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Darl McBride, President and CEO


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Title: Darl McBride, President and CEO

Darl McBride, President and CEO
Keynote Overview
  • Company Updates
  • Financial and Legal Updates
  • Long Live UNIX
  • Announcements at SCO Forum 2005
  • Whats coming in 2005 2006 and beyond

Company Updates
Award Winning Global Reseller Program
  • SCOs reseller program was recently awarded the
    coveted five star ranking for the third
    consecutive year by VARBusiness Magazine for
    excellence in its reseller programs

SCO Has Delivered
  • Two major upgrades to our UNIX operating systems

2004 Most Searched For
Public Figure
Sports Figure
Consumer Brand
Consumer Electronics
Retail Chain
See www.google.com/intl/en/press/zeitgeist.html
Financial and Legal Updates
Company Financials
  • The UNIX business is operating profitably and
    generating cash
  • SCOs management team anticipates core UNIX
    business profitability continuing throughout FY
  • SCO and its legal team have capped legal expenses
  • 2 million to be paid each quarter for 2 more
  • After December 2005, quarterly legal payments no
    longer incurred by SCO
  • During the last financial call (Q2 2005) SCO
  • Five consecutive quarters of UNIX profitability
  • Added 800,000 to the companys cash position

  • Committed to continued profitability and cash
    generation in SCOs UNIX business

Legal Update
  • SCO vs. IBM
  • Trial date set for February 2007
  • Discovery continuing in the case
  • Legal team preparing for deposition of IBMs
    Chairman and CEO, Sam Palmisano
  • We look forward to having our claims heard before
    a jury in the near future

Legal Update
  • SCO vs. Novell
  • Novell has twice filed motions to have our case
    against them dismissed
  • The court has twice denied Novells motions
  • Novell has filed counterclaims as expected which
    we will address with a filing in the near future
  • Were now awaiting the courts scheduling order
    for the case and look forward to having our
    claims heard before a jury in the near future

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 AutoZones stores
  • SCOs legal team is considering its next steps in
    the case

SCOs 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.

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
  • Less stable
  • More vulnerable

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 Studies
  • Technology Risk Management Firm

SCO Has a Customer-Driven Roadmap
  • SCO
  • Customer driven roadmap
  • Public
  • Planned
  • Linux
  • 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
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
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 Owns and Warrantees its Products
IP Matters
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
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 youre glad its there.

SCO 99.999 Linux ?
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
  • 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?

Announcements at SCO Forum 2005
Organizational Updates
  • Tim Negris
  • Senior VP of Corporate Marketing
  • Sandy Gupta
  • CTO and VP of Engineering

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

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
  • Youll hear more from BIS later today

Seeing a tenfold increase in performance
Announcements at SCO Forum 2005
  • Maintenance Pack 1 brings multi-core processing
    to SCO OpenServer 6
  • New SCO OpenServer 6 education curriculum now
  • New SCO OpenServer 6 customer support packs now

Whats Coming in 2005 2006 and Beyond
The development of SCOs 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

The Foundation of SCO
Unequaled in Stability and Reliability
Leading Worldwide Operating Platform
Millions of Installed Servers Worldwide
Runs many of the worlds largest businesses
More than 3,000 UNIX Licensees
UNIX protected by strong confidentiality clauses
in contract
Look for SCO to Expand its Reach Into New Markets
Look for SCO to Expand its Reach Into New Markets
Look for SCO to Expand its Reach Into New Markets
Look for SCO to Expand its Reach Into New Markets
Look for SCO to Expand its Reach Into New Markets
In Summary
In Summary
  • Legal expenses are under control and we have the
    cash to see a conclusion to our current
  • Our claims continue being heard in a court of law
  • The companys UNIX business is operating
  • SCO is investing in research and development for
    the future

In Summary
  • SCO OpenServer 6 is seeing good results and were
    hearing great feedback from customers, the media,
    analysts, and others
  • Were 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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