Feeds

Scaldera born in flames

Old Economy stalwart needs New Economy credit

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

The Unix business has never been known for the simplicity of its business alliances, and in that tradition one of the most complicated deals of all was concluded this week. Finally.

The SEC has at last approved the Santa Cruz Operation's merger with Caldera, which was originally announced last August, with the combined outfit trading under the Caldera International banner. SEC approved the S-4 filing on Monday, and a meeting of SCO shareholders is expected to see the deal completed on May 4.

The deal originally saw the Tarantella spin-off keep intellectual property rights to SCO's venerable OpenServer line, while Caldera had exclusive rights to sell it, guaranteeing Tarantella a revenue stream. After much wrangling, a much clearer arrangement with Caldera simply acquiring OpenServer outright, and rejigging its payments to Tarantella.

So the new Scaldera, as we must stop calling it, presents something of a curate's egg. It combines the Unix on Intel leader, with its strong and loyal channel, together with one of the oldest Linux distros. But will the merged outfit be indulged with New Economy generosity from its investors? That's in pretty short supply these days. Caldera lost $9m on revenues of fairly static revenues of $1m last quarter - an impressive burn rate. And SCO's Unix flavours have been hit particularly hard by the business slowdown: OpenServer is effectively in maintenance mode, and UnixWare is still regarded as one for the future, despite some big enterprise wins. SCO shed 20 per cent of its staff to even the budget late last year.

On the other hand, SCO's sever business brings in $24 million per quarter, and even after payments to Tarantella, that can only be positive for Scaldera's bottom line. And there isn't anyone better placed to ease the legion of SCO Users into the Linux future, and UnixWare's technology (particularly its Tandem-derived clustering) should turn rival distros green with envy.

Caldera's stock rose 14 percent yesterday in a falling market, although at $1.75 it bumps along at the bottom end of its trading range. ®

Beginner's guide to SSL certificates

More from The Register

next story
ONE MILLION people already running Windows 10
A third of them are doing it in VMs, but early feedback focuses on frippery
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
Sway: Microsoft's new Office app doesn't have an Undo function
Content aggregation, meet the workplace ... oh
Sign off my IT project or I’ll PHONE your MUM
Honestly, it’s a piece of piss
Do Moan! MONSTER 6-day EMAIL OUTAGE hits Domain Monster
Customers freaked out by frightful service
Return of the Jedi – Apache reclaims web server crown
.london, .hamburg and .公司 - that's .com in Chinese - storm the web server charts
NetWare sales revive in China thanks to that man Snowden
If it ain't Microsoft, it's in fashion behind the Great Firewall
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.