are no payment issues. ITS ensures that the order complies with US Trade & export laws. Once these checks are complete the orders are then sent to the Vendor for shipping. Products are classed in the price list according to their lead times. The classification system used indicates the expected average number of days for product to be shipped from Novell after receipt of customer order. Products are classified into three main categories:
- "e" - Electronic/billing parts, 1 day average lead time.
- "1" - Physical parts, 3 day average lead time.
- "2" - Physical parts, 5 day average lead time.
Royalty orders
Depending on your contract terms you should, either report usage of the Novell products after a certain period of time, after the product has been sold this report should be sent to emea_contracts_admin@novell.com or you may be required to pay the Royalty amount at the same time as you purchase a product, before product is re-sold. These reports should be send to emea-order@novell.com
EMEA Sales Operations Contacts (January 2005)
| Country | Contact Person | Telephone No | Email Addres |
| France | Delphine Taburet | +353 1 605 8283 | Dtaburet@novell.com |
| Finland | Delphine Taburet | +353 1 605 8283 | Dtaburet@novell.com |
| Switzerland | Denise Eigenmann | +353 1 605 8118 | deigenmann@novell.com |
| South Africa | Jean Baptiste Bailly | +353 1 605 8148 | JBailly@novell.com |
| Spain | Ana Perez | +353 1 605 8132 | AnPerez@novell.com |
| Portugal | Ana Perez | +353 1 605 8132 | AnPerez@novell.com |
| Italy | Alessandra Vidili | +353 1 606 8169 | Avidili@novell.com |
| Netherlands | Katarzyna Ulbrych | +353 1 605 8259 | kulbrych@novell.com |
| Germany | Christoph Rahaus | 00353 1 6058223 | Crahaus@novell.com |
| Austria | Christine Karsten | +353 1 605 8033 | CKarsten@novell.com |
| United Kingdom | Jana Bading | +353 1 605 8164 | jbading@novell.com |
| Ireland | Jana Bading | +353 1 605 8164 | jbading@novell.com |
| Nordics | Henrik Jacobsen | +353 1 605 8073 | HJacobsen@novell.com |
Royalty report process
The Royalty Report should be submitted to EMEA Contract Admin. Department.
Email: EMEA_Contract_Admin@novell.com
Fax: +353 1 605 8089
Report frequency
The Royalty Report must be submitted within 10 days from the last day of each calender month or quarter. The frequency of reporting will be stated in Section 9.1 of the ISV/IHV Contract.
Royalty report format
Exhibit C to the ISV/IHV Contract outlines the Royalty Report Format. Please see Attachment 1 for a copy of Royalty Report Format Exhibit C.
Details to be included:
- Partner Name, address and contact person details
- Reporting period
- Products(listed in Exhibit A to ISV/IHV agreement)
- Pricing(listed in Exhibit A to ISV/IHV agreement)
- Quantities
- End-user details
Royalty report process
- Partner submits Royalty Report to EMEA Contract Admin (ECA). ECA will validate the details provided by the partner to ensure it meets the contractual obligations. ie customer details, products, pricing, reporting period.
- ECA will offset the royalties due against any prepaid balance.
- Once ECA have approved, the Royalty Report will be forwarded to the relevant Customer Services Representative(CSR) in Sales Operations.
- CSR will process a Billing Only order for the royalties to be invoiced.
- If the royalties do not exceed a prepaid balance- partner will receive a zero value invoice and the remaining repaid balance will be carried forward to the next reporting period. - If the royalties are in excess of a prepaid balance, thepartner will be invoiced for the additional amount due. - Payment Terms of the invoice are outlined in Section 10 of the ISV/IHV contract.
Exhibit C: royalty report form
Download the Royalty Report Form (Requires Open Office).