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Project Monterey - What SCO Knew and When It Knew It -- Or Coulda, Shoulda
Tuesday, May 04 2004 @ 11:50 PM EDT

SCO, in answering IBM's 2nd Amended Counterclaims, makes a statement that it had no idea that IBM was investing in Linux during the work on Project Monterey. Is that true?

After looking at media coverage of Project Monterey at the time, I think you'll agree that unless SCO read nothing but the funny papers in the years 1999 and 2000, they had to have known. They certainly could have. Let me show you what I found. But first, let's establish the time frame we are talking about and what SCO is alleging.

Here is what IBM wrote in number 42 of its 2nd Amended Counterclaims:

"42. IBM is a participant in the open-source movement and has made a substantial investment in Linux business efforts over the last 5 years. IBM participates in a broad range of Linux projects that are important to the company and contribute to the open-source community."

Here is SCO's answer to 42, where they make the charge that they were blindsided:

"42. Admits the allegations of Paragraph 42, but alleges that SCO was unaware of IBM's Linux-related investment prior to its formal announcements thereof, and further alleges that IBM secretly and improperly failed to disclose to SCO such Linux-related investments and its intentions with respect to Linux before and during Project Monterey."

Unaware of IBM's Linux-related activities before and during Project Monterey? Let's see if that is true. The Project Monterey agreement was entered into between the Santa Cruz Operation and IBM in October of 1998. According to SCO's Second Amended Complaint, paragraphs 53-57, IBM told them they considered Project Monterey "dead" in approximately May of 2001. According to their complaint, they list IBM announcements about Linux dated August and December of 2000. So that is our time frame.

Remembering that SCO of today was then Caldera, not oldSCO (Santa Cruz), was Caldera unaware of IBM's investment in Linux? Was oldSCO? Was it a secret plan of IBM's they only learned about after they had already bought the Unix business from oldSCO? Let's take a look at the public record.

From this article about Project Monterey, dated August 9, 1999, note that it says that IBM had investments and an interest in Linux even then:

"IBM also has investments--I mean an interest--in Linux, and it could potentially integrate parts of the highly scalable Extreme architecture into Monterey."

If Caldera didn't know, why didn't they? Here's an article about Project Monterey and IBM in March of 2000:

"IBM Corp. is taking advantage of the rift between Intel Corp. and Sun Microsystems Inc. to promote Monterey, the company's first Unix for Intel offering.

"IBM's Monterey, an enhanced version of IBM AIX for Intel's IA-64 platform, will go head-to-head against Solaris for Intel IA-64 in the Unix marketplace. Monterey is IBM's first stab at the Wintel space since its ill-fated OS/2 operating system. . . .

"IBM has also announced strong support for Linux and Windows 2000 on Intel's forthcoming platform."

Could that be any clearer? Any less of a secret? In June of 2000, the same thing was mentioned in this report, namely that IBM had plans for Linux:

"IBM is working with developers to make applications portable between 64bit Linux and its next-generation 64bit Unix operating system, codenamed Monterey/64.

"Miles Barel, IBM's program director for AIX and Monterey, said this week that Big Blue is developing interfaces that would provide binary and programming compatibility so that applications developed for 64bit Linux could work on the Monterey platform.

"IBM formed Project Monterey in October 1998 to make its AIX Unix variant source code compatible with the Santa Cruz Operation's Unixware offering before porting it to Intel's IA-64 processor. Big Blue expects to ship Monterey/64 at the same time as Intel releases its 64bit Itanium processor, which is due this autumn. . . .

"Analysts said the commitment would allow IBM to take advantage of the work of Linux developers and put it still further ahead of its competitors in embracing the open source operating system."[emphasis added]

If Caldera had any objections, or Santa Cruz, would that not have been the time to say so? Didn't they and everyone else know about Linux and IBM's plans for it? Could IBM have been more open?

