Though the ruling has some
long-term strategic value, he adds, "At the end of the
day, Sun is in the hardware business, and this really
helps, in the short term, the people who sell Java
software like BEA, IBM and Oracle(ORCL Quote - Cramer on ORCL - Stock Picks). Sun makes very little money selling Java-enabled software; IBM and BEA make billions. And having all PCs able to read and execute Java helps their business more immediately."
From the standpoint of Sun, First Albany's Walter
Winnitzki called the ruling "an important religious
battle, but probably not something that's going to
impact the near-term momentum of the company," which
he noted "has not been good."
The bottom line: Although Sun has scored a sweet
legal victory, it has yet to find a way to turn Java
technology into significant profit. "It's something of
a Pyrrhic victory. Sun's real challenge is to find a
business model [for Java] that
works," said one investment banker who has followed
the company for some time.
Today's order is only a preliminary injunction,
however. It's not clear whether Microsoft will be able
to stay the latest ruling or whether it could be
reversed following a full trial, which is expected to
take place within two years.
K.C. Swanson
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