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Who Really Contributed the High-End Tech to Project Monterey?
Sunday, May 30 2010 @ 10:00 AM EDT

Here's something interesting, a Santa Cruz 8K from October 26, 1998, which consists mostly of two press releases announcing the IBM-SCO joint partnership to do Project Monterey.

Guess who would be providing the bulk of the high-end enterprise capabilities and contributing them to UnixWare? Hint: Not SCO.

The idea of the project was a single Unix for the enterprise that Intel, IBM, SCO, Sequent, etc. would all unitedly push, for Intel's IA-64 platform and UnixWare would be beefed up for IA-32, and thus the end result would be one UNIX everyone could market for IA-32, IA-64 and Power platforms, after pooling resources. But it was IBM and Sequent, now part of IBM, who would do the heavy lifting with regard to the high-end beefing up.

Sequent, the press release says, would be contributing "its cc:NUMA technology and Intel architecture expertise." Here's what IBM would contribute:

As part of this initiative, a UNIX operating system will be developed for Intel's IA-64 using IBM's AIX operating system's enterprise capabilities complemented with technology from SCO's UnixWare and Sequent's PTX operating system. IBM will also transfer AIX technology to SCO's UnixWare and promote the offering in the UNIX on IA-32 market. The result will be a single UNIX operating system product line that runs on IA-32, IA-64 and IBM microprocessors, in computers that range from entry-level to large enterprise servers.

IBM will make significant investments to make this the leading UNIX operating system. IBM's investments will be directed at: porting IBM's middleware portfolio; operating system development to exploit Intel IA-32 and IA-64 and IBM's Power architecture; and investments in technical and marketing support for ISVs.

Intel is providing substantive technical and marketing support to make this operating system the leading UNIX for Intel platforms. IBM and Intel are creating a multi-million dollar ISV fund for this UNIX. This will help software companies deliver middleware tools and application programs for this UNIX environment.

In support of this initiative, IBM has forged alliances with SCO and Sequent, and has gained support from leading OEMs and ISVs.

SCO, the market share volume leader of UNIX operating systems, and IBM will collaborate to accelerate enhancements to SCO's UnixWare product for IA-32. Also, SCO and IBM will work together to co-develop and market this UNIX for the IA-64 based market....

In addition, IBM will contribute AIX technology to SCO's UnixWare to enhance its scalability and enterprise capability. This will complement the data-center engineering collaboration by SCO's OEM partners (Compaq, Data General, ICL and Unisys) to integrate extensive data-center capabilities into the UnixWare platform. IBM is also allocating engineering resources to ensure the availability of IBM and AIX middleware on the UnixWare platform.

So UnixWare would be nicely jazzed up for the enterprise. In fact, here's how Intel viewed the contributions from IBM and SCO respectively:
"The combination of IBM's enterprise expertise and software, SCO's shrink-wrap UNIX expertise and channels, Sequent's system expertise on IA, and the price- performance benefits of Intel architecture will make this a high-volume UNIX leader," said John Miner, vice president and general manager of Intel's enterprise server group.
SCO was clearly thrilled, and if you bother to read all of the Santa Cruz SEC filings for 1996-1998, as I've just finished doing for a separate article I'll publish later on what they actually purchased in 1995, you'll see why. The company was going downhill rather radically. Here's SCO's reaction to the new IBM partnership, in the second press release:
"SCO is delighted to be at the heart of this major announcement," said Doug Michels, SCO's CEO. "It's a great opportunity to take SCO's products to a new range of enterprise customers. Customers can now deploy major applications on both 32-bit and 64-bit technology, with the volume economics of a reliable, scaleable UNIX-on-Intel. We see this collaboration with IBM -- the company that invented enterprise computing -- and Intel, as a major benefit for our customers, OEM partners, and ISVs."
The company that invented enterprise computing. Well, well. So, does that mean SCO got it backwards when it sued IBM for allegedly misusing *SCO's* high-end enterprise UnixWare technologies? Well, where did it come from originally?

