Rivals Ally in Linux Link

The Linux announcement is likely to put more pressure on Red Hat(RHAT Quote - Cramer on RHAT - Stock Picks), whose version of the free operating system has a commanding lead over Novell's version. Earlier this month, Oracle(ORCL Quote - Cramer on ORCL - Stock Picks) announced that it will be offering support for Red Hat Linux at a steep discount. That news knocked more than 25% off the value of Red Hat shares.

Red Hat closed Thursday off 2% to $16.10.

Separately, Microsoft said that it will release the business version of the long-anticipated update to its flagship operating system at an event at the Nasdaq Stock Market on Nov. 30. The company did not say when Vista, as the new version of Windows is called, will be ready for consumers, although it is expected in January.