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Sun eyes application server market

NTUsEr   on 21 May 2002 - 20:37 · 4 comments & 105 views

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Sun Microsystems is expected to announce Wednesday that it is bundling its application server software into its Solaris operating system, a move that could change the competitive landscape in the lucrative application server software market.

With the move, Sun is trying to chip away at the dominance of BEA Systems and IBM in the $2 billion-a-year application server market. The company will in essence give away its Java application server as part of the upcoming Solaris 9 operating system, sources told CNET News.com.

Sun is expected to make the announcement Wednesday when company executives, including Chief Operating Officer Ed Zander, launch the latest version of the company's Unix operating system, sources said.

Application server software is technology that runs e-business and other Web site transactions. It's essential back-end software that has become a standard piece of e-business infrastructure.

News source: Cnet


Switching Tool Offered

"MSN is targeting AOL because that's where all the subscribers are," says Dylan Brooks, a senior analyst with Jupiter Media Metrix. AOL users are the least likely to change ISPs--partly because AOL doesn't make it easy to switch. Brooks notes the irony: MSN's cancellation process isn't getting easier, while it makes AOL's process 'hassle free'. He says the dirty little secret ISPs share is that none wants to make it easy to cancel service.

Migration is handled via a three-step Switching Tool from TrueSwitch, a Microsoft partner. TrueSwitch hosts the tool, which guides customers through a Web-based questionnaire coupled with a Microsoft Active-X control to migrate former AOL account data.

TrueSwitch locates AOL data on a user's PC and moves it to MSN's Web portal for Web-based access. TrueSwitch also will notify AOL Billing by e-mail or fax when AOL customers terminate their accounts. The switching tool is the next generation of its existing migration option, which helped AOL users "walk through" the process.

MSN charges $21.95 a month for unlimited dial-up access, and between $39.95 and $49.95 for high-speed Internet access. AOL charges $23.90 a month for its dial-up Internet access.

MSN Makes Headway

As the number two ISP, MSN shows signs of gaining on AOL. MSN says its membership has grown by 4 million over past year to 8 million. Meanwhile, AOL reports a membership of 34 million, with new customers signing on at a slowing pace. Number three provider Earthlink has 4.5 million subscribers, according to Jupiter Media Metrix.

Both MSN and AOL have paid dearly for market share in their bitter war for the loyalty of average online consumers.

AOL reports 6.5 million new members signed on with it over the past year, thanks to promotions and free trials. Morgan Stanley analysts estimate the percentage of nonpaying AOL subscribers jumped to 15 percent in 2002 from 7 percent in 2001.

Microsoft has spent heavily to acquire new members and is showing signs of belt tightening. Last year, it discontinued a $400 rebate program after conceding it cost too much to operate. A current MSN promotion offers new subscribers $50 "cash back" after they pay the bill for three months.

MSN is also offering new broadband customers free activation and a free installation kit, including a DSL modem, when they sign up for a year of service.


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