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Java Desktop System "for Half the Price of Microsoft,"

malebolgia on 31 December 2003 - 21:53 · 33 comments & 2823 views

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With Microsoft deciding to withdraw support for Windows 98 from December 23, Sun Microsystems has decided to hawk its desktop software — Java Desktop System — at a 50 per cent discount to any offer that Microsoft makes. According to Microsoft, the no-charge support for Windows 98 ended on July 1. Paid support will continue at $35 per incident until January 16, 2006, two years after phone support ends on January 16. The list also includes the popular Outlook 2000.

“We will agree to match any offer Microsoft puts on the table for desktop software — at 50 per cent of Microsoft's quoted offer. No matter what their offer, we'll agree to provide the software for half their price. If they offer Windows and Office for $200 per desktop, we'll offer them for $100. If they offer $50, our offer will be $25,” Sun Microsystems vice-president executive-software group Jonathan Schwartz said in an open letter.

Schwartz said the Java desktop, which runs on Linux, is available at one-tenth the price of a Microsoft desktop with ten times greater security. He further said Microsoft's decision to stop distributing and supporting older products is a deliberate attempt to coerce customers to upgrade to newer software. “It's a lesson in how a company with legendary market dominance can lose sight of customer priorities and force a transition on to a customer base already paralysed with viruses and security breaches,” Schwartz said in the letter.

News source: LinuxWorld


When additional changes were passed by Congress last Thanksgiving, only a few scattered outlets - like Wired News and oddly - Adult Video News - paying attention. While the original Patriot act allows the FBI to request data from your ISP with no court order or judicial oversight, these new changes, tucked away in the Intelligence Authorization Act for Fiscal Year 2004, broaden those powers further. The provisions expand the definition of "financial institution" and "financial transaction", allowing the FBI to monitor everything from Pawn Shops to your ISP with more authority.

Opponents claim that the already weakened system of checks and balances is being eroded futher, and the Fourth Amendment (protection against unreasonable searches and seizures) faces a serious threat. Supporters claim the changes are necessary to track the money funding terrorist operations and prevent further attacks. In between these two groups are usually those who don't care either way, since they're "not doing anything wrong".

The debate between these groups was overshadowed (intentionally or otherwise) by three days of Saddam capture video and elaborate (and fully 3D) explorations of the hole Iraq's one-time leader crawled out of. As usual with American media, all other news is often buried during major events - something all politicians have learned to use to their advantage to minimize controversy.

A few weeks later finds the changes being noticed by a few. This San Antonio Current article takes a look at the recent changes, and discussion is ripe over at Dave Farber's Interesting People mailing list (explore the thread index to see multiple and opposing opinions).

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(2 replies) #1 bluebsh on 31 Dec 2003 - 22:02
and when we run out of money because we are wasteing all of the money we have on hand developing software that can't make back the money in returns we'll go out of business

and don't give me that money is in support bs... you make less money in support then you do selling actual software...
#1.1 Penn Guinn on 31 Dec 2003 - 23:12
You're right, money isn't in support. It's not even in packaged software. It's in customization, 9 out of 10 times. If your software isn't in a company, you have nothing they are willing to have customized. This move by Sun is an "in" to get the customization work.
#1.2 Disco_Stu on 01 Jan 2004 - 22:16
Umm acutally No that won't be happening. The "R&D" costs for the Java Desktop and Star Office are minimal. They are basically just taking Open Source products and customizing them a bit. I'd be surprised if these two items accounted for more than 1% of Sun's R&D costs.

It does remain to be seen if Sun can transition from a High-End hardware and software dealer to a real backer of Linux and open source. Sun being able to keep its existing customers and show that it isn't just another "me-too" linux provider is the real long term challenge.

Sun may fail, but not because of the reason your suggesting.

Personally I think its a really smart move. Microsoft is under attack on all fronts now. Having a Solid OS and Office Suite avaiable for half or what MS charges complete with Support is a great carrot for businesses and governments. Either way consumers will benefit because eventually Microsoft will finally start having to make the same sweetheart deals for small businesses and consumers that they currently make with foreign governments and big businesses who threaten to to move to Linux.
(2 replies) #2 Beast_4thHM on 31 Dec 2003 - 22:03
ewww UGLY java interface....
#2.1 epple on 31 Dec 2003 - 22:05
You can say that again.
#2.2 Penn Guinn on 31 Dec 2003 - 22:43
It's not Java, it's Gnome.

