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Technology Stocks : Wintel's Demise
MSFT 245.47-0.8%3:59 PM EST

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To: Michael Olin who wrote (318)10/8/1997 7:14:00 PM
From: jim kelley   of 328
Re: JAVA lawsuit

McNealy has been on Gate's case since 1991. At that time the main issues were UNIX versus Windows. McNealy has been very concious of the fact that MSFT is a cash machine unlike SUNW.

Now that the war between UNIX and Windows is over and Windows NT shipments are zooming ahead of UNIX the front has shifted to JAVA.

SUNW has refused to release JAVA to the standards organization and wants instead to create a franchise rubber stamped by the standards organization. This has been rejected by the standards organization. Now, SUNW wants to create its own standards by licensing and policing the industry.

SUNW sues MSFT to force it to distribute its "pure JAVA" and create an exclusive franchise for SUNW.

What is likely to happen now?

This lawsuit frees MSFT to issue its own version of JAVA maybe we can call it "EXPRESSO" to the industry. This EXPRESSO will do everything that JAVA does and better. In addition, it will run JAVA compliant applications. So all MSFT has to do is to change the names of its components and libraries and it will have the most users because of its installed base.

I think it is perfectly reasonable for MSFT not to distribute JAVA at all.
Why should MSFT be compelled to establish a franchise for a company which has been attacking it for 6 years in every way that it can?

IMO, if positions were reversed McNealy would be much more a tyrant than Gates. SUNW has dirty hands.

IMO, this matter will be settled in the market place and not in the courts.

-Jim K.
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