For that matter, did Caldera know in time to avoid buying from oldSCO, if that was going to be a factor? According to Caldera's SEC filing in August of 2000, it was on August 1, 2000 that it made the first of the two-part acquisition from Santa Cruz Operation. SCO's current history page, in which it pretends it is oldSCO back in 1979, but Caldera in 2001, tells us the date they say they, Caldera, completed the acquisition of SCO's Server Software and Professional Services Divisions:

"2001 - Caldera Systems completes the acquisition of SCO's Server Software and Professional Services Divisions, becoming Caldera International (Caldera) and providing the world's largest Linux/UNIX channel"

Yet, as we have seen, as far back as August of 1999, IBM's investment and interest in Linux had already been reported in the media. Did SCO fail to do their due diligence?

By the way, on the subject of what killed Project Monterey, note in this article, dated August 9, 1999, referenced above, it says that the market was shifting, and Linux was already killing SCO's Unix -- and Sun -- then:

"Let's look at the facts. SCO's UnixWare had some low-end success, and it had a good story to tell in the midrange Intel market. But, for all practical purposes, it had been going absolutely nowhere because it was being unequivocally killed by Linux. . . .

"But I wonder how committed companies would be to start upgrading their data centers just for the chance to run the 64-bit Monterey. I mean, 64-bit computing has not been proven yet, except in the Nintendo 64 market. And if companies wanted 64-bit computing, why wouldn't they opt for Solaris, which is on a faster path to high-end Unix? But Sun has problems with Solaris. The company, in fact, is desperate, given its latest actions. It's being attacked in the low-end Intel market by Linux, and it's being threatened at the high end by Monterey, which, of course, isn't ready. But you have to plan ahead.

"How desperate is Sun? You might remember that Sun is now giving away Solaris to universities, whereas it used to charge students an arm and a leg for it. Sun is also toying with the idea of releasing a Linux emulator, which will make Linux apps run on Solaris boxes. In this case, 'toying' is the key word, as the technology, called lxrun, was initially developed by SCO to run Quake. And now, what's this? Sun is begging IBM to preload Solaris on its Netfinity servers. Add it all up, and Sun's Intel presence is all but dead, which is very serious indeed.

"Big question: Who's going to consider Monterey, anyway?"

It certainly does seem like every effort to blend Unix and Linux ends in doom. Companies keep trying to get folks to want it, but they don't. "Who's going to consider Monterey, anyway?" the article asks. Is it not possible that this is what killed Project Monterey? A fatal lack of interest in the market? In May of 2000, this article highlighted on LinuxToday [original] said that Monterey was already doomed, in part because of Linux, so that nobody wanted Monterey:

"IT-Director: Monterey on borrowed time
May 22, 2000, 13 :37 UTC

"Every now and then, industry observers have to stick their necks out and this is one of those occasions. No ifs, no buts - Project Monterey may be nearing its release date, but it will find that it has only a short life span. Why, oh why, I hear you ask, is the flagship OS to be left by the wayside? The answer is simple - Windows 2000 and Linux will make Monterey an irrelevance.

"...Linux has moved from academia to the mainstream, winning mindshare as the commodity operating system that Monterey had designs on becoming. The strength of Linux's position is in the fact that it has been ported not only to IA-64 but also to just about every platform under the sun. . . .

"Ultimately it will be the customer that decides, and it is here that we are already seeing the last nails in Monterey's coffin. According to the Register on Friday last, Fujitsu Siemens already has around 60 customers who are trialling 4-way Itanium servers based on the IA-64 architecture. And what about the operating systems the prospective customers are choosing? 'Most users want Windows 2000, others ask for Linux but hardly anyone is interested in Monterey,' said a source from Fujitsu Siemens."

Whatever killed Project Monterey, I think you would have to agree that anyone could have known about IBM's interests and investments in Linux at least as far back as 1999, during the time Project Monterey was being developed.


A reader, Tom Zak, has just sent me this press release from 1999, in which Caldera seems to know about IBM's interest and involvement with Linux, to say the least:


"OpenLinux Tour, Dedicated Support Resources, and Education Agreement Will Help Resellers Capitalize on High-Growth Linux Market

"Orem, UT June 22, 1999 Caldera Systems, Inc. and IBM today announced a joint development, marketing and support relationship to assist resellers in delivering IBMs and Calderas solutions on the OpenLinux operating system. Through this relationship, Caldera is providing IBM with dedicated Linux development and technical support resources and education materials. The two companies are also participating in joint sales and marketing activities to recruit systems integrators, value-added resellers (VARs) and independent software vendors (ISVs) to sell IBMs and Caldera's OpenLinux solutions.