Last edited by 44113 on 31 Dec 2003 - 23:18
(4 replies) #3 noll3095 on 31 Dec 2003 - 22:17
Yeah, Microsoft can afford to cut thier prices much longer than Sun can afford to undercut them. This should be interesting to watch.
#3.1 Penn Guinn on 31 Dec 2003 - 23:02
Well, no, Microsoft can't match Sun's deal.

Sun has said they will sell the whole package for $100 USD or 1/2 of whatever Microsoft offers. Can Microsoft afford to match $100 a seat? How about $50? ... $12.50?

Keep in mind that this is not for your parents, and it's not even for you as an individual. It's for corporations, so the economics are entirely different.

Sun does not have to pay or create most of what's in Sun Desktop for the same reason everyone else doesn't; the software is available for the cost of a download -- yet polished, including extra software, and corporate-level support.

Microsoft has to buy or write most of what they offer leaving them at a distinct economic disadvantage.

Is what Sun's offering Windows XP? No. Yet, from the comments on this forum it looks like most people here don't know what Sun is actually offering.

Last edited by 44113 on 31 Dec 2003 - 23:18
#3.2 frankchn on 01 Jan 2004 - 04:17
i heard somewhere that microsoft was offering thai computer manufacturers windows at USD 50 a piece (OEM)
#3.3 Penn Guinn on 01 Jan 2004 - 15:03
Well, they dropped it to about $37 for Windows + Office for Thai government use and then only for a "people's PC" project. This discount was not offered up-front, and only happened after Thiland drew the "we'll use Linux instead" card. Computerworld and other publications covered this a few months ago.

Microsoft can afford to loose money and not loose a sale at that scale. If everyone demanded the bundle at the $37 (or lower) price, would MS agree? Could they be profitable ... make it up on volume?
#3.4 Fowen on 05 Jan 2004 - 01:16
If Microsoft offered such a bundle.... do you think there would be as much piracy of Windows XP?
#4 hardgiant on 31 Dec 2003 - 22:40
Actually Java Desktop plus looking glass is really cool.
(1 reply) #5 daveoc64 on 31 Dec 2003 - 22:45
Sun is on my Do Not Install list with AOL and Real.
#5.1 McFly on 31 Dec 2003 - 23:01
Agreed. Sun needs to just go away, and take that whiny Scott McNealy with 'em
#6 Sushubh on 31 Dec 2003 - 23:57
cry baby?
(1 reply) #7 netstarman on 01 Jan 2004 - 00:03
Remember Microsoft has deeper pockets tha Sun, All the price slashing is doing nothing to people who are using windows already. Sun can slash there prices to the sun comes down, microsoft can bankrupt any company it sees fit. Microsoft hoarded away alot of money and made more when the good ol' government tried to seperate them. which would have been bad. Bill gates said one time "they can cut off the dragons head, it grows into two it becomes stronger". Sun can have there desktop price cuts it would catch a few people but not the 96% of the world thats already running windows even from the windows 3.0 time "there" running it .
#7.1 Penn Guinn on 01 Jan 2004 - 00:22
If Sun sells Java Desktop for $25 to corporations, they can do so profitably. Chances are, Sun will get only a few actual takers, so even if $12.50 is break-even for them they don't loose much.

In comparison, if Microsoft sells Windows + Office for $50 (or less) to one corporation, they will be pressured to do the same for other corporations. Having Sun say they will do it for 1/2 the price MS charges puts quite a bit of bargining power into the hands of many corporations. National governments are already demanding this level of discount if not deeper.

If this continues, will Microsoft's stockholders understand a drop in profitability even if MS had enough to bank roll the cuts?
(2 replies) #8 Capiora on 01 Jan 2004 - 01:25
you never guess what i just saw,

a Microsoft add on linuxworld
#8.1 Penn Guinn on 01 Jan 2004 - 01:39
QUOTE
a Microsoft add on linuxworld


You know what I say to that?

