The Treaty of Versailles was probably less obvious. Sun’s agreement with Microsoft on Friday further doomed Sun Microsystems. Sure Scott and Steve can be on stage together all they like and exchange hockey jerseys declaring “peace“, but it really was Sun giving up a worthless front in the war for its survival.
Microsoft has never really been a super threat to Sun. Maybe recently with Windows Server 2003, but in the last 20 years of Scott calling Bill Darth Vader or making fun of the fact that Bill Dropped out of Harvard, Microsoft was the boy in Redmond that everyone in the Valley loved to hate.
So while Sun was announcing layoffs and blackmailing Microsoft for 1.8 billion in the same day, they pulled off a great coup. Sensing that settling with Sun would help Microsoft end its legal problems (Sun also said the settlement satisfies the objectives the company was pursuing in the European Union actions pending against Microsoft.), Sun used Bill and Co for a desperate influx of cash. Too bad it is too little to late.
Even after cutting almost 10% of its workforce and doing a management shakeup, Sun is still on life support. Linux is really Public Enemy Number 1 for Sun. Sun has no Linux strategy and Linux is a technology that could render Sun obsolete. Linux is based off Unix and makes it obsolete since it is more modern and cheaper (Linux is not free). Sun sells Unix. Linux runs on low end machines. Sun’s Unix does not. Sun makes lots of money selling very expensive hardware. That business is getting worse and worse by the day.
Not to mention IBM’s recent love-fest with Linux and more recent attacks on Sun. This makes IBM public enemy #2 for Sun.
Maybe Scott should sue Linux and IBM too…After over 7 years of using the American and European legal systems and costing the taxpayers billions, Sun got a few month operating cash out of Microsoft. I hope you use it wisely.
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