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Technology Stocks : All About Sun Microsystems
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To: John Chen who wrote (8429)3/20/1998 10:53:00 PM
From: E_K_S  Read Replies (1) of 64865
 
Hi John - Maybe Sunw needs to look at their pricing model.

(http://www.techweb.com/wire/story/TWB19980320S0027)

From the article: "...If they want to gripe about our licensing fees, they can negotiate with us," he said. "Our pricing model is scaled to volume. If someone is building a high value, low cost device, we charge very little...".

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I really do not know what the best pricing model should be but HWP did not even call SUNW to discuss their plan. Maybe SUNW's license fees for embedded systems should be based on the same model that is now used for PC BIOSIS systems (Core-Licensing Primer: From 'A' To 'Free'http://techweb.cmp.com/eet/ip98/primer.html).

In any case, SUNW's administrative licensing group should promote their "Pure JAVA" software in a manner that allows competitors to utilize their code (ie. license it) where cost is not perceived as a significant factor. This is eaisly accomplished with the right promotion from SUNW.

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I view this as a minor slip up from Sun's management but the spin today from the different "press" releases was controlled quite well.

I continue to appreciate good management and Sun's group still ranks the top on my list.

EKS
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