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Technology Stocks : Netscape -- Giant Killer or Flash in the Pan? -- Ignore unavailable to you. Want to Upgrade?

To: grasshopper who wrote (2098)	1/26/1998 10:29:00 PM
From: Kal	Read Replies (1) \| Respond to of 4903

netscape outsourcing java development > Netscape's survival guide > By Michael Moeller > > PC Week Online > > Netscape Communications Corp., the one-time > darling of the Internet and Wall Street, is betting its > future on a reorganization that includes trimming its > in-house Java development and revamping its > client strategy. > > The Mountain View, Calif., company, preparing to > announce financial losses this week, hatched a > plan last week to give away Communicator and its > source code and turn future development of the > client over to the masses (see story). > > That aggressive attempt to maintain ownership of > the client market goes hand in hand with renewed > efforts to make good on shipments of SuiteSpot > server components--now the company's chief > source of revenue. > > But those efforts pale in comparison to a drastic > reshaping of its Java development efforts. > Netscape plans to discontinue work on porting > Java run-time technologies to its Navigator > browser, officials said, opting to create an open API > that Sun Microsystems Inc. and other vendors can > use to plug JDK (Java Development Kit) > components into Communicator. > > Netscape officials admitted that the decision to > stop the company's JDK work was due in part to > problems Netscape has faced in getting the latest > versions of Java and JDK technologies out to > users. > > "Work at the Java Porting and Tuning Center and > the fact that nearly all major, and in some case > minor, platforms are ahead of us in JDK 1.1 > deployment [meant] we needed to take a > fundamental change in our approach in getting the > latest versions of Java out as soon as they are > available," said Marty Cagan, Netscape's vice > president of platforms. > > In essence, Netscape has recognized that if it > wants to survive, it needs to get back to its roots: > being a pure Internet company. > > "They had become a mile wide and an inch deep," > said Ted Schalder, an analyst at Forrester > Research Inc., in Cambridge, Mass. "They are > making very smart moves. They are going to be > able to focus their efforts on fewer areas." > > Sources said Netscape is also considering laying > off its entire Java Foundation Class team, a move > tempered by the fact that the new Java APIs are > nearly complete. However, if the layoffs occur, they > could impact the delivery of migration tools to port > Java applications written in Netscape's > now-defunct Internet Foundation Classes libraries. > > Sun officials said Netscape's plans will not affect > the delivery of Java. Sun will use its Activator > technology, a browser add-on due this year that will > enable Java applets to run on Internet Explorer and > Communicator, as a way to deliver new versions of > Java for Communicator, said officials of the > Mountain View company. > > Netscape officials declined to comment about the > reorganization before they announce the > company's fourth-quarter financial results this > week, but several users praised Netscape for > recognizing where its weaknesses lay. > > "This creates a more standardized browser and > also enables users to get access to better Java > technologies more quickly," said Glenn Newell, > senior engineering manager of intranet > technologies at National Semiconductor, in San > Jose, Calif. > > Despite the moves, Netscape still faces serious > challenges. With its client-based revenue stream > dried up, Netscape must now depend on its server > software to drive the business. > > But those efforts are already hitting bumps. > Directory Server 3.0, a critical part of SuiteSpot, is > more than three months late. Also delayed are the > SuiteSpot Calendar Server for Windows NT, > Message Express Server and the SuiteSpot > Hosting Edition. The delays could impact adoption > of Netscape's next-generation server suite, dubbed > Apollo, which is scheduled to ship in the third > quarter. Officials said Directory Server 3.0 will ship > within days. > > "If they hit that date [for delivering Directory Server > 3.0], then all will be well," said Jennifer Matheny, a > consultant at New York-based Coopers & Lybrand, > which is building a 60,000-seat intranet around > Directory Server for a Zurich, Switzerland, > customer. "But if they slip, then there will be > problems."