Investor Blasts SCO's Strategy On Linux - InformationWeek
IoT
IoT
Software // Enterprise Applications
News
4/23/2004
05:15 PM
50%
50%
RELATED EVENTS
The Real Impact of a Data Security Breach
Aug 02, 2017
In this webcast, experts discuss the real losses associated with a breach, both in the data center ...Read More>>

Investor Blasts SCO's Strategy On Linux

BayStar Capital plans to take back $20 million if SCO doesn't makes changes

SCO Group's public aggression toward Linux users and vendors could cost the company a large investment from BayStar Capital. The venture-capital firm says that SCO needs to make changes, which include altering its communications strategy regarding Linux, if it wants to keep the firm's $20 million investment.

darl

CEO McBride may have to rein SCO in.
BayStar wants SCO to take a more "disciplined approach" in communicating with the public about Linux, a BayStar spokesman says. While the spokesman wouldn't go into detail, SCO's combative stance is unquestionable. President and CEO Darl McBride has publicly declared SCO's plan to systematically sue Linux users who don't pay it licensee fees, and SCO last month filed lawsuits against DaimlerChrysler Corp. and AutoZone Inc., a car-parts supplier.

BayStar also wants SCO to strengthen its management team with people skilled in the areas of intellectual-property management, litigation, and the overall running of a public company. And SCO needs to focus on its year-old lawsuit against IBM, which stands to offer the greatest windfall to shareholders, BayStar says. "We believe that when we invested, there was a strong and valuable asset in the intellectual-property case" against IBM, says the spokesman. "We still believe that SCO has the chance to prevail."

BayStar's threat appeared in a recent Securities and Exchange Commission filing by SCO. A spokesman for SCO says the company is "ready and willing" to work with BayStar to resolve its issues.

Evan Leibovitch, president of the Linux Professional Institute, says any change in SCO's communications strategy won't make a big difference to the Linux community, which has largely ignored SCO's threats of lawsuits. Says Leibovitch: "The Linux community always thought SCO was blowing smoke."

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
[Interop ITX 2017] State Of DevOps Report
[Interop ITX 2017] State Of DevOps Report
The DevOps movement brings application development and infrastructure operations together to increase efficiency and deploy applications more quickly. But embracing DevOps means making significant cultural, organizational, and technological changes. This research report will examine how and why IT organizations are adopting DevOps methodologies, the effects on their staff and processes, and the tools they are utilizing for the best results.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll