To reduce costs and help get the bottom line looking a little more healthy, Santa Cruz Operation Inc has finally merged its two development streams – at the price of product development chief Scott McGregor. Co-founder and CTO Doug Michels takes over responsibility for a new integrated product development organisation the company has created by putting its Client Integration Division and Unix operating system development groups together. CID chief Ray Anderson reports to Michels, who leads the group. Insiders believe McGregor’s resistance to executing the plan, which has been on the cards for sometime as the company tries to improve its financial standing and get the stock moving, meant he had to go. Although SCO publicly hung blame for its disappointing quarter on an easy target – Europe – it is said that overspending on research and development was a significant factor. What the company must now do is to accelerate its delivery of products which won’t be easy as Michels is reportedly known for going down through many levels of detail before making a decision on how to proceed with a product plan. McGregor, who was with SCO for seven years fighting the good [Unix] fight hasn’t landed anywhere else yet, but it’s thought he’d been looking for a more senior role.