Unix code in Linux?

SCO`s charge that the Linux kernel contains copies of Unix code should be greeted unenthusiastically in the Linux community, argues Newsfactor, adding that it casts doubt on the legitimacy of the open source operating system.

The SCO Group`s announcement sprang from an analysis performed in conjunction with its billion-dollar lawsuit against IBM, which alleges that the technology giant misappropriated code from Unix and incorporated it into Linux. SCO owns the copyright to Unix.

"If this lawsuit drags on... then it`s ... going to affect what happens with Linux," said Aberdeen Group analyst Bill Claybrook. "People who are interested in building their IT infrastructures around Linux are going to wonder exactly what`s going to happen."

An agreement with SCO Group protects Linux seller SuSE from legal action stemming from SCO`s accusation that Unix software was copied into Linux, SuSE is reported as saying by CNet.

"We have a joint development agreement with them, which includes appropriate cross-licensing arrangements," said SuSE spokesman Joe Eckert.

The Indian software heyday is hitting some snags, reports Reuters.

The service quotes analysts that highlight a number of trends affecting the Indian market. One is that the development game has shifted to volumes, discounts and more spending to boost sales as software services risk becoming just another commodity.

While software maintenance will always be there, that`s where the greatest threat of commoditisation is coming from.

Another factor is that top-end work such as R&D still earns a premium, but a slowing global economy has hit demand even there. Finally, competition has depressed profit margins: average hourly rates for software services have fallen to $20 to $25 in Bangalore from $25 to $30 two years ago.

Reuters predicts a shake-out in the sector, which has 3 000 firms but only five companies with annual revenue of more than $200 million. Two years ago, the industry had less than 1 000 firms.