Transcript Announcements at SCO Forum 2005

Darl McBride, President and CEO
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Keynote Overview
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Company Updates
Financial and Legal Updates
Long Live UNIX
Announcements at SCO Forum 2005
What’s coming in 2005 – 2006 and beyond
Company Updates
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…
Public Figure
Woman
Sports Figure
Company
Consumer Brand
Consumer Electronics
Retail Chain
See: www.google.com/intl/en/press/zeitgeist.html
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Financial and Legal Updates
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
Long Live UNIX
Key reasons to choose OpenServer 6 over Linux
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%
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mi2g Studies
Technology Risk
Management Firm
SCO Has a Customer-Driven Roadmap
SCO =
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Customer driven roadmap
Public
Planned
Linux =
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Loosely organized set of volunteers
and vendors
Disparate directions
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
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Linux = Built in Obsolescence
SCO Allows You to Focus
Do you want to be an operating system vendor?
SCO UNIX = Ready to Run
Linux = High Maintenance
[Click HERE to Run Video]
SCO 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”
SCO =
– 1Novell/SCO Asset purchase agreement –
9/19/1995 (Check)
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
Linux = Forking
Yogi Berra
SCO is committed to a policy of converging and unifying its
code 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.
SCO = 99.999%
Linux = ?
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#1 most lonely guy
#2nd most lonely guy
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
Organizational Updates
Tim Negris
Senior VP of Corporate Marketing
Sandy Gupta
CTO 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 performance
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Announcements at SCO Forum 2005
• 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
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What’s Coming in 2005 – 2006 and Beyond
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
Leading Worldwide
Operating Platform
Millions of
Installed Servers
Worldwide
Unequaled in
Stability and
Reliability
Runs many of the
world’s largest
businesses
More than 3,000 UNIX Licensees
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
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
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