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: John Carragher who wrote (15249)	4/7/1999 8:09:00 AM
From: John Carragher	Read Replies (1) \| Respond to of 64865

ow Jones Newswires Sun Microsystems Sees AOL Tie-Up Boosting Indus Position Dow Jones Newswires SINGAPORE -- U.S.-based Sun Microsystems Inc. (SUNW) sees its strategic alliance with America Online Inc. (AOL) bolstering its position as a leading player in the growing electronic commerce industry, a senior company official said Wednesday. In Singapore on Wednesday, Sun's chief strategic officer, William Raduchel, told Dow Jones Newswires that the collaboration, referred to as the Sun-Netscape alliance, will allow Sun and AOL to offer customers a "one-stop answer to all their e-commerce needs." "This is a very compelling proposition to people," he said. The alliance will offer customers' enabling software for their electronic commerce systems, while AOL will provide content and Sun will provide a platform and support services. But Raduchel said consumers, however, won't be obliged to use products and services from all three entities, but can choose to use any combination of the three. He said electronic commerce is expected to represent 80% of total commercial transactions by the year 2010. The official described the alliance, which was announced last year, as a "virtual company," in which more than 2,000 people from Sun and AOL will dedicate their time to the alliance. But he said that although the alliance has no equity interest, Sun has agreed to pay AOL a guaranteed amount "in excess of US$300 million" and fees for each of the three years of the alliance. He declined to give overall revenue or profit targets for the alliance, saying only that Sun expected the alliance to be "commercially successful." He also said AOL stands to lower its costs from the alliance since some research and development expenditures for new products would now be borne by the alliance. Sun Microsystems sells hardware, software and services for establishing Intranets and expanding the Internet.