On 2 September 1998, Caldera, Inc. announced the creation of two Utah-based wholly owned subsidiaries, Caldera Systems, Inc. and Caldera Thin Clients, Inc., in order to split up tasks and directions.
Caldera Systems, Caldera Holdings, Caldera International, Caldera K.K., and The SCO Group
Caldera Systems, Inc. (CSI), headed by Love as president and CEO since its incorporation in Orem, Utah, on 21 August 1998, targeted the Linux-based software business including OpenLinux, with Caldera Deutschland as their German Linux development center. The company reincorporated in Delaware on 2 March 2000 and completed an IPO of its common stock as CALD. On the first day of trading Caldera's shares doubled in value, briefly touching US$33, and by the end of the first day the company had a market capitalisation of US$1.1 billion. However, at a time when technology IPOs were attracting extremely high valuations, Caldera Systems's performance was generally perceived as a disappointment.
The company reorganized in August 2000 and became Caldera International, Inc. (CII) in March 2001.
In May 2001, Caldera International, with investments of Fujitsu and Hitachi, opened the Caldera K.K. (カルデラ株式会社) subsidiary, directed by Makoto Asoh, in Tokyo, Japan.
In August 2002, Caldera International renamed itself into The SCO Group, Inc. under the lead of Darl McBride.
Caldera UK, Caldera Thin Clients, Lineo, and Embedix
Caldera Thin Clients, Inc. (CTC), incorporated in August 1998 and originally led by Gross as president and CEO, instead developed DOS- and Linux-based thin clients and solutions for embedded systems. Originally located in Orem and later in Lindon, it was meant to become the US-based "parent" company for Caldera UK Ltd. When Gross resigned and Caldera UK Ltd. was disbanded in February 1999, and when the attempt to relocate the DR-DOS development into the US failed, Caldera Thin Clients, under the new lead of Sparks, soon refocused on Linux.
In April 1999, Caldera Thin Clients released the no longer needed sources to GEM and ViewMAX under the GNU General Public License (GPL).
On 20 July 1999, Caldera Thin Clients was renamed into Lineo, Inc. Lineo licensed a stripped down OpenLinux distribution from Caldera Systems and named it Embedix. They continued to maintain the former Caldera Thin Clients sales office in Taipei in 1999. In January 2000, Lineo reincorporated in Delaware.
In October 2001, Lineo refreshed and expanded the free CP/M redistribution license after Olmstead's death.
By July 2002, the company had reformed as Embedix, Inc. under the lead of Matthew R. Harris, formerly a Summit Law attorney for Caldera, Inc. Embedix ceased to exist later that year. Some DR-DOS assets fell to the Canopy Group and were acquired by DRDOS, Inc. aka DeviceLogics in 2002. Key parts of the Linux-based Embedix assets were acquired by
