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Technology Stocks : All About Sun Microsystems

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To: uu who wrote (10725)8/5/1998 2:13:00 AM
From: Dave O.   of 64865
 
From Wed. IBD:

Can IBM And Sun Take
Java Where Users Want To
Go?

Date: 8/5/98
Author: Michael Tarsala

Longtime rivals IBM Corp. and Sun
Microsystems Inc. together are taking a shot at a
common foe: Microsoft Corp.

IBM and Sun on Wednesday are set to reveal
an operating system that will challenge
Microsoft's push into the software market for
computer networks. IBM and Sun said in April
that they were working on the new system,
which they've named Java OS for Business.

The system will run on network computers. NCs
are low-cost, limited-feature desktop machines
connected to larger computers, from which NCs
get much of their power and applications.

The partners hope Java OS for Business will
steal some of Microsoft's thunder. Its Windows
products command nearly 90% of the market for
desktop computer operating systems. And
Microsoft's latest thrust is with its Windows NT
operating software. It targets computer
networks, strong IBM and Sun markets.

''It's not a matter of where you want to go
today,'' said Pat Sueltz, general manager of
IBM's Java software unit, mimicking a Microsoft
slogan. ''It's a matter of where you're starting
from.''

Java OS for Business is cheaper than using
Microsoft, Sueltz says. But the rapidly falling
prices of PCs have hurt NCs. The market for
so-called thin clients is emerging slower than
expected.

Still, IBM, Sun and others view Java - an
Internet programming language created by Sun
that can be used as a computing platform - as
the best weapon to combat Microsoft's
dominance in operating software.

IBM and Sun hope to use the new operating
system in their NCs due to hit the market early
next year. No other computer maker, though,
has committed to supporting Java OS for
Business, Sun officials say.

Target markets include banks, airlines, customer
support centers and other businesses that use
thousands of desktop machines to do a limited
number of tasks. IBM executives say Java OS
for Business could be used by tens of millions of
people within a few years.

''This is for guys that in the old days would buy
terminals 10,000 at a pop,'' said Amy Wohl, an
analyst with researcher Wohl Associates in
Narberth, Pa.

Analysts say Java OS for Business also will help
IBM and Sun sell servers. And IBM's Sueltz
claims Java-based NC networks will help Big
Blue sell consulting and other kinds of services
because more companies will opt for that type of
network.

The two companies benefit from their
partnership, says Wohl. IBM adds clout to Sun's
Java efforts.

''Here is Java, this charming and unruly teen-age
child,'' Wohl said. ''IBM is trying to make it
quickly grow up, so it can do grown-up jobs.
And Sun needs someone who knows how to
deliver software on schedule. It's something Sun
doesn't do very well.''

With Java, IBM and Sun give customers a way
to write applications that can run on many types
of computers - from PCs to mainframes.

''This is a pretty unusual relationship,'' said Karen
Arnett, a marketer with Sun's
consumer-embedded Java division. ''By
collaborating, we think we can bring more
complete products to market faster.''

IBM and Sun have more plans for Java,
including some server technology developments,
Arnett says.

The new operating system allows programs
written in the Java programming language to be
shared across computer networks.

Java also lets businesses manage and maintain
applications from a centralized computer, be it a
server, minicomputer or mainframe. PCs run and
store their own programs.

IBM and Sun hope the new system will become
the standard NC operating software. They're
co-marketing Java OS for Business to other
hardware and software makers.

''We think this will accelerate shipments of
NCs,'' Art Oldberg, IBM's vice president in charge of network computing software, said in
April. At that time, Microsoft executives
repeated their assertions that Windows is the
best platform for running Java applications.

A number of companies have said they'll write
software for Java OS for Business. They include
two of Microsoft's other main rivals, Oracle
Corp. and Netscape Communications Corp., as
well as Computer Associates International Inc.
and Informix Corp.

Java OS for Business at some point might be
used for additional duties. That may include
running kiosks and ticket machines.

Much of the operating system's success will
depend on how the NC market develops.

''There was a little confusion at first about NCs,
and we probably contributed to it by saying
they're replacements for PCs in all situations,''
Arnett said. ''That's not true.''

Sun has softened its stance. Its executives now
say NCs and Java can't always take the place of
Microsoft's Windows.

''We want to convince a broad range of
hardware and software vendors there will be
enough of a platform for thin-client devices,'' said
Jim Hebert, general manager of Sun's embedded
systems software group.

Analyst Wohl says NCs might well find bigger
markets in Asia and Europe, where larger PC
networks are less entrenched than in the U.S.
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