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Technology Stocks : All About Sun Microsystems

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To: Keith Hankin who wrote (7482)1/30/1998 7:22:00 PM
From: Babu Arunachalam  Read Replies (1) of 64865
 
Investments made to optimize Java for Intel

By Niall McKay
InfoWorld Electric

Posted at 5:10 PM PT, Jan 23, 1998
Intel is using venture capital to level the playing field by investing in Java start-ups in return for assurances that these companies' server-side
applications will run as well on the Intel platform as they do on Sun Microsystems' Sparc workstations.

Next week, Intel will sign deals with Java application vendor WebLogic, Java tools vendor SuperCede, and Java virtual machine vendor Tower
Technology. Previously, the company has invested in Java application server vendors such as NetDynamics and tools vendor SilverStream.

Intel's latest moves mirror Sun's strategy for hardware sales. Its investment in Java has helped Sun's hardware sales as well as its industry
mind share. Indeed, officials at one Java application server company, Art Technology Group, in Boston, have said that the company has put at
least $10 million of sales in Sun's direction.

"Java has to date run best on Sun Sparc stations," said one Art Technology Group official.

"I am very glad that Art has put that business our way, and I hope it will continue. But we know that Intel has been working hard to make sure
that it runs well on the Intel processor," said Scott McNealy, chairman and CEO of Sun, in Mountain View, Calif. "But I don't see Intel investing
in Java as a threat to Sun but as a boost to Java."

Meanwhile, others fear that Sun's HotSpot technology will run best on Sun hardware.

Both Symantec and Tower are reading competing versions of Sun's super-fast compiler.

"TowerJ 2.0 is a competing technology to Sun's HotSpot," said Madison Cloutier, vice president of marketing at Tower, in Austin, Texas. "I
think at the end of the day a lot of the hardware vendors fear that HotSpot will run first and best on the Sun platform."

Meanwhile, SuperCede sees Intel's investments as a play to ensure that it is not left out in the cold with Java, officials said.

"We wanted Java to run fastest on the highest-volume platform and so did Intel," said Peter Kellog-Smith, director of product management at
SuperCede, in Bellevue, Wash. "Intel has simply decided to help companies provide the best Java solution on the Intel platform."

Analysts agree that Intel is trying to extend its virtual monopoly into server-side Java.

"I don't sees this as an anti-Microsoft play," said John Rymer, director and senior consultant at Upstream Consulting, in Emeryville, Calif.
"Intel is only interested in backing a potentially very dominant technology."

Intel's strategy is to invest in companies that may in the future infuse the whole market, and as a result sell more Intel processors, according to
officials. Intel has more than 100 investments worth an estimated $500 million.

"But it's not just an investment," said Robert Manetta, spokesman at Intel's investor relations department. "We also engage in joint
development and technology sharing relationships with these vendors.

______________________________________________________________________

Looks like the battle for server space has already begun. I wonder
if a compiler that converts to native machine code is developed for
Java, then the server side code would still be portable if written
in 100% pure Java. Then the fastest hardware would win and that
would probably still be SUN, HWP or IBM?

Cheers,

Babu
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