Mono does provide Novell with a differentiator from other Linux distributions, O'Grady said.

"Novell can do that because of the deal they have with Microsoft," he added. "Until it's viewed as patent-safe on all Linux platforms, not just Novell, it's going to be a tough sell."

Meanwhile, Novell is also hoping to rev up the application market around its OS, with SUSE Linux Enterprise JeOS (just enough operating system), which ISVs can use along with a set of called Suse Studio, to package their products as virtual appliances.

Novell has a "supportability algorithm" for vetting appliances; those that pass muster will receive technical support from Novell.

"You can really start to think of this as mass customization of Linux," said Novell spokesman Justin Steinman, vice president of solution and product marketing.