Thanks for the support!
#8.2 vetToxicfume on 01 Jan 2004 - 05:51
I don;t find that stranger than seeing MS adds on slashdot
Well, I guess it's the right target market for them
#9 Apollomus on 01 Jan 2004 - 01:30
Sun sucks - how much more pathetic are they gonna get?
#10 figgy on 01 Jan 2004 - 02:33
Famous last words from a dying company.
(3 replies) #11 frankchn on 01 Jan 2004 - 04:14
use Linux for god's sake... its FREE!!
#11.1 apa1exakis on 01 Jan 2004 - 05:29
it's free for a reason..
#11.2 werejag on 01 Jan 2004 - 06:19
yeah we know why because trillions of programmers produce the software under gpl and are dedicated to producing software not their pocket books like microsoft does.

#11.3 Penn Guinn on 01 Jan 2004 - 15:10
QUOTE
it's free for a reason..


I love comments like this! Truely quaint!
#12 Azadre on 01 Jan 2004 - 06:01
Sun pwns w00t
(3 replies) #13 Rambo2000 on 01 Jan 2004 - 14:20
This is ultimately why Microsoft can't compete with Linux in the long run, Linux will keep getting better and they will keep under cutting the price of Microsoft, theres many companies in Linux so and it's a lot cheaper to make Linux then Windows so Linux can keep doing this to Microsoft all the time, this will harm Microsoft in the long run and we'll see that when there share price plummets, when that happens it's hard to say, anytime within the next 5 years.
#13.1 Penn Guinn on 01 Jan 2004 - 15:31
Computers -- and operating systems -- are at the saturation point; they are everywhere except in unreleased or uninvented "embeded" devices. There will be sector-specifc "booms", and "busts" though for the most part it will be steady and level.

Microsoft's massive, always increasing, profitability is largely over and I don't see them getting the embedded device market at all with the exception of the pocket PC; embedded now means "any appropriate no-per-unit charge OS" (note: not necessarily Linux and not necessarily without any charge for the OS). The drop in price from $15/unit to $3/unit for WinCE is a reaction to that market change.

As for Linux eating MS's lunch elsewhere, I don't think it will happen. Sure, Linux will be one of the booms though Microsoft's products will likely still be in heavy use 5 and even 10 years from now. Expect many many work-alikes to emerge -- think "Wordperfect mode in MS Word" as a historic example. People are conservitive, and get scared if anything changes -- and computer software is in constant flux enough.

Microsoft, short of lawsuits and government regulations, can't harm Linux or any software that is developed partially outside of a corporate financial cycle. I think that's why MS has changed tactics because they realize they can't crush these 'upstarts' through the usual tactics.
#13.2 shao on 01 Jan 2004 - 23:22
i personally love how a lot of linux desktop apps hoping to steal some of microsoft's market dominance basically emulate it as much as they can to the point where they are making an almost identical application, both in terms of functionality and look/feel. The amount of people that copied the look/feel of windowsXP icons and colour schemes in the past two years is also laughable.. yet apparently microsoft aren't innovators, and sun/ java/ linux truely is. Is it april 1st already?
You only have to take one look at the java desktop to count the number of places where sun are DIRECTLY ripping ideas, terminology, design practices, and functionality straight out of microsoft applications and platforms. Isn't this the kind of practice which would cause sun to go running to the DoJ if the tables were turned?

So, sun comes along and, with it's usual lack of understanding offers a desktop solution, which i can only assume it is geating towards non-tech savvy users running 6 year old hardware platforms. With the exception of star office, i have yet to see a piece of sun software which even nearly hits the same softspot of usability that windows 98 has, let alone windows XP, and i'm including their god-awful java virtual machine in that judgement. Sun are, and have been for far too long overly complacent about microsofts market share, because like it or not microsoft have better, more innovative products which fulfull the users' needs.

As for cutting off of FREE-support for a 6 year old operating system (and then only charging a nominal cost for extended support).. well, since when were sun ever competitive in ANY kind of support / maintenance it has offered?? Infact you only have to visit sun's support pages to see that a lot of the subsites are immediately locked off to those not under support contracts, or fee payers. ROFL, those sun guys are truely funny... in a f&^ked up hypocritical way of course.
#13.3 Rambo2000 on 02 Jan 2004 - 13:51
the Computer market isn't at a saturated point just yet, theres still many developing nations to make sure that doesn't happen.

