December 03, 2003

Sun pushes Java software with new pricing

Project Rave development environment gets officially named Java Studio Creator

Sun Microsystems Inc. released two bundled packages of Java software on Wednesday -- one for desktops and one for servers -- along with pricing moves intended to bolster its position in the Java software market.

Sun's Java Enterprise System, a package of tightly bundled server software, is available now for $100 per employee. It includes Sun's application server, directory server, portal server and around a dozen or so other products. It was announced in September and is offered as an alternative to buying the products separately.

Sun also released its Java Desktop System, a suite of open source products designed to compete with Microsoft Corp.'s Windows and Office software. The desktop system includes a version of Linux, the Mozilla Web browser, Sun's StarOffice productivity suite and several other products. It is also priced at $100 per employee, or $50 for customers who also buy the Enterprise System.

Hoping to spur wider use of its software, Sun said Wednesday that businesses with less than 100 employees can download the Java Enterprise System for free, minus any services and technical support. In addition, it announced pricing of $1,000 per processor for embedded OEMs (original equipment makers) and independent software vendors, who it hopes will bundle the software with their products.

On the desktop side, businesses can get the Java Desktop System for half the list price if they buy it before June 2 next year, Sun said.

The announcements were made at a press conference in Berlin and are part of Sun's quarterly release of new products and upgrades. Along with the software news, which also includes updates to Solaris, the company announced new hardware, including its first server based on a processor from Advanced Micro Devices Inc. (AMD). 

Sun has reported several quarters of declining revenue, battered by an ongoing slump in sales of its higher-end Unix servers. As part of a turnaround strategy it has been promoting its software more heavily as a way of generating new business. The products compete with offerings from IBM Corp., Microsoft, BEA Systems Inc., Oracle Corp. and others.

Sun says its Java Enterprise System is less complex to use and maintain than software from other vendors, in part because the products have been tightly integrated and are upgraded all together each quarter. It also says businesses can save money under the per employee pricing system, which is based on a company's total headcount as reported in regulatory filings.

While the offer may sound compelling, the test will be how well Sun executes on its plan, analysts said. Until the Java Enterprise System has been put through its paces by customers it's too early to say if it will live up to Sun's promises, said Stephen O'Grady, a senior analyst with the consulting company RedMonk, in Bath, Maine.

"It looks like a good offering and it's something that's been getting them a lot of attention, but whether that will translate into sales remains to be seen. Our general line is that a lot depends on how well Sun executes, how well the software actually performs," he said.

Sun didn't manage to get all of its server products into the first release. Its integration server won't be included until the fifth release, according to a roadmap on Sun's Web site, which could be as much as a year away. The high-end version of its application server, which includes clustering and other advanced features, also isn't included yet.

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