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SCO sitting pretty in enterprise arena

SCO sitting pretty in enterprise arena

Now that its enterprise "credibility" among customers is improving, Unix vendor SCO is determined to make the high-end market its domain, according to Doug Michels, SCO's president and CEO.

On a whirlwind visit to Sydney last week, Michels suggested that SCO's channel partners would play a major role in determining the vendor's Australian success.

He was also full of praise for SCO's bold move to write off its worldwide software inventory in favour of electronic software licensing.

"The distribution channel we used to have was inefficient," Michels claimed. "It was a horrible decision to have to make and, at the time, it was one we lost a lot of sleep over," Michels admitted.

"Up until last year SCO would close nearly 70 per cent of its total sales in the last two weeks of each quarter. Now with electronic software licensing we have reduced our inventory dramatically to the point where we only bring in 20 per cent of our revenues in the last two weeks of the quarter," he added.

This restructure was reflected in SCO's second quarter revenues which were up 10 per cent from $US50.5 million to $US55.7 for the period ending last month [subbed].

Michels claimed that e-licensing has enabled SCO to take more control of and have a greater influence over its channel partners. "Our channel can now talk to us about initiatives such as marketing and demand creation that are helping them win more business, rather than mundane issues like asking for more product licences," he said.


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