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Darl McBride, President and CEO
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Keynote Overview
Company Updates Financial and Legal Updates Long Live UNIX Announcements at SCO Forum 2005 What’s coming in 2005 – 2006 and
beyond
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Company Updates
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Award Winning Global Reseller Program
SCO’s reseller program was recently awarded the coveted five star ranking for the third consecutive year by VARBusiness
Magazine for excellence in its reseller programs
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SCO Has Delivered
Two major upgrades to our UNIX operating systems
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2004 Most Searched For…
See: www.google.com/intl/en/press/zeitgeist.html
Retail Chain
Consumer BrandConsumer
Electronics
Sports Figure
Public Figure
Woman
Company
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Financial and Legal Updates
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Company Financials
The UNIX business is operating profitably and generating cash
SCO’s management team anticipates core UNIX business profitability continuing throughout FY 2005
SCO and its legal team have capped legal expenses
$2 million to be paid each quarter for 2 more quarters After December 2005, quarterly legal payments no longer
incurred by SCO
During the last financial call (Q2 2005) SCO reported Five consecutive quarters of UNIX profitability Added $800,000 to the company’s cash position
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Committed to continued profitability and cash generation
in SCO’s UNIX business
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Legal Update
SCO vs. IBM Trial date set for February 2007 Discovery continuing in the case Legal team preparing for deposition of IBM’s
Chairman and CEO, Sam Palmisano We look forward to having our claims heard
before a jury in the near future
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Legal Update
SCO vs. Novell Novell has twice filed motions to have our case
against them dismissed The court has twice denied Novell’s motions Novell has filed counterclaims as expected which
we will address with a filing in the near future We’re now awaiting the court’s scheduling order for
the case and look forward to having our claims heard before a jury in the near future
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Legal Update
SCO vs. AutoZone
SCO submitted a report to the court in May 2005 summarizing its discovery findings
The discovery findings found copying of thousands of COFF files and programs designed to run on SCO OpenServer machines across AutoZone’s stores
SCO’s legal team is considering its next steps in the case
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SCO’s Focus and Direction
Innovation
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Long Live UNIXKey reasons to choose OpenServer 6 over
Linux
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OpenServer 6 Costs Less
SCO = SCO OpenServer 6: Priced from
$599 to $1399.Customers pay once for the product and run it for as long as they like.
Linux = The Linux “bait and switch”
Linux distributors charge customers from $349 to $2,499 every single year.
Over five years, that same customer pays from $1,745 to $12,495.
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SCO Has a Superior Kernel
SCO =OpenServer 6 includes:
UNIX System V Release 5 (SVR5) kernel
The result of more than 25 years
of high-end development work Proven track record of stability
and reliability.
Linux = Linux is still young from an
operating system perspective. Less stable More vulnerable
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OpenServer Has Better Security
SCO = SCO UNIX platforms had the
lowest number of vulnerabilities of any operating system they had studied. SCO OpenServer 6 has all the latest security protocols and encryption systems.
Linux = Linux had the greatest
number of security vulnerabilities with 65.64%
mi2g StudiesTechnology Risk
Management Firm
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SCO Has a Customer-Driven Roadmap
SCO = Customer driven roadmap Public Planned
Linux = Loosely organized set of
volunteers and vendors Disparate directions
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OpenServer 6 is Backward Compatible
SCO OpenServer 6 customers get a stable operating system with full compatibility for applications back to the earliest versions of
SCO OpenServer and Xenix.
SCO = Backward Compatibility Linux = Built in Obsolescence
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SCO Allows You to Focus
SCO UNIX = Ready to Run Linux = High Maintenance[Click HERE to Run Video]
Do you want to be an operating system vendor?
SCO UNIX allows you to focus on your core competencySCO UNIX allows you to focus on your core competency
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SCO Owns and Warrantees its Products
“SCO owns all right, title and interest in the UNIX
operating system1”
– 1Novell/SCO Asset purchase agreement – 9/19/1995 (Check)
SCO =
Linux =
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SCO Owns and Warrantees its Products
IP Matters
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SCO is Unifying its Code Base
SCO = Consistency
Yogi Berra
Linux = Forking
SCO is committed to a policy of converging and unifying itscode base as is evident with the release of OpenServer 6
SCO is committed to a policy of converging and unifying itscode base as is evident with the release of OpenServer 6
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SCO UNIX: Legendary Reliability
Customers value and trust a vendor whose products provide reliability and stability year after year.
A good operating system is like a strong building foundation, you may not think about it everyday, but you’re glad it’s there. #1 most lonely guy #2nd most lonely guySCO = 99.999%Linux = ?
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SCO Has an Award-Winning Support Team
SCO: Backs you up - kernel to finished
product A support team that knows the
product inside and out. Decades of experience Available around the world and
around the clock. A support team that has access to
the very development engineers who created the product.
Linux: A “volunteer fire department”
support model?
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Announcements at SCO Forum 2005
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Organizational Updates
Tim NegrisSenior VP of Corporate Marketing
Sandy GuptaCTO and VP of Engineering
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Announcements at SCO Forum 2005
A new strategic partnership with Cymphonix
• Joint sales, marketing, training and development agreement to provide Network Composer to SCO resellers & direct accts
• Cymphonix to port Network Composer to SCO OpenServer 6
• Cymphonix currently working with Terian and SYNNEX through SCO to provide direct solutions to resellers and their customers
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OpenServer 6 Customer Success Story
BIS Computer Systems, Inc.
Upgrades to OpenServer 6: Added 100 additional users to each server Previous month-end closing process — 7 hours Today — 1 hour You’ll hear more from BIS later today
Seeing a tenfold increase in performanceSeeing a tenfold increase in performance
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• Maintenance Pack 1 brings multi-core processing to SCO OpenServer 6
• New SCO OpenServer 6 education curriculum now available
• New SCO OpenServer 6 customer support packs now available
Announcements at SCO Forum 2005
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What’s Coming in 2005 – 2006 and Beyond
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Fusion
The development of SCO’s next generation
64-bit UNIX operating system
• Melds the development paths of SCO OpenServer and UnixWare into one 64-bit UNIX OS
• Incorporates new UNIX SVR6 technology for server virtualization and virtual mobility
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The Foundation of SCO
More than 3,000 UNIX Licensees
Leading Worldwide Operating Platform
Unequaled in Stability and
Reliability
Runs many of the world’s
largest businesses
Millions of Installed Servers
Worldwide
UNIX protected by strong confidentiality clauses in contract
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Look for SCO to Expand its Reach Into New Markets
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Look for SCO to Expand its Reach Into New Markets
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Look for SCO to Expand its Reach Into New Markets
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Look for SCO to Expand its Reach Into New Markets
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Look for SCO to Expand its Reach Into New Markets
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In Summary
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In Summary
Legal expenses are under control and we have the cash to see a conclusion to our current litigation
Our claims continue being heard in a court of law
The company’s UNIX business is operating profitably
SCO is investing in research and development for the future
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In Summary
SCO OpenServer 6 is seeing good results and we’re hearing great feedback from customers, the media, analysts, and others
We’re delivering on our promises with new versions of SCO OpenServer and UnixWare
We look forward to seeing success both in the marketplace and in the courtroom