Re: CTXS Competitor- SCO(Tarentella) Warns
"As some may know, Network World has been a strong supporter of CTXS for many years. Recently I noticed, there appears to be less written about CTXS and more about SCO."
Thread- SCO is a competitor to CTXS. Fortunately CTXS has current zero exposure to UNIX as this warning by SCO claims the problem has been. It's ironic because I recall the analysts were beating up CTXS because of their former lack of a product for UNIX.
And with this warning, SCO also released news it's going to restructure and go after the ASP market. Sounds like they are a little late to me. CTXS will probably look at it the same way as their other competitors. More companies to stimulate interest in thin-client computing for the ASP market.
I believe SCO is the company that reverse engineered RDP, therefore there is some claim they owe no royalties? Something like that. I'm fuzzy on the details but it's all upstream.
This is starting to remind me of the dominance Cisco has in the large customer/enterprise networking market. Cisco has the most expensive products, best products, and best execution. And they drive competitors out of their space. A parallel can be drawn between CTXS and it's competitors in the thin client computing space.
Of course this is not to say CTXS will hold their dominance in the future. Or to even say thin client computing will keep up it's rapid growth rate. Both key to CTXS future success. -MikeM(From Florida)
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SCO Makes Preliminary Fiscal 2000 Second Quarter Announcement
New Corporate Structure to Address Significant Market Changes
SANTA CRUZ, Calif., March 21 -- SCO (Nasdaq: SCOC) today announced it expects that sales for the second quarter ended March 31, 2000 will be significantly lower than the company originally anticipated and below analysts' estimates, due to continuing Y2K-related delays and other effects.
``I am disappointed that the market for our UNIX server software has not recovered as quickly as we expected following the Y2K period,' said Doug Michels, president and CEO of SCO. ``However, I am encouraged by recent feedback from major channel partners that reseller activity has begun to return to previous levels.
``We have also seen a significant increase in interest in our web-based Tarantella family of products following the release of Tarantella Enterprise II in January and Tarantella Express in late February. This combined with the exciting advances being made in the Open Source movement are the key reasons why we are taking immediate and substantial action to increase our investments in two major product areas, Linux and Tarantella, and reduce expenses in our traditional UNIX application server business.'
To accelerate these changes, SCO is restructuring into three separate divisions -- Server Division, Tarantella Division, and Professional Services Division. All three divisional entities will be accountable for their own profitability and have the flexibility to forge alliances, pursue investments and drive product strategies.
SCO will provide further information about its second fiscal quarter and the remainder of fiscal 2000 when the company reports its quarterly results on or before April 25, 2000. Due to the lower server revenues and the one-time costs of restructuring into divisions, the company expects to report significant losses for the fiscal second quarter. The company believes that revenues and earnings for the fiscal year will be significantly lower than original estimates of $250 million in revenue and $0.60 earnings per share. Further information about the company's structural and product initiatives is available in a separate company press release issued today. |
