To: Sig who wrote (82192 ) 11/24/1998 5:09:00 PM From: jhg_in_kc Read Replies (1) | Respond to of 176387
strange bedfellows.Dell impact? AOL/Sun/CPQ to build Internet device, SAN FRANCISCO (Wired) - Sun Microsystems Inc. and America Online Inc. are planning to build an Internet device -- possibly a set-top box to link televisions to the Net. And industry sources said Compaq could be involved in discussions about manufacturing the hardware. In a statement released Monday, AOL confirmed it was in discussions with Sun Microsystems regarding a possible development and marketing agreement for new Internet devices. The devices would involve Netscape products, according to the statement. Sun and AOL declined to elaborate on what the device would do, but industry sources said the companies were looking at television's convergence with personal computing. A set-top box was the most likely candidate. ''For Compaq, it makes a lot of sense, because it would make them less dependent on Windows,'' said a source inside Sun who asked not to be named. ''AOL could bring huge numbers of people to Compaq. It's a strong combination.'' Sun (Nasdaq: SUNW - news) is trying to position its PersonalJava programming language as a standard interface for Internet devices, such as set-top boxes and other consumer peripherals. ''Sun is not in the business of building consumer devices,'' the Sun source said. ''Our overall strategy is to provide the underlying technology.'' Eric Brown of Forrester Research said building a set-top box would benefit all three companies and make good use of the Netscape technology AOL has said it is attempting to acquire. ''AOL is looking forward to the next revenue-model transactions,'' Brown said. ''It's not so much about content, it's about commerce. The company wants to become Mall of America Online.'' Brown said a significant portion of AOL's (NYSE: AOL - news) revenue comes from ad banners, which are becoming increasingly tied to sales. If AOL wants to maintain that revenue stream, he said it has to have a way to sell products. Netscape's Enterprise Server and CommerceXpert, a suite of e-commerce tools and applications, would provide the backend, according to Brown. A set-top box and AOL's browser would likely provide the front end. ''And for Compaq, manufacturing peripherals for TVs is the next great thing,'' Brown said. (Reuters/Wired) Earlier Stories •Microsoft to comply with Java ruling, may appeal (November 23) ------------------------------------------------------------------------ Mon Nov 23 | Fri Nov 20 | Thu Nov 19 | Wed Nov 18 | Tue Nov 17 Index | Top Stories | Business | Tech | Politics | World | Local | Entertainment | Sports | Science | Health