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Darl McBride, President and CEO

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Title: Darl McBride, President and CEO


1
Darl McBride, President and CEO
2
Keynote Overview
  • Company Updates
  • Financial and Legal Updates
  • Long Live UNIX
  • Announcements at SCO Forum 2005
  • Whats coming in 2005 2006 and beyond

3
Company Updates
4
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

5
SCO Has Delivered
  • Two major upgrades to our UNIX operating systems

6
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
7
Financial and Legal Updates
8
Company Financials
  • The UNIX business is operating profitably and
    generating cash
  • SCOs 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 companys cash position

9
  • Committed to continued profitability and cash
    generation in SCOs UNIX business

10
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

11
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

12
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

13
SCOs Focus and Direction
  • Innovation

14
Long Live UNIX Key reasons to choose OpenServer 6
over Linux
15
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.

16
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

17
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

18
SCO Has a Customer-Driven Roadmap
  • SCO
  • Customer driven roadmap
  • Public
  • Planned
  • Linux
  • Loosely organized set of volunteers and vendors
  • Disparate directions

19
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
20
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
21
SCO Owns and Warrantees its Products
SCO
  • SCO owns all right, title and interest in the
    UNIX operating system1
  • 1Novell/SCO Asset purchase agreement
    9/19/1995 (Check)

Linux
22
SCO Owns and Warrantees its Products
IP Matters
23
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
24
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
25
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?

26
Announcements at SCO Forum 2005
27
Organizational Updates
  • Tim Negris
  • Senior VP of Corporate Marketing
  • Sandy Gupta
  • CTO and VP of Engineering

28
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

29
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
30
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

31
Whats Coming in 2005 2006 and Beyond
32
Fusion
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

33
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
34
Look for SCO to Expand its Reach Into New Markets
35
Look for SCO to Expand its Reach Into New Markets
36
Look for SCO to Expand its Reach Into New Markets
37
Look for SCO to Expand its Reach Into New Markets
38
Look for SCO to Expand its Reach Into New Markets
39
In Summary
40
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 companys UNIX business is operating
    profitably
  • SCO is investing in research and development for
    the future

41
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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