Sun Microsystems' Summer of Ups and Downs

Strategic Insights -

Sun Microsystems' stock has seen a significant rise to $76.8 from under $20 a year ago, amidst a tumultuous summer of announcements, lawsuits, and strategic decisions. The company has dropped the PicoJava and MicroJava chips while announcing the MAJC Java multimedia chip successor. Sun has also won a key victory in its lawsuit against Microsoft, although the case remains up in the air. Additionally, Sun has signed up Hewlett-Packard to port Java 3D to HP-UX, and has junked JavaOS for business, citing the Internet's ability to provide software as a reason for its failure.

Key Takeaways:

  • Sun Microsystems' stock price has risen to $76.8 from under $20 a year ago.
  • The company has dropped the PicoJava and MicroJava chips, and announced the MAJC Java multimedia chip successor.
  • Sun has won a key victory in its lawsuit against Microsoft, although the case remains up in the air.
  • Microsoft is claiming that the case is a contract dispute, while Sun is insisting that it's about copyright infringement.
  • The Ninth Circuit Court of Appeals affirmed Judge Whyte's determination that Sun is likely to prevail on its claim, but asked for more clarification on some points.
  • Sun has signed up Hewlett-Packard to port Java 3D to HP-UX, expanding the operating system's compatibility.
  • Java 3D's licensing deal with HP may not have significant impact unless you own an HP server running HP-UX.
  • Sun and IBM have announced the end of JavaOS for business, citing the Internet's ability to provide software as a reason for its failure.
  • Lisa Carnochan, Sun's product line manager, has stated that the JavaOS failure was actually a victory due to the Internet providing alternative software.

Statistics:

  • Sun Microsystems' stock price has risen to $76.8 from under $20 a year ago. (Source: author's research)
  • The PicoJava and MicroJava chips have been dropped by Sun Microsystems. (Source: author's research)
  • Microsoft's appeal of Judge Whyte's order was made to the Ninth Circuit Court of Appeals in January 1999. (Source: Sun Microsystems' statement)
  • The Ninth Circuit Court of Appeals affirmed Judge Whyte's determination that Sun is likely to prevail on its claim, but asked for more clarification on some points. (Source: Sun Microsystems' statement)
  • Java 3D is cross-platform compatible, appealing to developers based on its platform independence. (Source: The Peddie Report)
  • Hewlett-Packard's strong customer base in scientific visualization and MCAD will benefit from Java 3D's licensing deal. (Source: The Peddie Report)
  • Sun Microsystems' JavaOS was a joint IBM/Sun development and marketing effort launched in April 1998. (Source: author's research)
  • Lisa Carnochan, Sun's product line manager, stated that the JavaOS failure was actually a victory due to the Internet providing alternative software. (Source: author's research)

Sources:

  • Sun Microsystems, 415/960-1300
  • Microsoft, 425/882-8080
  • Forte Software, 510/869-3400
  • Hewlett-Packard, 408/246-4300
  • IBM, 914/765-1900
  • The Peddie Report
  • Sun Microsystems' statement on the lawsuit against Microsoft
  • Author's research