SAN FRANCISCO – In order for Linux to prosper it needs to develop a broader base of applications, avoid fragmentation, address data center needs and expand its market, according to Novell CEO Ron Hovsepian.

In addition, Hovsepian said Novell would support GPLv3 in future versions of SUSE Linux and would honor coupons for those versions of the operating system as part of Novell’s partnership with Microsoft.

The Novell leader made the remarks during his keynote address to open the third day of the LinuxWorld conference.

Hovsepian started out by declaring that Linux is mainstream.

“Make no mistake about that. We all see that, we are all experiencing that,” he said. He thanked the Linux kernel team, the community and the Free Software Foundation for its work on the GPL, including the new Version 3.

Hovsepian then said Novell would be shipping GPLv3 components in upcoming packages of SUSE Linux Enterprise as they are released. Currently there are no components in SUSE Linux licensed under the GPLv3.

In response to a question from the audience, Hovsepian said Novell will redeem Microsoft-issued coupons for software that is licensed under GPLv3.

“Customers will redeem the coupons and we will deliver the latest version of our distribution. It is that straightforward,” he said.

As part of an interoperability and cross-licensing patent deal signed in November between the two vendors, Microsoft promised to distribute 70,000 coupons for SUSE Linux Enterprise Server maintenance and support. But on July 5, Microsoft issued a statement saying it had no legal obligations under GPLv3, which forbids the type of patent deal Microsoft and Novell signed.

Hovsepian then moved on, saying the Linux community needs to look forward because there is work to do if people believe Linux is going to replace every Unix server and challenge Microsoft on the desktop.

He said the Linux community needs to progress in unison to obtain a dominant position in the market, and needs to focus on three areas: the ecosystem, the data center and expanding its market reach.

“The No. 1 thing that we need on Linux is applications,” he said.

Hovsepian said applications were fragmented in the Unix market and that was a mistake.

“If you look at Windows, their application availability is far and away their biggest advantage,” he said. “ISVs go to Microsoft and they know there is one platform.” He says Linux is distribution by distribution.