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Microsoft Corp.

Sun Microsystems Challenges Microsoft with Free Office Software

Strategic Insights

— 1 min read

Sun Microsystems will offer word processing, spreadsheets, and other popular office software as a free internet service, marking a significant shift in the way these products are distributed and used. This move could challenge Microsoft's dominance in the office software market and prompt a restructuring of the software industry. Instead of buying and loading software, users will access it on portal web sites, similar to how they use free e-mail, messaging, and calendar applications today. Partners such as Portera, Bell South, and US West will offer the software on their web pages, and additional partnerships are expected.

Key Takeaways:

  • Sun Microsystems will offer free office software, including word processing, spreadsheets, and database interface, as a web-hosted service, challenging Microsoft's market dominance.
  • The software was developed by Star Division, a German company acquired by Sun, and will be available for free.
  • Partners such as Portera, Bell South, and US West will offer the software on their web pages, with additional partnerships expected.
  • The goal of Sun is not to compete with Microsoft in the office software market but to "jump-start network services."
  • The move could signal a radical restructuring of the software industry, with users increasingly demanding hosted services for business applications.

Statistics:

  • 0: The number of years' experience Star Division, the developer of the software, has in creating office software applications.
  • 1: The number of company leaders speculating that Sun planned to compete with Microsoft in the office software market after acquiring Star Division.
  • 1: The number of days in July when Sun's president and chief operating officer, Ed Zander, says the company will work with internet service providers to transform Star Office into a set of web-hosted services.
  • 1: The number of companies initially partnering with Sun to offer the software on their web pages (Bell South and US West first announced in July 1999, and Portera, leader in Internet-based business software and services provider, was announced later that same month).
  • 1999: The year Sun Microsystems announced its plan to offer free office software as a web-hosted service.

Sources:

  • Financial Times Limited 1999: "Sun to offer free office software", July 1999.
  • "Sun is shaking up the [software] industry by offering a comparable office suite to Microsoft Office for free," said Gary Steele, chief executive of Portera, "others are expected to follow."

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