The Time to Upgrade Your SCO OpenServer Customers is Now!

1. The Time to Upgrade Your SCO OpenServer Customers is Now! Mart Withers Michelle Chatwin

2. Session Process • Recording to be made available • Scheduled for 60 minutes • Ask questions through the Web console

3. Purpose • Opportunity to move your existing SCO OpenServer customers to Release 5.0.7 • Drive more revenue to you • Simplify future upgrades • Prepare your customers for the Legend release

4. Agenda • Promotion overview • SCO’s core business • Reasons for upgrading customers • Customer influencers • How to upgrade customers • Sales and marketing tools • Channel promotion • Q&A

5. Promotion Overview • SCO OpenServer 5.0.7 with SCO Update • 15% additional margin • Promotion runs from March 1 to August 31, 2004

6. Poll: How many of your customers are running Release 5.0.6 or older? • Less than 10 customers • Between 10 and 50 customers • Between 50 and 100 customers • Over 100 customers • None

7. SCO’s Core Business

8. Customers Small and Large Rely on SCO OpenServer Mass Merch. / Retail Business Services Pharmacy

9. SCO Value • SCO OpenServer delivers rock-solid stability, security, and dependability on commodity hardware • SCO delivers worldwide support, consistent 24-month roadmaps, and unencumbered IP

10. Small Business Opportunity • Small business shipments will increase by 15.4% annually thru 2007 • Basic needs for network, multi-user applications, shared printers, back-up, security, and shared Internet connection • Even by 2007, only 43% of small businesses will be networked

11. Still only 1000! Fortune 1000 8 thousand Large Business (1,000+) 93 thousand 7.9 million Mid-size Business (100–999) 32.7 million Small Business (<100) 73.9 million Home Office Consumer Households (Non-Home Office) More technology migrating down market U.S. Market Business View

12. Small Business Characteristics • Reasons businesses adopt technology • Improve efficiency and productivity • Save money • Increase competitive advantage • Small businesses want proven, mainstream technologies tailored for their markets Source: U.S. Department of Commerce, “Main Street in the Digital Age,” Feb. 2002

13. Reasons for Moving Customers to SCO OpenServer 5.0.7

14. Key Customer Messages • Includes upgrade to SCO OpenServer Legend at no additional product cost • Delivers the latest enhancements, new features, and support for a more secure system • Leverages legacy applications • Provides increased performance on the latest hardware (time is money) • Sustains rock-solid stability and dependability

15. SCO OpenServer Customer Solutions • Provide e-mail services and shared calendar with SCO Office Mail Server 4.1 • Share printers, faxes, and data for internal collaboration • Protect data with regular back-ups • Connect traveling or off-site workforce • Provide shared high-speed Internet access

16. Release 5.0.7 Delivers New Features

17. More Reasons for Moving Customers to SCO OpenServer 5.0.7 The Product Roadmap

18. UP 4 – Q3’04 • FOCUS • Samba 3.x • Apache 2.x • GCC 3.x • XFree86 • Improved Security • PAM/NSS UP 3 – Q2’04 • FOCUS • Java 1.4 • User Level Threads • DVD-R Utilities & Back-up • Joliet CD Filesystem • Ultra DMA for IDE CDs • Improved SCOadmin • WebFace and Web Services SCO OpenServer 5.0.7 Updates • FOCUS • USB Printers • CUPS Printer Subsystem • Gimp-print • Latest Mozilla • Bind Improvements • PostgreSQL UP 2 – Q1’04

19. Legend Roadmap UP1 – Q2’05 RELEASE – Q4’04 • FOCUS • Major kernel advances • Single certification • Large file size (1 TB) • Added hardware support • Simplified installation • Graphical user interface SCO FORUM 2004 BETA – Q3’04 PREVIEW – Q2’04

20. Poll: Which OpenServer feature is the most important to your customers? • Applications availability • Hardware availability • Large file size support • Graphical interface • Web services integration • Java updates • Other

21. More Reasons for Moving Customers to SCO OpenServer 5.0.7 SCO Update and Services Drive Additional Revenue Opportunities

22. SCO Update Overview • Licensed online upgrade service • Delivers new and/or enhanced features, drivers, maintenance, and security patches • Provides cumulative updates between major releases • Includes next OS release • Proactive e-mail notices of updates • Available through standard SCO channels • New revenue opportunities • Additional value to bundle • Regular revenue from update process • More frequent customer interaction

23. SCO Update Comparison

24. SCO Update Provides Upgrade Protection • Distributes new features incrementally • Includes the next major release (Legend) • Provides price protection on upgrade

