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Suns' innovative pricing. Will it work?

http://www.sun.com/smi/Press/sunflash/2004-06/sunflash.20040601.2.html

Government entities such as countries, provinces, states and cities in less developed and least developed countries and regions can now take advantage of this special licensing offer for the Sun Java Enterprise System. Pricing ranges from USD $0.33 to $1.95 per citizen per year, and is determined based on two factors: the number of citizens in the respective government entity and the stage of development of the country as defined by the United Nations' Department of Economic and Social Affairs classification(http://www.un.org/esa/population/publications/wpp2002/wpp2002wc.htm). This is the first time a company has offered governments around the world a complete network infrastructure software system that assists their populations in bridging the technological divide.

Karthik
Wednesday, June 02, 2004

They are basing it on the UN Development index. Very radical. Something like this has never ever been tried.
Maybe it will pull them out of the red?.

But the main hurdles are that in developing countries, work is usually done by bribes or cronyism. Cost is not too much of a factor unless people start whining or its simply too much. Piracy is another problem they need to contend with.

Karthik
Wednesday, June 02, 2004

Sun has completely lost their mind.  This is like bringing free toilet paper to a developing nation with a sewage disposal problem and thinking you're doing them a favor.

Scott McPealy
Wednesday, June 02, 2004

<<Sun has completely lost their mind>>

I had put a couple of flames against SUN on JOS about the same point. But its probably because they have no other alternative here. Either go on with Solaris and face certain doom, or light up the world with your antics and memorably go down - which also includes a chance at success .

They have wisely chosen the second course.  Unfortunately, i simply cant imagine any developing country choosing Solaris. Impossible. The java desktop is a better bet.

Karthik
Wednesday, June 02, 2004

Methinks Sun shareholders would be better served if they liquidated the company. Mr. McNealy seems determined to go down in a "blaze of glory". It must be a lot of fun betting with other peoples' money.

Rob VH
Wednesday, June 02, 2004

According to news.com ( http://tinyurl.com/2acvs ), Sun is getting ready to open up the source code for Solaris.

For fiscal year 2005, they are hoping to generate the majority of their revenue from a "lemonade stand".

Benji Smith
Wednesday, June 02, 2004

What I found interesting was this quote in a Reruters story ( http://www.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=5304507&src=rss/technologyNews&section=news )

""In our world, you will subscribe to the software and the hardware is free," Schwartz said, who was named to his post almost six weeks ago. "Directionally, our expectation is that in fiscal 2005 you're going to see a rapid departure from selling hardware, software and services apart."

Schwartz isn't alone in saying that hardware will someday be "free," so long as customers sign up for multiyear software subscriptions and services contracts. Microsoft Corp. (MSFT.O: Quote, Profile, Research) Chairman Bill Gates has said he believes that, within a few years, hardware will be free and that software will be bought on a subscription basis, rather than as a one-time purchase that must be upgraded routinely.

"Bill Gates and I agree that within four to five years hardware will be free," Schwartz told Reuters, who will outline Sun's belief at a Sun conference in Shanghai this week that the network - the hardware, software, storage and its interlinks - is fast becoming a commodity. "

The "free" part is of course total bull. All it means is they seem to agree that we are rapidly regressing to the complete stack models of the past (not that Apple, Sun or the big IBM systems ever moved away from it, and even Microsoft always tagged close to the line). So Hardware & Software become an inseparable bundle. I'm not sure I like this evolution.

Just me (Sir to you)
Thursday, June 03, 2004

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