“We always have to look for a combined company where one plus one is more than two”

Why
did you choose to sell off SCO’s operating systems division?
We saw that the industry was about to start in another major direction with
Open Source and Linux forces coming to bear on it. We saw a big opportunity for
operating systems. But in order to exploit that opportunity, we needed to create
a company that was positioned properly, that had the capitalization necessary
and that had a differentiation from the other competitors.

SCO could have been that company. But it had some weaknesses. It didn’t
have enough capital, was perceived as an old company and not a new one, and wasn’t
yet credible in the Linux and Open Source space.

On the other hand, SCO had some incredible key assets–it had technology,
employees, worldwide infrastructure, a top notch customer base, open systems,
credibility and experience.

It had almost all the ingredients, but not quite. We looked at what we could
do to create something that really has a chance to be number one. Or be number
one against Microsoft. And we looked around and we felt that we could combine
with one of the Linux companies that was well funded, had a new image and had
credibility in the Open Source Linux space. Combine that with all the assets in
our hands, and we will probably end up with something bigger and better than
either company was before. We always have to look for a combined company where
one plus one is more than two. We found in Caldera the exact compliment to the
SCO pieces.

Now that the operating systems are with another company, what new options
open up for Tarantella? Specifically, would there be a Win2K version soon?
There would be a Windows 2000 version of Tarantella. It was going to be
there anyway.

It would be easier for example to have a good relationship with Microsoft as
Tarantella than it would be as SCO. It would be easier to have a relationship
with Sun.

Having Tarantella as a separate company allows different alliances. It may be
easier to raise the initial capital we need, because people will be investing in
Tarantella and not in both Tarantella and servers. I see a lot of new
opportunities for Tarantella.

Would the new company remain a one-product company, or would you have more
products?
Tarantella is not a one-product company now. Under the Tarantella brand we
have three different products. We have Tarantella Express, Tarantella Enterprise
II and Tarantella ASP, which are all aimed at different market segments and have
different features and price points. The company also has the Vision 2000
products.

What is the differentiator between Citrix and Tarantella?
The universe of Citrix and that of Tarantella overlap, but they are not the
same. Citrix is positioned really to be multi-user NT. Tarantella can be used to
Web-enable any app. We specialize in heterogeneous environments. They specialize
in homogeneous NT environments. We do have a product that is better, and is
priced more aggressively.

Before this transaction happened, there was talk about SCO’s own version
of Linux. What happened to that?
If you had looked at the plan we never announced (laughs), you would have
seen a pretty detailed plan on how we would add value to Linux to make it very
attractive to the markets we service. Technologies we would add, features we
would add…. Most of the elements of that strategy will be done to Caldera Open
source Linux.

In the last two years, if you had a chance to do things differently, was
there anything you would have done differently?
Anyone can be perfect in hindsight. But, I don’t think we understood last
year, how much effect Y2K would have and how much effect it would have on this
year. If we had known that we would have spent less and saved more money than
last year. Another thing, we would have taken a more aggressive posture on Open
Source.

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