Open Source

New future for SCO?

On Feb. 14, the SCO Group announced that a private investment firm agreed to put up $100 million to take SCO out of Chapter 11 bankruptcy.

On Feb. 14, the SCO Group announced that a private investment firm agreed to put up $100 million to take SCO out of Chapter 11 bankruptcy.

From Information Week:

Stephen Norris Capital Partners (SCNP) and its partners from the Middle East, which SCO did not identify, have agreed to provide up to $100 million to reorganize SCO and take it private. As part of the plan, SNCP would take control of SCO.

Because of the investment, SCO is poised to emerge from bankruptcy court in the coming year. Jeff Hunsaker, president and chief operating officer of SCO, said the investment is in the best long-term interest of SCO, its subsidiaries, customers, shareholders, creditors, and employees. Read the full statement Read the full statement.

According to SCO, the business plan moving forward includes launching new product lines and seeing the company through its legal issues, including a Utah federal court order to compensate Novell for collecting royalties on UNIX after it was discovered that Novell and not SCO holds the copyright on the OS. It is estimated that SCO could owe Novell as much as $25 million. A trial set to begin on April 29 will determine the amount of compensation SCO will be required to pay. Read more.

The SCO woes have been in and out of headlines since it attempted to sue IBM for allegedly using open source Linux, with the claim that UNIX code was in Linux. When the Utah court determined that SCO was not the copyright holder, the point became moot.

Does your organization use SCO? Do the legal issues that it faces deter you from using its products?

12 comments
Jaqui
Jaqui

SCO became a laughingstock with their spurious lawsuits while tying to get enough in settlements to get out of bankruptcy. They are in chapter 11 because they had lost the market share. they must have lost it for a reason, like bad products, on top of poor upper management.

royhayward
royhayward

Hey, I used to love Caldera, and we used to use Open Server. But as they went crazy and stopped bing a software company, and decided to become a law firm, we moved away from them. When I look back I am saddened that SCO managed to ruin Caldera. But the nostalgia of these memories do not overcome the pariah making actions that SCO undertook over the past few years. If SCO is going to stay in the Software industry, they are going to have to unveil some killer apps and features to get any notice from me. I just can't see people getting excited to adopt a SCO platform after we were all cheering when they were defeated. (Then again there is Microsoft, but I don't think that model will work for SCO.)

Tig2
Tig2

Does your company use SCO? Have you had a greater sense of risk with SCO considering their legal issues? Or does this announcement mean little or nothing?

seanferd
seanferd

Replace all the nuts who have been running the company, along with any in-house legal team. I wonder if they could hire back anyone from better days of SCO or Caldera. Maybe they could (re)acquire DR-DOS. :D edit for Thetans in my formatting

Tig2
Tig2

That they are going back to software products. Hard one to call. The company that bought them is partially based in the Middle East. Not that there is anything wrong with that, more that they may try to concentrate on that market more aggressively. The Utah decision in April should be interesting. I will see if I can follow this up.

ron_lombardi
ron_lombardi

After all, they did have Tarantella. If you never worked with this product, you missed out. SCO's weak spot has always been their MARKETING, even before the legal woes. Let's not forget Microsoft was originally joined at the hip with SCO back in the mid 80's with Xenix. Had SCO learned a little something from Microsoft in the Marketing Arena, they surely would not be where they are now. I can remember SCO UNIX running on PC's that were far from todays technical stability, and doing so for days without requiring a reboot or locking up. This while running 30 - 40 users on it, and running accounting applications written in DBL (then, DEC's Cobol) with ISAM files. Those were the days! lol SCO has a faithful following, but not at the expense of being politically correct in the corporate structure. So, they will have many watching and hoping they do get over the hump, and get the company out of the BLACK HOLE it's currently in. And that they go through a complete restructure from the top down with anyone that was/is involved with the legal snafus that got them heading downward to begin with, and get some badly needed marketing assistance. They have some serious talent in that company, they have to. They have been in business for close to 30 yrs. even if they are in the spot they currently are. How many companies have died in this industry within the first 5 yrs.? Take a long look and be honest. They have done darn well to stay alive as a company, and do so in this industry for this long. Yeah, IF IF IF they have truly learned anything about the BAD BUSINESS MOVES they have made, and the WEAK MARKETING they have always had, they have a chance in my (not always so) HUMBLE OPINION.

seanferd
seanferd

Not that I would deny copyright to any of these companies (aside from SCO), but how can anyone have a legitimate claim on enforcing ownership when AT&T never secured the source code in the first place. It was in the wild way back. Machines were sold with the source on them, and AT&T said they didn't care. People who worked with it didn't have to sign agreements, or destroy/erase/return it at the end of their projects. I'm not saying this was the case in every instance, but it happened more than once, and once is all it takes. Anyone have thoughts or clarification on this?

Dumphrey
Dumphrey

Labeled SCO OpenServer in a back closet last year, so we DID use it at one point, years before my time. I find this anouncement a little suprising. After the public humiliation SCO has received, forced into bankrupcy, and facing an already (pre-litigation) falling market share, I am very suprised SCO was considered a worthwhile investment. Possibly theydo own some IP someone wants, or maybe it will become a tax write off... Most interesting is taking it off public trading and turning it private. Looks to me like the new investors are planing to make a mint in the restructure. I have no idea how they plan to do this though.

DanLM
DanLM

That scares the living crap out of me. Dan

Dumphrey
Dumphrey

to my paranoid fantasy that Dan Quayle is trying to wrest control of America's Shadow Government from the Ghost of Johnny Carson... Or that something nefarious is going on, and this new company saw a chance to use an obscure piece of SCO IP to ream 12X the cash from some other guy...

The Scummy One
The Scummy One

yesterday, and I do not understand why any company would pay so much more than that being asked -- for anything

seanferd
seanferd

Maybe oil was discovered below some real estate owned by SCO? ?:|

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