Google, Sun in Challenge to Microsoft

MOUNTAIN VIEW, Calif. - Google Inc. took a step toward challenging Microsoft Corp.'s dominance of computer software with the announcement Tuesday of a collaboration agreement with Sun Microsystems Inc.
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The move could lead to Google offering next-generation word processing, spreadsheet and collaboration tools that would take on Microsoft's industry-leading Office suite of software.

But for now its significance may be mostly as a symbolic shot across Microsoft's bow, signaling Google's intention of attacking the world's biggest software company head on.

Aside from a plan to offer Google's toolbar program with downloads of Java software, details of the agreement were scant. Though it could lead to a new pipeline for Sun software to millions of computers, there was no firm commitment.

Some downplayed the announcement as a publicity stunt that probably would not have occurred had Google CEO Eric Schmidt not spent 14 years of his career working at Sun under CEO Scott McNealy.

The alliance would be a boon for Sun if Google had promised to buy some of the company's sophisticated computers, but no ironclad commitments were announced.

Google could try to bid for AOL to pre-empt a Microsoft takeover and protect the $380m in revenue Google gets from its biggest partner, according to an analyst.

Lauren Rich Fine, an analyst at Merrill Lynch, wrote in a Friday report on the implications of an AOL-Microsoft Network deal: "We believe it is entirely possible that Google could consider making a bid for AOL as well. This would certainly protect Google's revenues from AOL as well as enable Google to keep 100 per cent of the search advertising revenues as well as gain a significant amount of content."

The New York Times reported on Thursday that Microsoft was in talks with AOL's parent Time Warner on merging AOL with MSN and other options as a way to counter the serious competitive threat Google poses in the portal and search market.

The Wall Street Journal has reported that AOL may be considering switching its search engine from Google to MSN, which could cut Google's earnings per share by between five and 10 per cent, the report said. AOL generated about 12 per cent of Google's revenues in 2004, or $382m.

Google began providing search services for AOL in 2002, replacing Overture, which was acquired by Yahoo!. In 2003, AOL and Google broadened their agreement. Google pays AOL every time someone clicks on one of its sponsored links and lets advertisers bid for the AOL search result placements for specific keywords users enter.

The Merrill Lynch note came within days after Google raised $4.1bn in a secondary stock offering.

A Time Warner representative declined to comment, and an AOL representative did not immediately return a call seeking comment for this story.

Google also declined to comment.

If it wasn't Sun, Runescape wouldn't exsits

I love open office...its free Very Happy...well...for many and most so is ms office, therese no denying such (Rolling Eyes usualy comes with your computer when you buy it), but open office is way better and, googles sw33t, sun is sw33t...after all, if it werent for the sun, we freeze to death *brrr* lol

can someone explain this for me? plz?