from Moore's Lore by Dana Blankenhorn
April 04, 2005
Will SCO Case Make The Finish Line?

It's beginning to look like the SCO-IBM case won't make it to the finish line, an end to discovery and summary judgement.

SCO's sponsors are blowing up. Literally.

Maureen O'Gara (left), whose name is like fingers rubbing a balloon to most in the open source community, and is regularly accused by them of being an SCO shill, reported last month that both Ray Noorda's daughter and another executive with Canopy Group, SCO's largest owner, committed suicide.

More telling, perhaps, was her reference to SCO itself, a company she has regularly defended on teleconferences. She called it "the infamous SCO Group."

When your shark-jumper jumps ship, who's left?

The real news from last month is that Canopy's position in SCO has transferred to former Canopy CEO Ralph Yarro, who chairs the SCO board. When the former VC leaves his firm and becomes your CEO, you've got no net below you and (most likely) no new money coming in the door.

SCO could use new money, because when it finally delivered its financial results for fiscal 2004 (on April Fool's Day no less) it had a net loss of $23.3 million on revenue of $42.8 million, against profits of $5.4 million and $79.2 million in revenue. Why? Because sales of licenses to Linux users totaled just $809,000, down from $25.8 million in 2003.

How can this be bad news for open source?

Simple. If SCO fails to make it to the end of discovery, the judge in the case can't set a precedent that will keep others from trying the same con.