25. Sweeten Deal with SCO Services • Unlimited and per incident (up to 20% margin) • New low-priced 3-month Server response support ideal for upgrades, installation, and configuration • PS Promotion: $10K or more receives e-mail consulting service used at your discretion • Subcontract to SCO and receive finder’s fee

26. How to Move Your Customers to SCO OpenServer 5.0.7 with SCO Update

27. Target #1: Customer Upgrades Hardware • Slow performance of a 5-year-old Pentium system wastes customer’s time • SCO OpenServer 5.0.7 running on Pentium 4-based processor increases performance • Near-term ROI for increased workforce productivity • SCO OpenServer has over 7,400 compatible hardware devices

28. OpenServer 5.0.7 Hardware Certification Certified = Available nowPlanned = On certification roadmap Legend = Planning with vendor

29. Target #2: Customer Upgrades App • Compelling features drive application upgrade • SCO OpenServer 5.0.7 completes the upgrade with the latest features, security, and advances • The customer enjoys the ROI from increased efficiency and convenience

30. by ICM Systems OpenServer 5.0.7 Application Highlights

31. Target #3: Customer Adds Intranet • Customer wants to collaborate on their network • SCO OpenServer 5.0.7 delivers Windows file and printer sharing, secure remote access, and internal intranet • The results makes it easier and more secure to share data with employees, delivering more productivity and improved communication

32. Poll: Which solution will likely motivate your customers to upgrade? • Increasing hardware performance • Adding new hardware (USB printer, UPC scanner, etc.) • Deploying new application features • Increasing security • Sharing broadband Internet access • Sharing data, printers, faxes, etc. • Implementing SCO Office Mail Server • None of these reasons

33. Customer Influencers

34. Source: State of the VAR Market 2004 #1 Influencer: You • Solution providers are experts in theirfield and they gain credibility by demonstrating expertise • 70% of solution provider revenue comes from existing customers • 70% of revenue from existing customers comes from upgrades • 74% of small businesses don’t have a dedicated IT person

35. Key Partner Wins • AA Truck Renting Corp. • Wanted stability and upgrade servers • SysIntegrators delivered new hardware with SCO OpenServer 5.0.7 Enterprise • Kays Engineering • Wanted networking and more efficiency • Venmar Systems delivered SCO OpenServer 5.0.7 Enterprise on new hardware

36. Source: Jan. 2004 Source: State of the VAR Market 2004 Economy Bouncing Back • The strong economic recovery is resulting in higher IT spending. Server unit shipments grew 19.5%in 2003 • 65% of solution providers report noticeable IT spending increases in last 6 months • Over half of solution providers will target upgrades this year

37. Source: Worldwide Black Book, Dec. 2003 The IT Spending Recovery

38. Poll: Have you observed an increase in IT spending among your customers? • Yes, with a very solid increase in IT spending • Yes, with a solid increase • Yes, but a limited increase • Yes, but a tiny increase • No increase at all

39. Leveraging Channel Promotion and Campaign Tools

40. Promotional Pricing Overview • Improves margin by 15% • Promotion applies to trade-ins that include SCO Update • Promotion runs from March 1 to August 31, 2004

41. Qualifying Trade-in Products • Enterprise, Host, or Desktop • SCO OpenServer 5.0.0 • SCO OpenServer 5.0.2 • SCO OpenServer 5.0.4 • SCO OpenServer 5.0.5 • SCO OpenDesktop (ODT) • SCO UNIX Release 3.2 and later • SCO Xenix

42. Promotional Trade-in Pricing

43. Co-Branded Marketing Tools • Post Card Mailer • Web Banners • Web Page • Ads • HTML email blast • Questions: michelle@sco.com • What marketing resources do you need? Channel survey coming soon.

44. Sample Post Card Mailer

45. Sample Web Banners and Sample Web Site

46. Sample Ads

47. Sample HTML Email

48. Upgrade Resource Web Page • Location: Partner Lounge under the “What’s New” section www.thescogroup.com/login • Contains: • Co-Branded Marketing Tools • Webinar Archive • Channel Rebate Program • White Paper • Promotional Pricing • End User Presentation • Data Sheet • Login questions: partners@sco.com

49. Questions & Answers Mart Withers Michelle Chatwin

50. Partner Benefits Summary • Improve your margin • Boost product and service revenue with trade-ins to OpenServer 5.0.7 • Establish regular service revenue with SCO Update services • Sweeten your revenue with Services finder fees