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SCO Bankrupt

© September 2007 Anthony Lawrence


No great surprise:

Dear SCO Customers and Partners,
This afternoon we took the extraordinary step of filing for Chapter 11 protection in U.S. Bankruptcy Court to protect assets for our creditors and stockholders and to ensure the continuation of our normal business operations. This decision was not taken without extensive consultation with the board of directors, and many outside experts and legal counsel.

SCO intends to maintain business as usual throughout the Chapter 11 proceedings. Subject to court approval, SCO will use the cash flow from its operations to meet its capital needs throughout the reorganization process.

Other companies such as Delta Airlines, Texaco, Dow Corning, K-Mart, United Airlines, Toys R' Us, Macy's Department Stores and others have emerged from Chapter 11 protection after restructuring themselves for success. We intend to do the same.

We value our relationship with you and want to provide the assurance that you can continue to order product, and receive exemplary service and support from us during this restructuring period.

We invite you to consult with your SCO representative if you have any questions or concerns.

Darl McBride
President & CEO
The SCO Group

Last I looked, SCOX stock was well under a dollar. If you think they can crawl out of this mess, that could be a great investment. Personally, I think they won't make it.

My wife just asked "What does this mean for your business?" Well, I've been doing less and less SCO for years now and most of that has been helping people migrate to Linux.. so if anything, this will just accellerate those conversions.. so for me, it's probably good news - certainly not bad news. However, I do know that there are consultants (some of whom may be reading this) who haven't yet moved toward Linux.. well, if the handwriting was on the wall years ago, it's a giant billboard now, isn't it?

SCO Group Files Chapter 11

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Sat Sep 15 14:09:05 2007: 3126   BigDumbDinosaur

No big surprise here! If SCO had spent the last four years developing OpenServer instead pursuing their ridiculous "Linux stole our code" litigation they'd probably be doing okay right now. If SCO had any smarts (evidently they don't anymore) they would have shown McBride the door and focused on updating OpenServer. Instead, they frittered away all their time and money on lawyers and now have nothing to show for it. Their tangling with IBM was especially ill-advised, an act akin to Chinese sailors on a junk attacking the battleship USS Missouri with cap pistols.

We (BCS Technology) are down to a tiny handful of clients still running on OpenServer. Conversion of one of them to Linux will be underway in about two weeks. Another has ordered a new server for delivery in October -- it will be Linux-powered, of course. We have one client who is "stuck" on OpenServer due to middleware issues. They are well aware that the SCO ship is sinking and that a change will eventually be required. And to think at one time that we had OpenServer boxes running all over the place. <Sigh>

Sat Sep 15 16:37:11 2007: 3127   drag

Probably what they should've done was continue with the Caldera business and worked on helping people migrate from OpenServer to Linux. Doesn't make much sense to me to be working on two OSes, especially when you get one basicly for free.

I figure they would of been in a good position that way. Sure they couldn't charge nearly as much for Linux as Unix, but a lot of people are making lots of money helping people migrate from Unix to Linux. They certainly would be a much better position then they are now. Maybe improving the ability of Linux to execute OpenServer binaries and providing compatability libraries and such. That sort of thing.

They also could done what Sun has done and openned up the code as much as possible.

Both those actions would of probably helped them retain the market share. But, as they say, that paticular ship has sailed a long long time ago.

Sun Nov 23 23:45:06 2008: 4802   anonymous

Their stock was about 13 cents recently..

Tue May 26 17:48:58 2009: 6410   TonyLawrence

Today I rec'd the notice of conversion to Chapter 7 proceedings.

Tue May 26 18:53:49 2009: 6411   MikeHostetler

I googled around for the Chapter 7 and just got hits of what I already knew -- namely, Novell and IBM is asking the court to force SCO into Chap 7, since they aren't doing anything with their Chap 11. A Chapter 7 will force their creditors to take over.

If this is true, it's an anti-climatic end to a long story of bad decisions, shady business deals, and ignoring your customers.

Tue May 26 19:40:45 2009: 6413   TonyLawrence

Yes, it's true. I just got the official notice today. The motion was on May 11, the letter says objections must be made by June 5th.

Bye bye SCO. See (link)

It is time to convert (way past time!) any existing SCO system to Linux.

Wed Jun 17 10:21:37 2009: 6507   TonyLawrence

Oh no - the beast lives! : (link)


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