Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Beachbumm who wrote (7290)	1/26/1998 10:20:00 PM
From: Roads End	Respond to of 64865

Gates holds no loyality for him or from him. Here is the article from the Wall Street Journal Interactive tonight. RealNetworks, Sun Plan Pact In Move Away From Microsoft By KARA SWISHER Staff Reporter of THE WALL STREET JOURNAL RealNetworks Inc., a small software company that plays a big role in Internet sound and video, is forging an alliance with Sun Microsystems Inc. that could create tension with one of its partners and major shareholders, Microsoft Corp. The strategic technology and marketing agreement will essentially make RealNetworks' products -- software that allows users and producers of Internet content to send and receive audio, video and other multimedia services using the Web -- work best with Sun's Solaris line of servers. Sun and Microsoft are bitter rivals in setting Internet technology standards, particularly for the server machines used to store and manage Web pages. Sun and its Solaris operating system, a variant of the Unix software used by many computer makers, tend to dominate high-end Web businesses, where reliability and heavy transaction volumes are paramount. But Microsoft is mounting a fierce assault on that business, using its Windows NT operating system to push low-priced personal-computer hardware as Web servers. The deal with RealNetworks, however, could give Sun an important edge, because it is unlike traditional "bundling" relationships where the software is simply offered along with hardware without much integration. Instead, said RealNetworks Chairman and Chief Executive Rob Glaser, Sun and RealNetworks will "optimize" the latest versions of its software specifically for Sun's line of servers. "We're aiming for a dramatic improvement in performance and scalability," said Mr. Glaser. "They will have the servers that work best with RealNetworks' architecture." RealNetworks still plans to make products that work on Windows NT. But the Sun deal is a surprising tilt away from Microsoft, which in July paid $30 million for a 10% nonvoting stake in RealNetworks and also paid it $30 million to licensing the source code of its "streaming media" technology. But Microsoft also recently bought one of RealNetwork's main rivals outright and has been developing and selling its own software called NetShow that competes directly with RealNetworks' products. In a further twist, Mr. Glaser and many of his top managers at the Seattle-based RealNetworks used to be high-ranking executives at Microsoft in Redmond, Wash. As part of the deal announced Monday, Sun of Palo Alto, Calif., will market the combination of RealNetworks and Sun technology to companies that are seeking to deploy multimedia applications in their businesses, including in the entertainment, broadcasting, web-hosting and corporate markets. Sun and RealNetworks will also be developing versions of its popular RealVideo and RealAudio products that will be based on Sun's Java programming language, which is being promoted as an alternative to Microsoft's technology. Bill Correll, a Sun marketing manager, said it was attracted by RealNetworks' technical leadership and what seemed to be weakening ties with Microsoft. "We looked into the Microsoft-RealNetworks relationship pretty closely and feel that they are becoming more competitors than partners," he said. A spokeswoman for Microsoft said the company had no immediate comment on the agreement. Analysts praised the pact. "It's a crucial deal for both of them," said Allen Weiner of Dataquest, a San Jose, Calif., market research firm. "Sun has been sluggish in its attempts to get into this area and this agreement puts them right into the sweet spot, especially with people that might have been considering using Microsoft products."