Let's contrast all of this with what SCO wrote in its Second Amended Complaint against IBM in 2004:

49. From and after September 1995, SCO dedicated significant amounts of funding and a large number of UNIX software engineers, many of whom were original AT&T UNIX software engineers, to upgrade UnixWare for high-performance computing on Intel processors.

50. By approximately 1998, SCO had completed the majority of this task. That is to say, UnixWare had largely been modified, tested and "enterprise hardened" to use Intel-based processors in competition against IBM and Power PC chips, the Sun SPARC chip and all other high-performance computing UNIX platforms for all complex computing demands. The term "enterprise hardened" means to assure that a software product is fully capable of performing under the rigorous demands of enterprise use.

51. SCO was ready to offer large enterprise customers high-end UNIX computing platforms based on inexpensive Intel processors. Given the rapid growth of Intel's performance capabilities and Intel's popularity in the marketplace, SCO found itself in a highly desirable market position. In addition, SCO still had its SCO OpenServer business for retail and inventory-targeted functions, with its 4,000 applications.

52. Prior to the events complained of in this action, SCO was the undisputed global leader in the design and distribution of commercial UNIX-based operating systems on Intel-based processing platforms.

Project Monterey

53. As SCO was poised and ready to expand its market and market share for UnixWare targeted to high-performance enterprise customers, IBM approached SCO to jointly develop a 64-bit UNIX-based operating system for a new 64-bit Intel platform. This joint development effort was widely known as Project Monterey.

54. At this point in time, IBM's UNIX expertise was centered on its own Power PC processor. IBM had little or no expertise on Intel processors.

55. SCO, on the other hand, had over 15 years of expertise in adapting UNIX to Intel based systems. Moreover, SCO had spent the previous 18 months working closely with Intel to adapt its existing UnixWare product to work on the new 64-bit Intel processor. That project, known as "Gemini-64," was well underway when work on Project Monterey was started. In furtherance of, and in reliance on, IBM’s commitment to Project Monterey, which included IBM's commitment to SCO to create joint sales and marketing opportunities, SCO ceased work on the Gemini-64 Project and expended substantial amounts of money and dedicated a significant portion of SCO's development team to Project Monterey. Specifically, plaintiff and plaintiff’s predecessor provided IBM engineers with valuable confidential information with respect to architecture, schematics, and design of UnixWare and the UNIX source code for both 32- and 64-bit Intel-based processors.

One of the things SCO is suing IBM over is NUMA. Is that not hilarious, in this new context? First, IBM and Sequent beef up UnixWare, thereby providing it with high-end capabilities it didn't have before that point. The joint partnership doesn't go the way everyone hoped, mainly because Intel didn't deliver on its part of the project on time, and by the time Merced arrived, the market had moved on. So does SCO then give everyone back the code it received? No. Instead it sues IBM for that high end code, like NUMA. Is that a bit much or what?

But I don't need to editorialize. You have eyes. Read the two press releases, and you can compare them for yourself. If your eyes work like mine, you'll see that the Second Amended Complaint isn't particularly accurate.

Here are the two press releases attached to the 8K:

*************************************

SCO AND IBM FORM BROAD STRATEGIC ALLIANCE

SCO'S UNIXWARE 7 BECOMES KEY MEMBER OF IBM'S NEW UNIX PRODUCT LINE; ISVS AND CUSTOMERS TO BENEFIT FROM SINGLE INDUSTRY-STANDARD UNIX PLATFORM THAT SPANS ENTIRE ENTERPRISE ENVIRONMENT

SANTA CRUZ, CA (OCTOBER 26, 1998) - SCO (NASDAQ:SCOC) today announced that it has entered into a strategic business agreement with IBM (NYSE:IBM). SCO and IBM, in collaboration with Intel and other key partners, will aggressively accelerate worldwide growth of Intel processor-based UNIX servers for the enterprise, and will deliver a single UNIX product line for today's Intel IA-32 systems and future IA-64 systems. The result will be a single product line that will run on IA-32, IA-64 and IBM microprocessor systems that range from entry- level servers to large enterprise environments.

