Microsoft and Sun Microsystems : Sleeping with the Enemy?


Code : COM0032

Year :

Industry : Information Technology and IT Enabled Services

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Microsoft and Sun had an antagonistic relationship for almost two decades. But in a desperate attempt to leave past hostilities behind and build new bridges of friendship, the two sides signed an agreement in early April 2004.

As per the deal, Microsoft agreed to pay Sun nearly $2 billion to settle Sun's pending antitrust lawsuit against it, resolve patent issues and as advance payment towards certain licensing royalties.

However, while the settlement had been inspired by several common problems faced by the two companies and aimed at peace, some believed that the truce would be short lived.

Pedagogical Objectives:

  • To discuss the issues that led to the coming together of the two rivals and the potential issues that might break the truce.
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    Keywords : Microsoft, Inc;Mergers, Acquisitions, Alliances Case Study; Sun Microsystems; Scott McNealy; Steven Ballmer; Java 2 Enterprise Edition (J2EE); Application development environment; Open source revolution; Sun's Java virtual machine; C#, .net, visual C++; Web services development platform; Department of Justice; Bundling software; Monopoly; Internet browser; Strategy

    Contents :
    Battle for Standards
    Common Customers, Common Fate...
    Microsoft: Trials and Tribulations...

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