At last, details of what will be happening, from the press release:

REDMOND, Wash., and WALTHAM, Mass.—12 Feb 2007—Microsoft Corp. and Novell today unveiled more details about their joint technical roadmap and the benefits customers can expect from the collaboration. Microsoft and Novell are engaged in joint development on four areas of technology that address significant problems faced by enterprise customers today: virtualization, Web services for managing physical and virtual servers, directory and identity interoperability, and document format compatibility.

Full Press Release

MS Press Release (added)