Under the new agreement, IBM will make SCO's UnixWare 7 its 32-bit UNIX operating system for the high-volume Intel-architecture enterprise market. IBM will apply substantial resources to promote and sell the UnixWare 7 operating system worldwide, and will offer it as a member of its new UNIX product line.

In addition, IBM will contribute AIX technology to SCO's UnixWare to enhance its scalability and enterprise capability. This will complement the data-center engineering collaboration by SCO's OEM partners (Compaq, Data General, ICL and Unisys) to integrate extensive data-center capabilities into the UnixWare platform. IBM is also allocating engineering resources to ensure the availability of IBM and AIX middleware on the UnixWare platform.

Over time, SCO and IBM will increase compatibility between UnixWare and AIX, providing ISVs a single platform to port to for UNIX systems on Intel and Power processors, while giving enterprise users greater choice and opportunity in utilizing key applications.

Furthermore, SCO and IBM's 64-bit development teams are collaborating to develop a 64-bit UNIX operating system. The companies are working closely with ISVs to make it the industry-standard UNIX system on IA-64. SCO will handle general channel distribution for the jointly developed product.

"We are extremely pleased that IBM is making this strong commitment to SCO, and has taken action to immediately begin selling and supporting UnixWare 7 through its worldwide sales force," said Doug Michels, president and CEO, SCO. "And since applications are the key to the success of both a platform and its users, SCO is especially excited to be working with IBM and Intel to make it easy and attractive for ISVs to create software for a single target UNIX System environment that covers the entire range of enterprise computing."

"IBM's AIX enterprise technology when combined with UnixWare's technology and SCO's market share leadership will create the high-volume platform for Intel- based servers," said Dr. John E. Kelly III, vice president of Server Development at IBM. "With Intel's support, this platform will become the leading UNIX operating system for Intel-architecture based servers."

IBM joins other leading OEMs committed to selling UnixWare 7 into enterprise environments of all kinds. IBM will apply significant sales and marketing resources to drive UnixWare 7 volume in the enterprise.

In addition, IBM and Intel will drive a substantial ISV recruitment program designed not only to increase the number of applications available for UnixWare 7, but to also make UnixWare 7 a top tier port with all key ISVs. IBM will begin immediately by moving a broad range of IBM and AIX middleware to UnixWare 7.

"Intel strongly supports this product line as the leading UNIX for IA-32 and IA- 64," said John Miner, corporate vice president and general manager, Enterprise Servers Group, Intel Corporation. "Intel is working with IBM and SCO to make this the first UNIX port and volume leader with all ISVs."

Visit http://www.sco.com/monterey and http://www.ibm.com/servers/monterey for more information on today's announcement.

ABOUT SCO

SCO is the world's number one provider of UNIX server operating systems, and the leading provider of network computing software that enables clients of all kinds - - including PCs, graphical terminals, and NCs - to have Webtop access to business-critical applications running on servers of all kinds. SCO designed Tarantella software, the world's first application broker for network computing. SCO sells and supports its products through a worldwide network of distributors, resellers, systems integrators, and OEMs. For more information, see SCO's WWW home page.

SCO, The Santa Cruz Operation, the SCO logo, SCO OpenServer, Tarantella, the Tarantella logo, and UnixWare are trademarks or registered trademarks of The Santa Cruz Operation, Inc. in the US and other countries. UNIX is a registered trademark of The Open Group in the US and other countries. Java, Java Studio, Java Workshop, Sun, and Sun Microsystems are trademarks or registered trademarks of Sun Microsystems, Inc. in the US and other countries, and are used under license. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

**************************

IBM LAUNCHES MAJOR UNIX INITIATIVE

Significant support from SCO, Sequent, Intel and OEMs

SOMERS, N.Y., October 26, 1998 . . . IBM today announced a major UNIX operating system initiative with a number of industry partners. This initiative will create a high-volume platform that will expand business opportunities for ISVs and OEMs.

