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SCO/Novell/HP Announcement Overview

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Tim Ruckle

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Sep 21, 1995, 3:00:00 AM9/21/95
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Hi folks, this information is also available on SCO's homepage on the
web, but I know that not everybody has web access so I'm posting it
here as well. I think it goes a long way towards explaining what the
business relationships are in this deal, and what the future holds.

Regards,

Tim


EXECUTIVE OVERVIEW


On September 20, 1995 at UNIX EXPO in New York City, Hewlett Packard, Novell
and SCO jointly announced a business relationship to deliver a high-volume
UNIX operating system with NetWare and enterprise services. This process will
occur in phases.

1. Novell will provide its market-leading NetWare services that are essential
for integrating high-end enterprise environments with workgroups and PCs.

2. SCO has purchased the UNIX business from Novell and will consolidate SCO
OpenServer and Novell's UnixWare into a merged high-volume Intel UNIX
operating system. SCO will leverage its proven ability to bring
high-volume UNIX to market.

3. Novell will work with HP to produce a high-performance implementation of
its NetWare Directory Services (NDS) and File/Print Services for HP-UX,
and integrate NDS with DCE.

4. HP will lead and drive the 64-bit UNIX operating system for the HP/Intel
architecture, resulting in the combination of the 64-bit HP-UX and SCO
Intel-based operating systems.

Additionally:

5. Novell will be taking a substantial minority equity position in SCO.

Significance Of The Announcement


1. HP, Novell and SCO have formed a business relationship to deliver a
high-volume UNIX operating system with Network and Enterprise services.

2. Customers and developers can depend upon a single UNIX with a reliable
and easy migration path to 64-bit network computing.

3. Significant step forward for UNIX competitiveness.

4. Set standard for new generation of Network Services.

Customer Benefits


This is beneficial for all of our respective customers because it allows
for better and faster innovation as all three companies can concentrate
on their core competencies. Additionally, it will provide a single UNIX
on the Intel platform, thus allowing application developers and corporate
IT teams to develop to one Intel networked UNIX platform. This will reduce
development, support and maintenance costs as well as facilitating a new
breed of network aware applications. The benefits to customers include:

1. These relationships will provide a smooth migration path to the new
64-bit UNIX operating system for customers using existing products.

2. Helping customers to build distributed solutions standardized on a
single set of network services (directory services, file, print, etc.).

3. Better use and control of networked business information and resources.

4. Faster development and deployment of business critical solutions.

5. Simpler integration and management of Windows environments with business
servers and network services.

6. Single development, support, maintenance for UNIX.

7. The single UNIX implementation for HPIA will provide access to all the
applications previously available for HP-UX, OpenServer and UnixWare.


SCO OpenServer and UnixWare Positioning

For companies in the process of evaluating UnixWare 2 and SCO OpenServer 5,
which should they purchase? Both products will provide a clear migration path
to the merged product and SCO will provide migration tools to protect customer
investments. Although very similar, each product line has its own unique
strengths and customers should make their purchase decision based on which
capabilities they need. UnixWare offers the best NetWare to UNIX integration
available and SCO OpenServer offers a robust business critical application
server platform with the widest support for business applications. Both
products offer exceptional scalability, performance and reliability.

SCO OpenServer Product Family - SCO OpenServer is today's leading UNIX
operating system for running business critical applications on Intel
processor-based platforms. SCO OpenServer systems are exceptional at
running multi-user, transaction based business applications and databases
in both host and client/server environments. SCO OpenServer systems are
the volume leader in the UNIX server market with the widest support for
business applications.

Novell UnixWare Product Family - As NetWare networks have grown in importance,
and networked UNIX operating systems have become the standard for rightsizing,
businesses have come to need a UNIX Server that can seamlessly integrate these
two environments. UNIX powered and NetWare ready, UnixWare is the ideal
platform for MIS professionals in mid-size or large organizations who need a
powerful, cost-effective UNIX system to use with a Novell network.


Distribution And Support Plans

Will UnixWare automatically be available from all SCO authorized distributors
and resellers? No. UnixWare will not be automatically available from SCO
OpenServer authorized distributors and resellers. SCO is currently evaluating
its channel strategy but expects these products will be sold through their
respective channels for the time being. Channel strategies are being
evaluated on a territory by territory basis.

Will authorized UnixWare resellers automatically qualify to sell and support
SCO Products? No. UnixWare resellers who wish to sell and support SCO
products must register and qualify to sell these products under current SCO
distributor or reseller terms and authorization programs.

Should authorized UnixWare resellers continue to take training classes? Yes.
Distributors and Resellers who are trained, or who plan on taking UnixWare
training will absolutely find value in this activity. Because the merged
product will be a combination of the best of both products, UnixWare training
will not be wasted.

Will the UnixWare CNE (Certified Novell Engineers) program continue? Yes.
UnixWare CNE will be transferred to SCO. SCO may decide to integrate this
with SCO's ACE (advanced certified engineer) program through a certification
program for the merged product early in 1997.


Support Transition

Novell will continue to sell and support UnixWare products until the
transaction is completed (Q4'95). SCO will begin to sell and support
UnixWare after the transaction is completed (Q4'95). SCO will utilize
Novell's Provo, Syndey and Dusseldorf UnixWare support staff through
Q2'96. SCO will fully support UnixWare products with its own staff
beginning in Q2'96.

