SCO Backing Off Linux Invoice Plan

rocketjam writes "CNet is reporting that the SCO Group is backing off plans to send invoices to corporate users in an effort to generate more takers of their Linux licensing plan. A spokesman said SCO executives were happy with current progress in the licensing program, and didn't feel they needed to send out invoices yet. SCO also extended the 'introductory' licensing price to the end of October, at which point the amount they are asking will double. Despite SCO's threats, 84 per cent of CIOs in a recent survey said it hasn't affected their plans to implement Linux."

Comments

Re:plans haven't changed

[Mostly a lurker]

Didn't plan to before, still don't plan to.

Not according to the article:

... 84 percent of CIOs with Linux installation plans had not re-evaluated their plans in response to the SCO litigation. Of the respondents, 73 percent had Linux implementation plans, according to the survey

Re:"Backing off" deserved profits?

[Rajesh Gupta]

Regardless of law, SCO is making dents in sales all around the world. Here in India, SCO had a deal with our country's biggest life insurance company. All these success stories have in part been made possible by all the publicity SCO had lately.
Remember Rael's cloning stuff ? Same thing here folks. Hopefully, Rael lives far enough from us :)

Save that FUD for later...

[TitanBL]

"The executives have said we haven't had to do it yet," SCO spokesman Blake Stowell said of the invoice plan. They're happy with progress in the licensing program."

Translation:

Our stock is still soaring from our last round of FUD. The board is concerned we might have used too much of our FUD supply pumping our share price up and might not have enough left over to cover our asses when we start dumping our shares. Just good textbook FUD managment.

People are actually buying SCO stock

[lee-irving]

SCO Stock soars

Another one

Fastest Growing Company !!!

If this is the advice given to investors then it is no wonder that the markets are in such a mess. In fact these experts think that $45 dollars will be a fair target.

"Skiba calculated his $45 price target by forecasting earnings and revenue based on licensing agreements for Unix and other licensing opportunities."

Do we know whether or not the licenses granted to Microsoft etc were perpetual or annual, because otherwise I cant see where they think the additional funds will come from ?

From the article it also looks as though they are still angling for IBM to buy them for $1 BILLION. I think IBM will not buckle and will just crush them.

The situation in Europe

[panurge]

Sending out invoices in Europe could be fraught with problems. This is because of the way European sales tax works.

If a corporation issues an invoice to another business in the same country, then it is legally obliged to collect the sales tax (TVA, VAT, MWST)and pay it to the government. The tax has to be paid on a due date which may be before the invoice is paid. The other company pays the invoice including sales tax, then claims the sales tax back (yes, I agree, it's hard to think of a more stupid system but it is intended to combat fraud.)

If SCO tries the scam of sending out invoices, it will incur a huge liability for tax. The tax liability is a big inducement not to send out fraudulent invoices. Eventually the invoices will appear as bad debts, and that won't look good on the balance sheet either.

This leaves SCO with the option of sending out cross-border invoices. However, these are far less likely to be paid since even the most nervous accountant is unlikely to want to pay a US invoice for the claimed use of IP in a German product.

And my conclusion? Even more R&D and backoffice business goes to Europe, China and India. It's safer to do business there.