"'Caldera was the first Linux company to create a Linux VAR channel, and we are committed to continuing to offer our resellers robust, business-critical OpenLinux solutions,' said Ransom Love, CEO of Caldera Systems, Inc. 'The proven scalability and reliability of IBM's hardware and software makes them an obvious choice for our partners. That choice is confirmed by the high level of interest we're seeing from resellers in IBM and OpenLinux solutions.'

"Caldera Systems is providing dedicated developers to help IBM port and test select software to OpenLinux, including IBM's DB2* Universal Database; the industry's first Web-ready relational database management system; Lotus Domino**, the leading messaging and collaboration server; WebSphere*, which represents the industry's most complete range of Web application server environments, and IBM SecureWay*, providing integrated directory, connectivity and security between users and applications for e-business in a networked world.

"Caldera will also be providing 24x7 technical support on OpenLinux to assist IBM in supporting its Linux customers.

"IBM Learning Services will collaborate with Caldera in the Linux training arena. Caldera will provide a wide range of Linux educational courses designed to prepare customers, business partners and other attendees to pass Linux Professional Institute (LPI) certification. Caldera's multi-track educational offerings are targeted at four groups: VARs and resellers, software developers, system administrators, and end users.

"'IBM's proven software on the Linux operating system offers our e-business customers one more choice in selecting the platform that best meets their needs,' said Dick Sullivan, vice president of Integrated Solutions Marketing, IBM Software Group. 'As a recognized leader in Linux for Business solutions, Caldera has the experience and market presence to give business partners the ability to capitalize on opportunities in this exciting new space.'

"IBM is sponsoring Caldera's 'OpenLinux Tour' partner recruitment campaign as part of the two companies' joint sales and marketing activities. The 15-city campaign is targeted at system integrators, VARs, and ISVs who want to capitalize on the hardware, software and add-on services opportunities in the rapidly growing Linux marketplace. For more information, see To learn more about IBM's Linux initiatives, visit

"'I was very impressed by the OpenLinux tour presentation well-organized with new ideas for Linux business solutions. It's about time that businesses get new technologies and better alternatives to present to their clients,' commented Jose Veras, President, Saver Technology.

"In addition, Caldera Systems is working with IBM Netfinity servers to bring Linux to industry-standard servers with the latest technologies and record-breaking performance. Caldera OpenLinux has been certified by KeyLabs, an independent certification organization, for use on the IBM Netfinity* 3000 and 7000 servers, with additional models in the testing process.

"IBM Netfinity servers offer a reliable foundation for leading Linux-based computing, providing outstanding performance, reliability, manageability and security for core business applications, and have the power and superior scalability to handle the most extensive scientific or technical computing requirements.

"About Caldera Systems

"Caldera Systems, Inc. is the Linux for Business technology leader in designing, developing and marketing Linux-based business solutions including OpenLinux, NetWare for Linux, Linux technical training, certification and support. Caldera Systems can be reached at 888-GO-Linux (888-465-4689) or via E-mail at linux at To become an OpenLinux reseller, please visit To access the Caldera Systems Web site, please bookmark Caldera Systems, Inc. is a Canopy Group holding under the Ray Noorda/Canopy Group Investment Company. Ray Noorda is the former CEO of Novell, Inc. (NASDAQ:NOVL)"

There is a bit more, but you get the idea. So, what do you think, gang? Was Caldera unaware of IBM's interest in Linux in 1999?

Is the Internet not wonderful? And how do you like that detail about Caldera Systems, Inc. being "a Canopy Group holding under the Ray Noorda/Canopy Group Investment Company" in 1999? I liked the Websphere touch, too. My, my. This story never gets dull, does it? Everyone is pitching in, so do check the comments for more, many more, links to even more evidence.

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