As part of this initiative, a UNIX operating system will be developed for Intel's IA-64 using IBM's AIX operating system's enterprise capabilities complemented with technology from SCO's UnixWare and Sequent's PTX operating system. IBM will also transfer AIX technology to SCO's UnixWare and promote the offering in the UNIX on IA-32 market. The result will be a single UNIX operating system product line that runs on IA-32, IA-64 and IBM microprocessors, in computers that range from entry-level to large enterprise servers.

IBM will make significant investments to make this the leading UNIX operating system. IBM's investments will be directed at: porting IBM's middleware portfolio; operating system development to exploit Intel IA-32 and IA-64 and IBM's Power architecture; and investments in technical and marketing support for ISVs.

Intel is providing substantive technical and marketing support to make this operating system the leading UNIX for Intel platforms. IBM and Intel are creating a multi-million dollar ISV fund for this UNIX. This will help software companies deliver middleware tools and application programs for this UNIX environment.

In support of this initiative, IBM has forged alliances with SCO and Sequent, and has gained support from leading OEMs and ISVs.

SCO, the market share volume leader of UNIX operating systems, and IBM will collaborate to accelerate enhancements to SCO's UnixWare product for IA-32. Also, SCO and IBM will work together to co-develop and market this UNIX for the IA-64 based market.

Sequent, the leading provider of high-end, Intel-based UNIX systems, will be a co-developer, contributing its cc:NUMA technology and Intel architecture expertise.

"The combination of IBM's enterprise expertise and software, SCO's shrink-wrap UNIX expertise and channels, Sequent's system expertise on IA, and the price- performance benefits of Intel architecture will make this a high-volume UNIX leader," said John Miner, vice president and general manager of Intel's enterprise server group. "Intel strongly supports this software initiative, and will work with IBM and SCO to make this the first UNIX port for all computer manufacturers and software developers."

"We're extending into broader markets with our award-winning AIX software that delivers the reliability and security required of an enterprise-class operating system," said Bob Stephenson, senior vice president, IBM Server Group. "Working with these companies, we're capitalizing on the base of proven leadership technologies to deliver the world's best UNIX on Power microprocessor and high- volume Intel microprocessor systems."

"SCO is delighted to be at the heart of this major announcement," said Doug Michels, SCO's CEO. "It's a great opportunity to take SCO's products to a new range of enterprise customers. Customers can now deploy major applications on both 32-bit and 64-bit technology, with the volume economics of a reliable, scaleable UNIX-on-Intel. We see this collaboration with IBM -- the company that invented enterprise computing -- and Intel, as a major benefit for our customers, OEM partners, and ISVs."

"Sequent is committed to delivering our customers the industry's leading UNIX for IA-64 with the introduction of Merced-based systems. The AIX partnership provides the clear choice, combining proven technology, tremendous resources and unprecedented industry support," said Casey Powell, chairman and CEO of Sequent.

A number of computer systems manufacturers announced their plans to use the new UNIX software. They include Acer, CETIA (a subsidiary of Thomson-CSF), Groupe Bull, ICL, Motorola Computer Group, and Unisys Computer Systems.

Leading software companies announced their support for the new UNIX software. They include BEA Systems, BMC Software, Data Pro Accounting Software, Informix, Infospace, Micro Focus, Netscape, Novell, Pick Systems, PeopleSoft, Progress Software, Real World, Risk Management Technology, Software AG, SAS Institute and TakeFive.

IBM also announced it will deliver its software products, such as the DB2 database program, on the SCO UnixWare software.

UNIX is a trademark of The Open Group

All other trademarks are the property of their respective companies.


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