All UnixWare support contracts will remain in effect and active. SCO
will notify customers and channels of any support transfer.

Sales/Marketing Transition

SCO will begin to sell and market UnixWare once the transaction is
completed (Q4'96) SCO will promote and sell both UnixWare and SCO
OpenServer until a "merged" product is available. SCO expects to
increase its marketing and sales staff to accommodate the addition of
UnixWare. Areas needed may include OEM, ISV, Distributor and Programs
Marketing.


SCO "Merged" UNIX Product Roadmap


1996 1997 1998

OpenServer Comet | |
| |
UnixWare Eiger | |
| |
Merged UNIX Migration Tools | "Merged" | 64-bit


SCO has outlined a product roadmap in which both OpenServer and UnixWare
will continue to be individually supported and enhanced. Upcoming releases
include enhanced OpenServer (Comet Release) and UnixWare (Eiger Release)
products in the first half of 1996. Following these releases, a beta of
the "merged" product with a complete software migration toolkit is expected
in the summer of 1996. This beta kit will enable developers to begin
developing their applications to a single, unified product line consisting
of the best capabilities of both environments. Final release of the
"Merged" product will be available in 1997. The merged product is being
designed to offer binary compatibility with existing SCO OpenServer and
UnixWare applications and include a full set of migration tools to ensure
developers can easily migrate to the new line from either predecessor. A
full 64-bit UNIX implementation is expected in 1998.


Product Transition Plan


1995

Continue to develop for OpenServer and UnixWare today... compatibility with
merged product in the future Develop for business opportunity; Server
shipments for UNIX in 1994: 34% OpenServer, 5% UnixWare, and 35% SVR4
variants (not including HP and IBM). Development tools to ease migration
made available with both Eiger and Comet.

1996

Certification program announced in early 1996 to certify software and
drivers for merged product:

Give SCO OpenServer driver, get
UnixWare driver in return

Give SCO UnixWare driver, get
OpenServer driver in return

From early 1997, give either driver, get
merged driver in return

Give merged driver, get both
OpenServer & UnixWare drivers

Early development environment made available to application and driver
writers late in 1996 Migration Toolkits made available in 1996 to help
developers take advantage of new features in Merged product

1997

Merged Product Beta program in 1996-1997

Certification of all major software in first half of 1997.... all
software is expected to work due to binary compatibility

100% of all drivers previously supported in-the-box by OpenServer and
UnixWare, are expected to be available at FCS in 1997

Expect volume sales and deployment of new merged-based applications
software and merged os product by April 1998

SCO Release Descriptions


COMET - Next-Generation of OpenServer

Support for 4Gb memory
UNIX95 compliance
CD based storage objects
Automated performance tuning
Floating Network Licenses
Multibyte support
Bootable mirrored drives
Enhanced mode Windows application support
User threads
P6 compiler
Improved Networking

Product Release Summary:

The "Comet" release is expected in the first half of 1996. This release
will be an enhanced version of SCO OpenServer Release 5 that will include
scalability, performance, reliability,networking and standards enhancements.


EIGER - Next-Generation of UnixWare

Enhanced NetWare 4 Integration
Transports, Client, APIs, Utilities, File, Print, NDS, Admin
Expanded Hardware Support
Windows Support
System Installation Enhancements
Porting and Integration Guide
New C++ Compiler
Merge Available only as Layered Product

Product Release Summary:

The "Eiger" release is expected in the first half of 1996. This release
will be an enhanced version of UnixWare Release 2 that will include Novell's
NetWare 4 network services.


MIGRATION TOOLKIT

Migration Tools for Comet and Eiger Releases:

UnixWare binary compatibility in Comet for most UnixWare applications
ODI network driver support in Comet
AHDK for IHVs developing drivers for both OpenServer and UnixWare
Runtime/Install support for UnixWare applications
UnixWare IHV Development Kit with SCO OpenServer driver migration information

Product Release Summary:

The "Migration Toolkit" layers on top of Eiger and Comet releases and will
enable developers to begin moving their applications to a single, unified
product line consisting of the best capabilities of both environments.


"MERGED UNIX" Merger of OpenServer/UnixWare

OpenServer and UnixWare Binary Application Support
Novell NetWare 4 Network Services
Transports, Client, APIs, Utilities, File, Print, NDS, Admin
OpenServer & UnixWare filesystems

HTFS, DTFS, Veritas (VjFS), AFS etc.

OpenServer Graphical Environment and Administration

Motif, Wintif, X.Desktop, X Server, SCO Admin

OpenServer Graphical drivers
"Merged" Development Environment and Tools
"Merged" UNIX Kernel
Best of Breed Technologies in all Cases, with Backwards Compatibility
Built-in

Product Release Summary:

The "Merged" product release will deliver the best from both the SCO
OpenServer and UnixWare environments in a single, integrated product.
The merged product is being designed to offer binary compatibility with
existing SCO OpenServer and UnixWare applications.

©1995 SCO All Rights Reserved

The Santa Cruz Operation reserves the right to change or modify any of
the product or service specifications or features herein without notice.
This summary is for information only. SCO makes no express or implied
representations or warranties in this summary.

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