Caldera Says Microsoft Hurt Linux OS

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April 28, 1998 (5:32 PM EDT)

By Andy Patrizio,

Caldera has accused Microsoft of pressuring original equipment manufacturer partners not to license its OpenLinux operating system, but Microsoft denied the allegations Tuesday, saying Caldera is out to "tarnish" Microsoft's image.

Caldera said Microsoft urged a "top five" computer maker not to license OpenLinux, but will not name the company. "Microsoft is a big company and they will do whatever they feel they need to do to maintain their monopoly," said Bryan Sparks, president and CEO of Caldera, based in Provo, Utah. "If you do something to upset them, who knows what the repercussions are."

OpenLinux is Caldera's implementation of the Linux operating system, a free, multiplatform Unix that enjoys its greatest support on the Internet. Caldera is a start-up founded by former Novell chairman and CEO Raymond Noorda.

But Microsoft flatly denies the charge. "This is another transparent and desperate attempt by our competitors to tarnish our image," said Jim Cullinen, a Microsoft spokesman. Cullinen said Compaq and Hewlett-Packard both offer The Santa Cruz Operation's UnixWare to their major accounts, with no objection from Microsoft.

The accusation has Microsoft hopping mad. "These are baseless and groundless accusations, and we are considering all our legal options to make sure these kinds of accusations aren't allowed to continue," Cullinen said. "We are not going to let comments like that go unanswered."

Sparks said Caldera has no plans to bring formal charges against Microsoft in the matter, but the company is already suing Microsoft for alleged anticompetitive practices it says the software giant used to stifle sales of DR-DOS, an MS-DOS competitor Caldera bought from Novell in 1996. That suit, Sparks said, "will expose predatory acts that Microsoft does that we believe are illegal." The lawsuit also addresses the OpenLinux issue, he added.

But at least one analyst does not buy Caldera's story, and thinks the start-up has made a huge mistake by publicly accusing Microsoft. "Without demonstrating a substantial revenue potential, hardware companies are not going to sell [OpenLinux]," said Rob Enderle, senior analyst with Giga Information Group, in San Jose, Calif. "Microsoft doesn't have to do anything like this. All it would do is land them in court."

Enderle said he also believes Microsoft is going to begin answering all its critics. "I'm not sure I'd go out of my way to make them mad," he said. "A suit against a major company -- win, lose, or draw -- can get very expensive."