IBM vs SCO: Difference and Comparison

IBM and SCO are business giants that are famous in their area of work. They provide services and information technology-related products to the people.

The companies have been in a legal battle for some time over a billion dollars in cash. The court case was over some unproven computer data and over this, SCO lost its global reach.

Key Takeaways

  1. IBM is a multinational technology company with a wide range of products and services, while SCO specializes in UNIX-based software and services.
  2. IBM has a more extensive product portfolio and a broader customer base than SCO.
  3. SCO has faced legal disputes over intellectual property rights related to UNIX systems with IBM.


IBM is one of the world’s largest IT companies, with operations in over 170 countries. SCO was a software company that specialized in the Unix operating system. It was founded in 1979 and became a significant player in the market in the 1990s. However, it faced financial difficulties in the early 2000s and filed for bankruptcy in 2007.


IT Quiz

Test your knowledge about topics related to technology

1 / 10

Which of the following is defined as an attempt to steal, spy, damage or destroy computer systems, networks, or their associated information?

2 / 10

The app or software, or website asks about access of your location, camera, storage, contacts etc., are known as

3 / 10

'IoT' refers to

4 / 10

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5 / 10

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6 / 10

Who founded Microsoft?

7 / 10

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8 / 10

While making the text bold in Word, what do you need to do first?

9 / 10

The core idea of develop AI is bulding machines and alogrithms to

10 / 10

Which of the following is not an electronic device?

Your score is


IBM is one of the leading tech giants in the world that specializes in providing smaller companies or even individuals with consultation and solutions to many information technology-related issues.

The company was not always the same since the beginning of its establishment. It had been called something else and due to the course of events that took place, later on, the name along with a few company policies was changed.

SCO is a source of UNIX solutions that help clients worldwide. Their popularity in the field was scarred after they filed a lawsuit against IBM regarding breaching the privacy policies of clients and alleging that codes have been added on the base of LINUX that had impacted the SCO group.

This drop-in popularity hasn’t been alleviated yet.

Comparison Table

Parameters of ComparisonIBMSCO
Full FormInternational Business MarketSanta Cruz Operations, but the name has seen a few changes later on
HeadquartersArmonk, New YorkLindon, Utah
Line of BusinessProducts and servicesUNIX based solutions
Greater Share Hold in the MarketYesNo
Legal Lawsuits FiledNoneYes, against IBM

What is IBM?

IBM stands for International Business Machines. It is a company that provides services on information technology and also consultations via agencies.

These agencies help in gaining a reach all over the world and thereby make sure that its market presence is felt everywhere. Its prime objective is to make sure that the services provided by them are unique and at the same time authentic.

Their headquarters is present in Armonk, New York City. It is a Hamlet-like place that has undergone developments since the years forth.

At the time of its introduction as a company or organization, it was just an assemblage of many smaller companies with lower values and share holds. Their aim that that time was the initiation and then the creation of the Tabulating Recording Company (TRC).

After their primary goal was achieved, they started gaining popularity among technology-related professionals. This later led to the creation of IBM. This change in the name also brought about a huge change in their sales and their products.

They started as a company selling hardware and hardware-like products to eventually become one of the best service provider firms in the world.

By the year 2001, the hardware turned software company started getting a lot of profits and was able to handle the revenue inflow in a proper and structured manner.

This growth in the monetary value of the company gave way to the production of a greater number of products released by the company.

As the technology evolved, so did IBM. By the year 2013, it had developed many new technologically advanced methods such as mobile computer usage and software security.


What is SCO?

 SCO or the SCO group was once formed after the merging of the company called Santa Cruz Operations and another company called Caldera.

Their headquarters is located in Lindon, Utah. The Santa Cruz Operations was the major supplier of the UNIX operations systems that were majorly sourced for Intel Hardware.

Caldera is a LINUX reseller that has market value as a major commercial unit. This merging happened in the year 2002 and that was when the single UNIX owner SCO formed and became a major provider of services.

But the year 2003 brought about the downfall of the SCO group. In 2003, SCO started a legal lawsuit against the IBM group of commercial companies for a price value of one billion US dollars.

The lawsuit was started as SCO alleged that IBM had added in additional details regarding SCO and their UNIX details on the LINUX source code.

This alleged addition would mean a breach of privacy policies that IBM has been claiming to follow and this was the reason behind the lawsuit.

After the filing of the lawsuit, SCO group saw a huge decrease in their regular revenue and also in the way the clients used to approach them before.

This was a huge blow and therefore resulted in a negative graph to their growth chart. Later, the SCO group was barely known and recognized by people for their services and they have remained stagnant in their growth too.

Main Differences Between IBM and SCO

  1. While the headquarters of SCO is located in Utah, the headquarters of IBM is located in Nee York City.
  2. IBM group still has the major information and technology-related consultations and queries from clients in the world, whereas SCO has lost its momentum.
  3. While IBM has both services providing as well as production of hardware capabilities listed underneath the company name, SCO has just UNIX server-based solutions under it.
  4. SCO went after IBM with a lawsuit while IBM had no such lawsuits filed against the SCO group.
  5. In the beginning, IBM had been called something else and had seen a lot of changes since the company had initially begun but on the other hand, SCO has no such drastic changes other than a single merging.
Difference Between IBM and SCO

Last Updated : 02 July, 2023

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