The anticipated marriage of Unix vendor Santa Cruz Operations and Linux software house Caldera has received both praise and criticism from analysts and the media.
The optimists argue that Caldera purchasing a Unix vendor - instead of the expected converse - adds weight to the Unix platform by admitting that Linux cannot compete for the high-end accounts without a hand from its distant cousin.
Detractors note that two companies with a weak brand do not make a strong brand, and product and staff overlap are also expected to cause problems among the ranks of the newly formed Caldera Incorporated.
Detractors note that two companies with a weak brand do not make a strong brand.
Jason Norwood-Young, technology editor, ITWeb
Although as rare and coveted as a lifejacket on the Titanic, a few international journalists have reported being privy to some extracts of the International Data Corporation`s IDCFlash, entitled "Caldera acquires parts of SCO - does it make sense?"
I have gone one better than the rest and have managed to get the report in my grubby paws. IDC purportedly feels a "strong sense of disquiet", and expects the divisions of SCO acquired by Caldera - namely the operating system and professional services wing - to suffer from a slow decline in popularity.
"It`s not all clear that joining together two companies which each have had difficulties creating well-known brands will result in a well-known company. If customers aren`t aware of a product, they won`t consider it. If they don`t consider it, they certainly won`t purchase it," the report states.
The job losses in both companies have already started, before the deal has even passed through the usual US federal approval rigmarole. SCO is cutting 19% of its workforce, and one of its top management in the operating division is rumoured to have quit yesterday. Caldera has also started retrenchments, but on a smaller scale.
Staff overlap is only one headache - the companies have both been working furiously on 64-bit kernels for the Intel Itanium. Having had the fortune of sitting next to Caldera`s head Itanium developer on the way to IDF, it seems that SCO`s is the twin that will be sacrificed so that the other may live.
According to IDC`s report on the deal, SCO representatives contend that the project will continue and Monterey is essential to the success of the strategy, since it provides a more scalable 64-bit platform than 64-bit Linux for the next several years.
Another expected spanner in the UnixWare/Caldera cogs is the open source nature of Linux. SCO country manager Mark Knight did note that there is a possibility of UnixWare going the open source route. However, it is predicted by some detractors that Compaq, Veritas and others who really own the divisions of SCO that Caldera acquired may not be keen to see their investment given away.
IDC`s report states: "One interesting aspect of this initiative is for Caldera to offer source code to as many of these products as possible. For some of the products covered by the acquisition, licensing terms prohibit making the source code publicly available. Monterey is one of those products.
"Just what products will see their source code released into the public sector remains to be seen," continues the report.
Personal view
Having covered the sceptic`s perspective, I would like to state that I personally feel quite positive for the new company. Both have excelled in excellent technology, and have good names in the marketplace for making products that are innovative and functional. SCO`s UnixWare sales have been slipping lately, which it blamed on the Y2K problem, but also no doubt resulted from increased competition in its marketplace (Linux included).
The injection of a good front-end platform could be just the boost UnixWare needs to get its value proposition and competitive advantage up again. It admits to having ignored the low-end market, concentrating on the data centre, and now has the technology to offer solutions instead of product.
The Linux community can also benefit from the deal. It has had a hard time gaining market acceptance due to its perceived image by some as a hobbyists` operating system. For those who have not taken Linux seriously before, hopefully this will be a wake-up call to at least investigate the possibilities of the platform.
IDC notes that NonStop Cluster software, currently available on UnixWare, could be ported to Linux, "allowing Caldera to present an availability and scalability story that will be difficult for other Linux suppliers to counter". IDC believes that the NonStop Cluster software will very likely be made available for Monterey when that operating environment becomes available.
Finally, the end-user can expect a broader product range than either company could hope to offer individually, and a roadmap and local support for a Linux platform to boot. Customers not using Caldera or SCO will also benefit from increased competition in the marketplace, which raises the technology bar for the other vendors and inevitably drops prices and increases value-add offerings.
No doubt tough times lie ahead for the new player, but its success would be a marvellous boon for the industry.
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