Sun's Schwartz stands by firm's free software
Sun Microsystems Inc Chief Executive Officer Jonathan Schwartz, criticized by analysts for giving away the company's software, defended the plan, saying it will boost sales of server computers needed to operate the programs.
"There was an era that is coming to an end in which a premium was paid for proprietary software," he said. "Free and open solutions were looked at as a bit of a sideshow."
Sun, the fourth-largest server maker, is seeking ways to bolster revenue growth after a 30 percent drop in the stock in the past year. Schwartz closed the $1 billion purchase of free software maker MySQL AB yesterday and has pushed Sun to give away its Solaris and Java programs, as well as designs for its UltraSparc chips.
The MySQL acquisition, which carried a premium price to persuade executives to forgo an initial public offering, will broaden Sun's customer base, Schwartz said.
MySQL provides database software for free, making money on maintenance. Sun intends to sell servers and storage to MySQL users, as well as service contracts, he said.
"You can't download MySQL into air," Schwartz said. "A hundred percent of MySQL users buy hardware."
Sun, down from a 52-week high of $26.04 in March 2007, fell 2 cents to $17.52 on Tuesday in NASDAQ Stock Market trading.
Schwartz, who took over in April 2006, cut about 2,750 workers to reverse losses at Santa Clara, California-based Sun. The computer maker has now posted five straight quarters of profits.
Agencies
(China Daily 02/28/2008 page17)
