Both SCO and Caldera face serious challenges in the marketplace. The two
companies have compatible business models (a heavy emphasis on sales through
the integrator and VAR channels), so a merger of strengths makes sense.
Caldera, a relatively young company, hopes to take advantage of the large
network of VARS, integrators and software developers SCO has built to advance
its Linux distribution, while SCO sees them as likely to defect to Linux
Caldera is backed by Ray Noorda, founder of Novell, and has the financial savy to pull off a deal like this. Caldera's backers are flush with cash from Microsoft, which just bought off the DR-DOS dirty business practices suit to the tune of somewhere between 350 and 500 million dollars.
SCO faces the fact that its Unix is not well positioned to compete effectively against either Windows 2000 Server or against Linux.
How does this affect your business?This move will greatly strengthen Linux in the face of Windows 2000, making it easier for business to escape the smothering blanket of Microsoft dependence, and save a lot of money in doing so.
It will be easier for a business to select a higher quality, more powerful Linux distribution than Red Hat. By bringing SCO's advanced Unix features to Linux, Caldera will bypass the need for a great deal of duplicate development. It will greatly accelerate the availability of truly business quality applications running on Linux, and improve the level of support businesses can expect if they adopt Linux.
Much of the SCO product will eventually be GPL'd and appear in other Linux distributions, but, in the mean time, it will strengthen Caldera as the best choice for Linux in business.
How does this affect Automation Access?We currently work with both SCO and Caldera. This looks like a solid win for us, creating a simpler product structure and improving our market position. We will now be backed by a far stronger Linux organization.
- Automation Access
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