Compaq and SCO Announce Strategic Alliance for the Enterprise

Skip to first unread message

Jan Tarzia

Aug 20, 1997, 3:00:00 AM8/20/97


Companies Join Forces to Promote SCO UnixWare as the Standard UNIX Operating
System for Intel-Based Enterprise Servers

HOUSTON and SANTA CRUZ, CA, August 19, 1997 Compaq Computer Corporation
(NYSE: CPQ), the world's leading supplier of personal computers and servers,
and SCO (NASDAQ: SCOC), the world's leading supplier of UNIX server
operating systems, today announced that they have signed a contract
establishing a strategic alliance. In addition to enhancing efforts in the
areas of joint engineering, service/support, and testing, the alliance
establishes a multi-million-dollar joint worldwide marketing fund for the
promotion of enterprise solutions based on SCO UNIX and Compaq servers.

Both companies affirmed their commitment to deliver all the benefits of a
flexible, easily deployed, enterprise-level UNIX system on industry-standard
servers at price points significantly lower than those of RISC-UNIX systems.

"Bottom line is, we outperform proprietary RISC-UNIX systems that are almost
twice as expensive as our servers," said John T. Rose, Senior Vice President
and Group General Manager, Enterprise Computing Group, Compaq Computer
Corporation. "We are committed to providing customers with standards-based
UNIX systems that are more powerful, easier to use and more affordable than
RISC-based systems. It's a killer

combination of customer benefits that explains why Compaq and SCO have
become the leading providers of Intel processor based UNIX solutions."

"The Compaq and SCO alliance provides enterprise customers with the benefits
of volume and standards in the midrange server segment that proprietary
systems cannot match," said John Miner, Vice President and General Manager,
Enterprise Server Group, Intel Corporation. "Powerful UNIX systems are now
available at price points never thought possible only a few years ago, due
to the power of Intel architecture based servers."

"The Compaq and SCO alliance is strong evidence that the UNIX operating
system continues to grow and prosper as we move into next century," said
Alok Mohan, President and CEO of SCO. "The alliance enables businesses of
all sizes to deploy proven business-critical solutions on the world's
leading volume servers. The Compaq and SCO solution is extremely
cost-effective and powerfully robust. Customers can enjoy all the classic
benefits of UNIX reliability, performance, and scalability."

Scope of Relationship
The relationship between Compaq and SCO includes several key initiatives
that will benefit customers, including:
* Joint marketing. Combines worldwide joint marketing funds to deliver joint
seminars, trade show participation, account briefings, communications, and
more. For example, Compaq participated in SCO's recent Quarterly Business
Briefing seminars focusing on new solutions in computer telephony for VARs.
This program covered 28 cities this summer.
* Joint engineering and development. Focuses on strategic planning and
development of integrated solutions with faster time to market, easier
implementation and maintenance, enhanced availability, manageability and
scalability, and improved price-performance. For example, SmartStart,
Compaq's intelligent integration tool, allows customers to get their SCO
UnixWare systems up and running quickly and effortlessly; and Insight
Manager, Compaq's system management tool, controls hundreds of server
parameters and alerts customers to potential system failures. In addition,
Compaq and SCO are working together on such leading technologies as PCI
Hot-Plug, SCO UnixWare system clustering, and intelligent I/0.

* Joint service/support programs. Dedicated personnel at Compaq and SCO who
share technical tools and information to better help customers with
technical issues. Compaq and SCO joint solutions are supported through their
Technical Support Alliance, Engineering Services Agreement, and Service and
Support Programs provided by Compaq's worldwide network of service partners.
* Joint testing. Establishes a program in which SCO and Compaq solutions are
tested extensively in a laboratory environment before customer delivery,
ensuring that customers get highly integrated, fully tuned solutions that
meet their business needs.

