From IBD article in early January...don't think I've seen it posted:
Software Company A Key Force In Battle of Operating Systems by Mike Angell, IBD.
As the ongoing war between Microsoft and rival operating systems heats up, companies are staking out various camps. One increasingly important ally is Santa Cruz Operation Inc. The Santa Cruz, Calif.-based software firm makes Unix operating systems. The increasing use of Unix as an alternative to Microsofts' windows NT is making Santa Cruz a valued partner for companies like IBM Corp., Compaq Computer Corp., and Unisys Corp.
"If you look at the world three years ago, it was generally believed that Microsoft was going to take over the operating systems space," said Mike Orr, Santa Cruz's worldwide marketing. "Because of Linux, people see a space for alternatives. All the people who are learning about Linux are by default learning about Unix.
This growing popularity, Orr says, comes from the reliability of both systems. If they crash, they don't need to be rebooted, saving valuable time.
More importantly, Linux and Unix are open-source programs. This means any progammer familiar with either system can debug it without having to ship it out for fixes. It's making more tech professionals build around Unix-based computer networks.
Santa Cruz's two major products are Unix operaing systems OpenServer and UnixWare 7, which together account for 80% of revenue. The older of the two OpenServer, is targeted for small to midsize businesses. It runs on Intel-based computer systems, which means it can run on off-the-shelf hardware, making it inexpensive to deploy.
The newer system, UnixWare 7, is designed for larger computer networks with up to 32 processors. It also runs on Intel-based computer rather than more specialized systems.
"The key advantage to people is the low cost of using Intel platforms compared with other standard like IBM and Hewlett-Packard," Orr said. "we are attractive because we offer the sort of pricing you'd expect from Microsoft, but with all the characteristics of Unix.
Santa Cruz supplies operating systems to 40% of the entire Unix server market, says market researcher International Data Corp. Of all the Inte-based servers, Santa Cruz has an 80% share of the market.
Unix operating systems are used mostly in back-office systems. Lucent Technologies Inc. uses UnixWare in voice-response and voice-mail systems. Large retailers, such as Taco Bell and grocer Kroger Co., link their many outlets through UnixWare. Many pharmacies across the U.S. track inventory and sales through computer applications build around Santa Cruz's operating systems. "Whenever you visit retailer, the chances are quite high that you're going to be using a Santa Cruz system or the person serving you is going to be using a Santa Cruz systems" Orr said.
Over the past year, UnixWare sales have been growing faster than Open-Server sales. Part of that is due to increasing numbers of technology firms incorporating all or part of Unix-Ware into their own Unix-based systems. Santa Cruz joined with IBM and Intel on Project Monterey, which is an initiative to sell low-cost business computer networks using Intels's new 64-bit Itanium microchip. The partners will develop a Unix operating system that incorporates Santa Cruz's Unix-Ware and IBM's AIX Unix system. Monetary computers will range from entry-level to large enterprise servers.
"Monterey, is designed to take the best of AIX, the best of Unix Ware and deploy it on the 64-bit Itanium processor," Orr said. "As people start changing over to 64-bit systems, Monterey is intended to be the dominant, leading Unix system".
Another recent deal involved incorporating database software maker Oracle Corp., 8i with UnixWare on Compaq computers. With Oracle's 31% share of the wordwide market, the move gave Santa Cruz increased entry with Web site developers.
"The primary route to those customers is through those (companies)," Orr said. "They tell us what they're looking for. As we go into new markets, the important factor is signing up those (companies) that have vertical or horizontal applications that they want to deploy".
But Santa Cruz is marketing its latest software application, Tarantella. It allows a program to be used over the Internet without any special changes being made to the application.
Citrix Systems Inc., Metaframe product allows Internet access, but just for Windows applications. Tarantella works on Unix, mainframe applications and IBM's AS/400 systems.
The newest version to be released in January will also work with Windows NT application. Orr said Tarantella's $4,995 license fee would make it competitive with Metaframe.
"We priced that to be significantly less expensive than Citrix, so we're trying to attract both new users and existing Citrix users to try out and convert to Tarantella", Orr said. |