Linux will win because of the market it's self, there is no way on earth that governments and big companies are going to let one company like Microsoft have as much power in something as important as the OS is, more so with how big the computer will really be in our lives in the future, Linux will win because of flexibility and because of trust, Microsoft can never beat Linux on those two things, the PC became what it is today because of openness and no real control, the same thing for the internet, would the PC and internet be what it is today if one or two companies controlled it?, very unlikely.

It will take time for people to move over from Windows to Linux, more so on the desktop, but I expect it to happen, more so when theres a standard hardware and software installer and when more people have high speed internet, two things Linux really needs to take off on a mass scale.

Shao, they can copy all they want, Linux offers pretty much the same thing for less, and beside, Microsoft copy of others a lot as well, and you forget, Linux needs to copy a lot of Windows because thats what most people know and people wouldn't move if something is too different.

Microsoft is facing a battle against many big and small companies and governments around the world, theres no way Microsoft can win this one apart from in the US market, but even then, it's not in the US governments interest to let that happen as it would put the US computer market at a disadvantage to the rest of the world.

Look at the PC in the early 80's, did anyone think that would be what it is today?, we would of all laughed our arses off if anyone said it would be where it is now when there was so many other better computers at the time, what made the PC the ultimate computer was it's openness to competitions in it's own market, trust and because there was many companies battle-ling it out to make better parts for it, Linux as got all of that and even better still, Linux is almost free, just like with the PC we thought it would never be where it is today, most people think the same about Linux.
(1 reply) #14 ZTrang on 02 Jan 2004 - 22:00
Linux seems doomed to failure as a product for the masses because of one reason: lack of market penetration. With the exception of a few feeble offerings (Java's new OS for one, Walmart's attempt to sell cheap systems with Linux another), Linux is not widely waved in people's faces. When I go to Bestbuy or CompUSA or somewhere else like that, I never see any Linux signs or sales (it is sold at CompUSA, but my point is there are no advertisements for it). On the other hand, there are advertisements for Microsoft products and "solutions" everywhere, most new computers boast that they are loaded with the Windows operating system and possibly even Office, and almost all software sports compatibility with Windows. Most average computer users would probably think of Linux as nothing more than an obscure computer term, because they haven't been exposed to it. And I don't think that is going to change. Since Linux is not a concentrated effort (sure, it develops quickly, but there is no market objective beyond the vague "dominate the market with open-source software," and this can quickly lead to conflicting goals), and there isn't a lot of money available for marketing and such, people won't be exposed to Linux and it won't become popular. Sure, the technical elite can use it and laud it as much as they want, but would that get your non-tech savvy grandparents to use it? No, of course not.

Also, another point, Linux is not compatible with most software today without emulators (which themselves have problems and often don't work), and that certainly doesn't encourage users to switch platforms. It is much easier and more profitable for companies to continue writing programs for the same platform that they have experience with, and not rewrite their programs from scratch for a new OS (especially since they can't make nearly as much money doing it). With open-source, the company tends to lose, and so the momentum for software development will continue to be with the Microsoft products for a long time yet, with Linux holding only a niche market.

When most people buy a product, they look for a name, which suggests a reputation as well as support and security. Microsoft can provide this; Linux cannot (although I may be mistaken, I don't think there is a Linux tech support to call). They don't want a product that requires huge amounts of user time to get working and doesn't work with most of their existing software. Microsoft works, and works well in most cases (the instability of Windows is mostly a thing of the past, and yes, I wholeheardedly believe this, having used Windows XP for several years and having it installed on four computers). It is definitely overpriced, but if Microsoft feels sufficiently threatened by Linux to lower prices, then even that problem could be solved.

To finish up, I'd rather pay too much for a working, easily usable, widely-used, and compatible product with good technical support than something like Linux, which is free, and that's about it. If you want to fiddle with code and do strange things with your OS and save a few bucks, but I'd rather be able to come home with a new game or piece of software, load it up, and be done with it.
#14.1 Rambo2000 on 03 Jan 2004 - 16:29
ZTrang, you are missing the point, nothing takes too much market share early on, it builds up, advertisement will come along in about 2 or 3 years but for now it's not ready for that, the advertisement we are talking about will be like the Intel ones we get on many computer adverts, think about it, it's very likely that Dell and many others will create there own distros of Linux to give with there PC's as it's advertisement for the company, can you imaging the advertisement Linux will get when that happens on a mass scale?, Windows as already lost to Linux, now it's just a matter of time for people to realise that.

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