Caldera Systems quickly found itself in a classic business problem where the interests of the existing business conflicted with their growth model. Santa Cruz Operation (SCO) was a much larger company than Caldera Systems had been, and in fact of the $71 million of revenue 90% was from the SCO side of the business. Moreover, Caldera Systems costs $4 in marketing to generate a $1 in sales, SCO was mature and sold itself (mainly to repeat customers). The VAR relationship was even more problematic. Caldera Systems had always sold the "Linux is SCO but better" model and had done everything possible to make the transition from SCO to Caldera Systems relatively seamless. Each of the 14,000 SCO resellers made much more from each SCO sale than from sales of Caldera Systems, so they were not anxious to move existing customers from SCO to Linux; and even those, that were supportive of Linux, saw no strong value add for Caldera Systems and often sold Red Hat Enterprise Linux. Caldera Systems had two businesses in direct competition, one, which was a shrinking, but still profitable Unix business, the other a rapidly growing business, that was still hemorrhaging money.