Novell and China Standard Software Company have decided to build on their partnership formed earlier this year and cooperate in developing Linux-based server and desktop offerings aimed at the Chinese market.

Under the new agreement announced Tuesday, Novell and CS2C will jointly test and deliver to Chinese users new server and desktop products based on the open source Linux operating systems. In addition to offering technical support, the two companies intend to promote open source technology and software development in China.

In April, Novell and CS2C signed a broad agreement to collaborate in the area of Linux operating system software. Tuesday's announcement adds meat to that agreement.

CS2C was founded in 2003 with investments from Chinasoft Network Technology, China Technology and Eastern China Computer Institution.

Earlier this month, Novell took the top spot in China's Linux server operating system market, with the largest share of revenue and unit shipments during the first half of this year, according to a study by market researcher IDC.

The study, which was commissioned by Novell, showed the U.S. software company capturing nearly a third of market revenue, or 32.9%, compared to 29.5% for Turbolinux and 24.0 for Red Flag Software, China's home-grown Linux provider.

As for unit shipments, Novell captured 30% of China's market for Linux server operating systems, slightly ahead of Turbolinux with 29.9% and Red Flag finishing with 27.2%, according to the study.

The IDG News Service is a Network World affiliate.