Tuesday, October 04, 2005

Take that Mr. Gates!

Google, Sun in Challenge to Microsoft

By MATTHEW FORDAHL, AP Technology Writer
2 minutes ago

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.

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.

OpenOffice, an offshoot of Sun's StarOffice, is a leading challenger to the ubiquitous Office suite, a major cash cow for Microsoft. Both offer a word processor and spreadsheet among other applications.

"OpenOffice is already an alternative, but if Google gets involved in supporting it, that could be the thing that puts it over the top," said Forrester Research analyst John R. Rymer.

Both Sun and Google share the common root of Stanford University. Sun — short for Stanford University Network — was founded there in the 1980s, while Google got its start there in the 1990s. And one of Sun's co-founders, Andy Bechtolsheim, gave Google's Larry Page and Sergey Brin $100,000 in 1998 to incorporate their young search company.

Sun has lost $4.5 billion since June 2001, although the Santa Clara, Calif.-based company has recently started to show signs of recovery.

While Sun has been struggling, Google's fortunes have steadily risen. Though best known as a search engine, it now offers free e-mail, maps, instant messaging, video and last week announced it wants to provide free Wi-Fi to San Francisco.

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