Feeds

SCO admits: Linux jihad is destroying our business

Death or inglory

  • alert
  • submit to reddit

High performance access to file storage

By law, companies must provide apocalyptic forward-looking scenarios in their SEC filings. They need to show they've thought of everything, to fend off potential class action suits just in case the sky really does fall in.

But in a filing yesterday the SCO Group gave a strong hint that while it anticipates riches from IP licenses, its current business is falling apart. Deeply embedded in the risks portion of the filing is this statement:

"We are informed that participants in the Linux industry have attempted to influence participants in the markets in which we sell our products to reduce or eliminate the amount of our products and services that they purchase. They have been somewhat successful in those efforts and similar efforts and success will likely continue. There is also a risk that the assertion of our intellectual property rights will be negatively viewed by participants in our marketplace and we may lose support from such participants. Any of the foregoing could adversely affect our position in the marketplace and our results of operations. "

Which boils down to two admissions. SCO has already lost business from its loyal customer base. And it expects to lose more.

Much of SCO's channel remained loyal to the business through thick and thin: although it's hard to imagine now, the Michels' was a socially conscious company. SCO was a channel player and retained good relations with OEMs ranging from DG to IBM. SCO's customers in retail and distribution fended off the great Windows assault of the mid-90s and the ancient OpenServer terminals you could see in almost every retail store on a British high street were not going to be surrendered lightly. But patience has at last worn thin. Where Microsoft's slick marketing failed, SCO's own jihad against Linux has succeeded: in scouring its customer's loyalty.

Doug Michels was never quite comfortable with the idea of Linux, blasting "punk young kids" (from Norway), and Caldera's Ransom Love - who has now departed and disowned the inheritors' current strategy - was never completely comfortable with the GPL. But Ransom's strategy of working with the channel, trusting them enough to migrate to Linux at their own pace, certainly looks a wise strategy now. (Certainly wiser than we thought at the time.)

SCO has a conference call with showman lawyer David Boies later this morning, Pacific Time. Boies is working for his supper, and there's some interesting speculation at Groklaw as to whether the latest batch of equity financing matches the near-$9 million the SCO Group will have burned through in legal fees.

And the million dollar legal team have filed another motion blocking Red Hat from calling its bluff. We don't want to read too much into the fact that the usually very forthcoming SCO folks declined to answer our questions today, but pointed us to the conference call. ®

High performance access to file storage

More from The Register

next story
Windows 8.1, which you probably haven't upgraded to yet, ALREADY OBSOLETE
Pre-Update versions of new Windows version will no longer support patches
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
OpenSSL Heartbleed: Bloody nose for open-source bleeding hearts
Bloke behind the cockup says not enough people are helping crucial crypto project
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Windows XP still has 27 per cent market share on its deathbed
Windows 7 making some gains on XP Death Day
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
US taxman blows Win XP deadline, must now spend millions on custom support
Gov't IT likened to 'a Model T with a lot of things on top of it'
Microsoft TIER SMEAR changes app prices whether devs ask or not
Some go up, some go down, Redmond goes silent
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.