From Tuesday's Financial Post:
Tuesday, August 19, 1997
Corel drops plans for Java, says it has new
technology
By JILL VARDY
Technology Reporter The Financial Post
OTTAWA - Corel Corp. announced yesterday it has scrapped its previously announced plans to produce new versions of all its software in the Java programming language. Instead, the Ottawa-based company said it has developed technology that allows software to run on
any kind of operating system or hardware from a centrally located server. The new technology will replace Corel's plans to write software in Java, the universal programming language that can be read
by any computer operating system. Code-named Remagen, the new technology allows companies to concentrate software applications
in one central location - with network computers or PCs dialing into the server for required software - instead of loading software into each machine.
"We think this will be very dramatic," Michael Cowpland, Corel's president and chief executive, told analysts on a conference call yesterday. "It allows people to have low cost of ownership without
giving up functionality."
Remagen is at the core of Corel's plan to grab a larger share of the lucrative corporate market, in which it has a toehold against rivals Microsoft Corp. and Lotus Corp. Some analysts were uncertain
about the decision to abandon Java programming.
"In theory, one application that runs on multiple platforms is the way to go," said David Wright, director of research for Marleau, Lemire Securities Inc.'s technology group.
"But in terms of strategy, is Corel positioned to win market share, and does it have a successful track record in that market? This doesn't make me jump up and down and say, aha! Finally!"
The new strategy suggests Corel has abandoned its much-publicized plan to be the first company to offer all its software in Java. Corel's first attempt, a Java prototype version of its Office software, has been criticized by users as too slow.
"We don't believe Java is the centre of the world," said Paul Skillen, Corel's vice-president of software development, in the Aug. 13 edition of Windows Watcher Online magazine. "We've come
to realize it doesn't make much sense to just rewrite an application in a new language."
David Kramer, technology analyst at RBC Dominion Securities, said Corel is now admitting "Java Inc. is not ready for prime time.
"Now they're saying, 'Let's come up with a way to run applications on old computers without having to rewrite the applications.' "
Another part of Corel's new plan for corporate users is to divide its software applications into components. That makes them easier to store on a server and send to a network machine. Dubbed CorelCentral, the new component plan will also make it easier to run Corel software on corporate intranets.
Analyst Jane Dragone of First Marathon Securities Ltd. congratulated Corel. "I think the enterprise software is the right way to go."
Kramer, who initiated coverage of Corel last week with a "buy" recommendation, said he will wait to read an upcoming technical paper on Corel's new technology before throwing his support behind
the company's plan.
Corel's shares (COS/TSE) closed down 5› yesterday at $9. |
