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Microsoft Corp.

Sun Scores Major Coup in Battle Against Microsoft Over Cable TV Set-Top Boxes

Strategic Insights

— 1 min read

Sun Microsystems Inc. has outmaneuvered Microsoft Corp. in the battle for control of cable TV set-top boxes, reaching a deal with Tele-Communications Inc. to include its Java software in up to 10 million new digital set-top boxes over the next three years. This move threatens Microsoft's ambitions to expand its dominance of computer industry software into cable television, where it is competing against Sun's Java programming language. Sun's Java is intended to enable developers to write software that runs on all operating systems, not just Windows, and the cable industry has expressed concerns that Microsoft will dominate the technology that brings the next generation of programming to millions of U.S. TV viewers.

Key Takeaways:

  • Sun Microsystems Inc. has reached a deal with Tele-Communications Inc. to include its Java software in up to 10 million new digital set-top boxes over the next three years.
  • The inclusion of Sun's Java software threatens Microsoft's ambitions to expand its dominance of computer industry software into cable television.
  • Sun's Java programming language is intended to enable developers to write software that runs on all operating systems, not just Windows.
  • The cable industry has expressed concerns that Microsoft will come to dominate the technology that brings the next generation of programming to millions of U.S. TV viewers.
  • Microsoft was reportedly trying to stop TCI from including Sun's Java in its set-top boxes.
  • Microsoft invested $1 billion in cable giant Comcast Corp. last year.
  • David Smith, vice president of Internet strategy at Gartner Group, referred to the deal as "a coup for Sun" and "a relatively major deal".
  • A Microsoft spokesman declined to comment on the deal.

Statistics:

  • Up to 10 million new digital set-top boxes will include Sun's Java software over the next three years.
  • $1 billion was invested in cable giant Comcast Corp. by Microsoft last year.

Sources:

  • The Associated Press
  • Sun Microsystems Inc.
  • Tele-Communications Inc.
  • Microsoft Corp.
  • Gartner Group
  • Stamford Advocate

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