Feeds

SCO channel chill bodes ill for Caldera

Penguinistas flee the coop

  • alert
  • submit to reddit

Intelligent flash storage arrays

The day after Caldera cut 17 per cent of its staff (including OS/2 and Java vet Nick Petreley), we found ourselves musing how urgently the Utah-based Linux distro needed the stability of SCO's revenue. Caldera is expected to complete the merger next week.

But, um what stability ... and what revenue? Those questions are posed by one SCO reseller in a chastising message to us. His tale, if typical, doesn't bode well for the merged Unix company:-

We're a SCO reseller ... or rather we're a SCO reseller who're not selling any SCO product any more because customers and prospects are universally saying "can we run your application under Linux" and when we say we can they go the Linux route. Even long standing SCO users are switching to Linux when they upgrade. Given the difference in price this is hardly surprising.

Talking to other SCO resellers I've found that this is happening to them too. Given this I'd expect to see Caldera's revenue from SCO UnixWare and Open Server to be plummeting at the moment.

It's also clear to me from conversions and communications we've had with SCO/Caldera that Caldera believe that by buying SCO they're positioning themselves at the "enterprise" end of the Linux market by grabbing into SCO's strong IA32 Unix customer base but our customers are saying "who? Why aren't you selling us RedHat?". So we do.

The reason, he adds, is that SCO OpenServer binaries now run so well on Linux that customers consider the $1000+ license fee an easy saving, and do without.

Scaldera urgently needs a predictable regular revenue stream because it's one of the few companies left standing that's burning through cash as if it was still the height of the dot.com bubble economy. Caldera's revenues were static at $1m in the last quarter, but the company ran up $9m in costs.

If our correspondent is remotely correct, Caldera needs to do some urgent, high profile rebranding of its Linux distros. Assuming that SCO's reseller channel would simply become Caldera resellers always was one of the shakier points of the merger. Caldera could discover that in a business as competitive as PC Unix, keeping its new VARs happy is as thankless as herding cats. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Preview redux: Microsoft ships new Windows 10 build with 7,000 changes
Latest bleeding-edge bits borrow Action Center from Windows Phone
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
Google+ goes TITSUP. But WHO knew? How long? Anyone ... Hello ...
Wobbly Gmail, Contacts, Calendar on the other hand ...
Redmond top man Satya Nadella: 'Microsoft LOVES Linux'
Open-source 'love' fairly runneth over at cloud event
Chrome 38's new HTML tag support makes fatties FIT and SKINNIER
First browser to protect networks' bandwith using official spec
Admins! Never mind POODLE, there're NEW OpenSSL bugs to splat
Four new patches for open-source crypto libraries
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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.