Feeds

IDC pricks SCO-Caldera bubble

Expresses 'strong sense of disquiet'

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

IDC has delivered a wary response to the acquisition by Caldera of the Santa Cruz Operation's UnixWare and its accompanying services division.

We've only got some excerpts of the IDCFlash, entitled Caldera Acquires Parts of SCO - Does it Make Sense?. But in a fine piece of reporting Linuxgram got hold of some more and, from these excerpts, IDC's answer to its own question seems to be: "Not a lot".

The authors profess to "a strong sense of disquiet" and predict a slow decline for UnixWare and the accompanying services division that Caldera acquired.

"It's not at all clear that joining together two companies which each have had difficulties creating well-known brands will result in a well known company. If customers aren't aware of a product, they won't consider it. If they don't consider it, they certainly won't purchase it."

This is pretty robust talk coming from the diplomatic analyst community. IDC points out that the crushing drop in UnixWare revenue over the past three quarters is the result of it being squeezed between competing Risc, open source Linux/BSD and Windows 2000 server competitors, rather than merely a post-Y2K malaise, as SCO argues. And that will more than an 'Under New Management' sticker to turn that around, it argues.

As we've pointed out, both Caldera's Linux and SCO's UnixWare are excellent products in their class - but both are suffering from a popularity deficit. And that marrying the two cultures, while satisfying Caldera's basic business requirement to produce open source software, is not going to be easy. Especially when the crown jewels Caldera acquired really belong to Compaq and Veritas, among others, and are essentially out of the open source game.

Such scepticism has been widely voiced in the public prints, and in our mailbag too, which expresses opinions ranging from the guardedly optimistic to the gloomy. You can read similar opinions almost everywhere, in fact, except ZDNet, which was gifted the scoop by Caldera and has been beside itself with excitement ever since: grumbling to us in private and in public about our lack of enthusiasm for the great project. Well folks, we just call it as we see it.

ZDNet columnist Evan Leibovitch took a pot at The Register to say we'd "misinterpreted" the financial analysts conference call. Evan, you'd make a far more convincing case if you'd supported that assertion with some evidence.

Meanwhile dear readers, the conference call in question is still online here, so you can judge for yourselves the accuracy of our account.

For the record we think Caldera CEO Ransom Love is taking a shrewd and practical approach to the problem. It's just that facing two ways at once (and recall that a very different emphasis was given to journalists in an early call that morning) could prove uncomfortable in the short-term, and unsustainable in the long-term. Something's got to give. ®

Related Stories

Double-spinning Caldera faces open source backlash
Caldera goes Unix with SCO acquisition
More red ink spatters SCO
Caldera, SCO deny takeover talks

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Captain Kirk sets phaser to SLAUGHTER after trying new Facebook app
William Shatner less-than-impressed by Zuck's celebrity-only app
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Chrome browser has been DRAINING PC batteries for YEARS
Google is only now fixing ancient, energy-sapping bug
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.