Cracker Barrel Deploys Countrywide Solution
SCO UNIX systems running on Compaq platforms have become the solution of
choice for customers requiring unparalleled power and reliability, along
with the benefits of industry-standard flexibility and an uncompromising
commitment to a lower cost of ownership. Cracker Barrel Old Country Store,
Inc., which operates restaurants and retail stores throughout the U.S.,
updated its computing systems by deploying 300 Compaq ProLiant 2500 servers
and SCO OpenServer Release 5.0, which together meet the company's combined
back-office and point-of-sale computing needs. "When we evaluated different
hardware vendors, we talked specifically about the extent of their working
partnership with SCO," said Mike Matheny, Vice President of Information
Services for Cracker Barrel. "Compaq and SCO had established a track record
that no other vendor could match."

First Moscow Savings Bank Up-Grades
In Russia, Compaq systems running SCO UNIX have become the IT foundation
for two large banking institutions. First Moscow Savings Bank, one of the
largest banks in the capital with over 750 branches, employing a workforce
of over 22,000, is a multifaceted finance and credit institution that
up-graded its large installed base of Compaq servers to dual-processor
ProLiant servers. "All in all, the Compaq computers achieved the best
results in terms of reliability and performance using both the selected
primary operating system, SCO UNIX, and the bank's own software," said N.A.
Malikhin, First Deputy to the Director of the IT and Automation Department
of the Moscow Savings Bank. This successful deployment led the way to a very
large contract this year with the Savings Bank of the Russian Federation to
provide over 700 Compaq servers with SCO UNIX.

Compaq and SCO Leaders in UNIX Solutions
The Compaq and SCO relationship dates back to 1989, when Compaq introduced
its SystemPro server. Today Compaq is the largest supplier of systems
running SCO UNIX systems, with a greater than 20 percent share of the
worldwide SCO UNIX market. SCO has a 35 percent share of the worldwide UNIX
server market and 78 percent of the UNIX on x86 worldwide server market.
UNIX systems running on Intel processor based systems provide powerful
enterprise solutions that offer significant customer benefits today and the
promise of other benefits in the future. Both Compaq and SCO are deeply
committed to retaining their leadership positions and growing their market
share of this thriving business.

About Compaq
Compaq Computer Corporation, a Fortune 100 company, is the fifth largest
computer company in the world and the largest global supplier of personal
computers, delivering useful innovation through products that connect people
with people and people with information. The company is an industry leader
in environmentally friendly programs and business practices. Compaq is
strategically organized to meet the current and future needs of its
customers, offering Internet and enterprise computing solutions, networking
products, commercial PC products and consumer PCs. As the leader in
distributed enterprise solutions, Compaq has shipped over a million servers.
In 1996, the company reported worldwide sales of $18.1 billion. Compaq
products are sold and supported in more than 100 countries through a network
of authorized Compaq marketing partners. Customer support and information
about Compaq and its products can be found on the World Wide Web at or by calling 800_OK_COMPAQ. Product information and
reseller locations can be obtained by calling 800-345-1518.

About SCO
SCO is the world's leading supplier of UNIX server operating systems, and a
leading provider of client-integration software that integrates Windows PCs
and other clients with UNIX servers from all major vendors. SCO is committed
to bringing the Internet Way of Computing to business-critical environments
of all sizes. SCO Business Critical Servers run the critical, day-to-day
operations of large branch organizations in retail, finance, telecom, and
government, as well as corporate departments and small to medium-sized
businesses of every kind. SCO sells and supports its products through a
worldwide network of distributors, resellers, systems integrators, and OEMs.
For more information, see SCO's home page at
# # #
Compaq and ProLiant Registered U.S. Patent and Trademark Office. SCO, The
Santa Cruz Operation, the SCO logo, SCO OpenServer, UnixWare, and The
Internet Way of Computing are trademarks or registered trademarks of The
Santa Cruz Operation, Inc. in the USA and other countries UNIX is a
registered trademark of The Open Group in the US and other countries. All
other brand or product names are or may be trademarks of, and are used to
identify products or services of, their respective owners.

For further editorial information, contact:
Compaq Computer Corp.
Jim Cortese

Miller/Shandwick Technologies
Helen Dragoon

Monika Laud

Jan Tarzia
SCO Public Relations
Phone: 408-427-7221
Fax: 408-427-5418

Reply all
Reply to author
0 new messages