Feeds

SCO admits: Linux jihad is destroying our business

Death or inglory

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
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
Do Moan! MONSTER 6-day EMAIL OUTAGE hits Domain Monster
Customers freaked out by frightful service
Sign off my IT project or I’ll PHONE your MUM
Honestly, it’s a piece of piss
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.
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.
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.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.