Unix/Linux vendor Caldera restructuring to cut costs

Unix and Linux software vendor Caldera International Inc. is laying off 51 workers and streamlining its operations as it fights to stay alive in a tough market.

In an announcement yesterday, Orem, Utah-based Caldera said it will consolidate some of its facilities in Orem and Santa Cruz, California, while whittling down its product lines and cutting other costs. The layoffs will affect 8 percent of the company's workers.

"We have evaluated all areas of our business that are necessary to meet customer needs and financial objectives," said Ransom Love, Caldera's president and CEO, in a statement. "We believe that this restructuring will help our company operate more efficiently in accordance with future revenue expectations and current worldwide economic conditions."

Last year, Caldera gambled and bought the UnixWare server and services divisions from the former Santa Cruz Operation (SCO) in California, in an attempt to expand its offerings to customers and its income (see story). The idea was to merge the scalability of Unix with the flexibility of the open-source Linux operating system.

Dan Kusnetzky, an operating systems analyst at International Data Corp. in Framingham, Massachusetts, said Caldera's restructuring announcement "was sort of expected because there are obvious redundancies" in marketing and other areas since the SCO acquisitions.

When Caldera approached SCO, Caldera really only wanted to buy the services division of the company, but was forced to buy the rest of SCO as well, including its UnixWare server operating system, he said. "They were saddled with a lot of things they really couldn't use," he said.

By making the SCO deal, Caldera officials apparently thought they would make a bigger name for themselves. But that could only have happened, Kusnetzky said, if they had a big name to begin with.

"SCO had never succeeded in making itself known outside its friends," and Caldera has a similar problem, he said. "It just made a larger unknown company."

Stacey Quandt, an analyst at Giga Information Group Inc. in Cambridge, Massachusetts, agreed that the restructuring isn't a surprise.

"They're looking to survive in tougher economic times," especially in light of the added pressures being placed on Unix by developing Linux operating systems, she said. "The market is going to consolidate, and Caldera is attempting to survive in a much more difficult market."

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Todd R. Weiss

Computerworld

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?