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  The SCO Group Files Chapter 11 to Protect Assets as It Addresses Potential Financial and Legal Challenges
Time: 17:56 EST/22:56 GMT | News Source: *Linked Within Post* | Posted By: Andre Da Costa

The SCO Group, Inc. ("SCO") (Nasdaq: SCOX), a leading provider of UNIX(R) software technology and mobile services, today announced that it filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. SCO's subsidiary, SCO Operations, Inc., has also filed a petition for reorganization. The Board of Directors of The SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders, and employees. The SCO Group intends to maintain all normal business operations throughout the bankruptcy proceedings. Subject to court approval, SCO and its subsidiaries will use the cash flow from their consolidated operations to meet their capital needs during the reorganization process.

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#1 By 20505 ( at 9/14/2007 7:31:04 PM
I suspect the play is for a Silicon Valley company that purchases defunct companies to buy SCO and try to enforce any residual copy writes and patents they may hold.

#2 By 37047 ( at 9/14/2007 7:39:37 PM
Given that the judge basically ruled that all the valuable IP properties (UNIX SysV patents and copyrights) still belong to Novell, I suspect that SCOG could be purchased for a pretty cheap price. Whatever may be left I suspect will go cheaply.

#3 By 23275 ( at 9/14/2007 9:13:16 PM
The bummer part of all this mess is that support for a great *nix may be at risk.

we use SCO on two control systems for the opthalmic manufacturing plant behind one of our customers. Two lower cost x86 servers have run without flaw for years and aside from a dead tape drive in one, they have never been turned off.

Say what one will.... SCO made a very solid Unix OS.

#4 By 15406 ( at 9/15/2007 12:30:39 PM
#3: There are lots of other UNIX or Linux flavours that can easily & happily take SCO's place. sco made its bed and now it gets to lie in it. What I'm wondering is, where are all the people like Dan Lyons, Rob Enderle and our very own crackpot Parkkker who foretold Linux's doom based on SCO's completely bogus claims of UNIX IP in Linux? I'll put the kettle on while we wait for the retractions.

#5 By 37047 ( at 9/15/2007 9:39:08 PM
#3: If needed, there are other alternatives. Sun Solaris is a rock solid UNIX OS, with a long history of solid performance on SPARC architecture, and a decent OS on Intel as well. SCO Unix is a good OS, but unfortunately, Darl McBride and other managers decided to focus more on the IP they believed they owned, and turned SCOG into a litigation based company, rather than continuing to focus on the OS and other technologies. That lead to their downfall. Red Hat Linux, Novell Suse Linux, Solaris, FreeBSD, OpenBSD, and other options all exist for solid UNIX and UNIX based OS needs.

#6 By 23275 ( at 9/15/2007 10:31:42 PM
#5, Yes, we know and we run a few distro's for customers whos devs a) are used to a *nix only env. and b) the business owners do not wish to fund a commercial Unices - leading to point c) where, on low cost x86 hardware, SCO Unix was very tough to beat. Still, it is unfortunate that, as you point out, SCOG focused on IP rather than what they had - that at least is what it appears to be, BUT... those that have used/deployed SCO in the past couple of years can state that IP was not the only focus - there was still a great deal of work being done and with a lot of merit. The support was/probably still is, awesome and their devs KNEW the OS in very intimate ways.

In sharp contrast were RH support contracts that our customers had to have opposite their business deals. RH support was useless, in my opinion, and we did a great deal of work that should have been supported by RH. Despite all the hopeful press, the support from the Linuces distributors just can't compare to SCO's. SUN... well... one had better have very deep pockets and a lot of them to ever reach devs that have anything close to the intimate knowledge that SCO's dev's/support maintained. In fact, one of the best experiences we ever had with mandatory support [that mandated by the deal] came from SCO. Opposite RH we ended up learning a great deal more about that Linuces than we ever wanted to know and I can say from my own experience and the costs I covered that RH AS/ES were/are in no way of the same class as SCO. It isn't even close. Fortunately the close friends that went down that path have moved onto other things and very recently we were able to take that load off and dump it. Never have I seen people burn through so much cash chasing themselves into a very tight corner populated with great dev's - just too few of them to capitalize on any success. It just doesn't scale well. SCO on the other hand, allowed us to do easily, that which was appropriate for it - controlling the machines and grinders that made the lenses. It cost nearly nothing and made the customer a ton. I could go on and on about it, but few would benefit from it - just don't assume that what you read in the press about there being parity between the commercial Unices and the Linuces - it isn't accurate.

#7 By 2960 ( at 9/16/2007 10:58:01 AM
There should be a Jeopardy question that says:

"Technology for 500 Alex"


"What is... a list of the most hated entities in Technology"

Correct. Choose please...


#8 By 254367 ( at 12/3/2009 2:11:33 AM

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