Tuesday, June 01, 2004

WSJ.com - Sun to Unveil Plan Aimed at Linux

WSJ.com - Sun to Unveil Plan Aimed at Linux "Jonathan Schwartz, a former software chief at Sun who was named the company's president and chief operating officer earlier this year, argues that Sun has a distinct advantage over companies that don't make their own operating systems for low-end servers. While pricing Solaris aggressively -- either as a separate product, or bundled with servers -- Sun can still derive additional revenue from the software to counteract the effect of falling hardware prices, he said
Mr. Schwartz, who is describing the strategy at a customer gathering this week in Shanghai, predicts that recurring revenue from software and services could allow Sun to offer companies hardware on a subscription basis or for free -- a bit like the way cellphone services subsidize the price of handsets.
"My belief is in five years, customers will no longer be paying for hardware -- it will be free," Mr. Schwartz said."
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