Saturday May 28, 2005

Ecology, Communities and Platform Adoption

Got a note yesterday from Chris Melissinos, Sun's Chief Gaming Officer, below:

Want to see the next generation of game design? Will Wright's Spore demo from GDC is one of the most amazing game design demos I have ever seen. Procedurally generated world and inhabitants that pass along genetic traits. Amazing stuff! Viewing this video requires you entering your name and e-mail. It's an hour long, but you can skip around. Enjoy!

It's definitely worth a peek - shots of the audience are as interesting as the presenter.

On a (barely) related note, we're seeing more and more momentum behind what we see as our ecosystem of strategic communitites, driving Mozilla Firefox, OpenOffice/StarOffice, NetBeans, the Java community and the OpenSolaris/Solaris community. All, interestingly, appear to be accelerating (and having just signed one of the largest industrial companies on earth to a global Solaris site license (across all x64 platforms, displacing the leading alternative - and not just their requisite failed Linux implementation on a mainframe), we're feeling pretty positive about the revenue equations, too).

We're seeing a growing number of defectors coming back (the Eclipse defections are especially gratifying). As an example, the graphic below shows a rank ordering of the popularity of the NetBeans.org site vs. Eclipse.org, IBM's tools site.

The NetBeans community has pretty much caught up - and is on a path to keep up the momentum.

If it wasn't obvious, blogs (coupled with extraordinary innovation) are playing a central role in driving community awareness and adoption - of all these platforms. Blogs put a human, and real-time, face on communities, their participants and community evolution.

As will become more obvious by the day, you can compete against a product, but it's close to impossible to compete against a community.

It's no coincidence that as we enter our most aggressive product cycle ever, an understanding of ecology, ecosystems and community development will once again be at the core of our strategy.

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Wednesday May 25, 2005

Back from a Week on the Road

Sun's a global company, so I spend a fair amount of my time on the road, talking to customers and employees. Last week, I was touring Europe, meeting with government officials and commercial customers, talking about open standards, open source, and the opportunities ahead.

On the one hand, I really enjoy seeing the world. It's becoming more true by the day that the globalization of network standards is allowing the localization of the internet itself. A web server in the US is the same as a web server in Brazil. But a web service based in the US is unlikely to succeed against its local Brazilian counterparts without comprehending local culture. There's nothing like being there to understand the market.

I also had a chance to join McLaren, and some of our customers at last weekend's Formula 1 race in Monaco (ok, I could only stay for the trials). 11 stories up in the Mclaren apartment, I had a bird's eye view of the trials below. Mclaren and Sun have been partnering on car design and telemetry for a while - and we're featured on what seems like a square inch of real estate on the back of their rear view mirrors.

I'd never seen a race before (or been to Monaco, for that matter) - and I'd never heard a race, either. Along with hats and t-shirts, ear protection is a big seller from street vendors (seriously). You have no idea what loud is until you hear an F1 car accelerate. And it's amazing to see up close what $300M+ of R&D looks like with four wheels and a steering column (according to Jonathan Neale, that's what they invest for one season to build a few cars). I asked Jonathan if he'd ever driven a Formula 1 car. "Um, no." Granted, I've never taken the console of an E25K.

It's also amazing to hear what our competition's been telling some of our European customers. IBM told several that they couldn't port their apps to Solaris 10 because Sun is withholding information - but only on Opteron. Which even the customers knew was ridiculous. It's tough to withhold information when the product's free, and code's open. (They offered another customer a "private version of WebSphere on Solaris 10, supported by IBM Global Services" - um, no thank you.) I'd like to thank the customers that continue to demand choice, and the ton of partners we're signing up to deliver it. I think we've cleared 1.5M license downloads.

The downside of travel, of course, is being away from home. With the gobs of bandwidth available in the world, I'm hoping someone will deliver a reasonable life size video conferencing solution that doesn't cost as much as an F1. In my lifetime. I'm not convinced it'll ever replace truly being there, but I'd love to save a couple plane flights...

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Sunday May 15, 2005

Tearing Down Walls

Friday last week marked the passing of an era. Actually, two eras.

First, we delivered the first fruits of the Sun/Microsoft relationship. I want to thank the teams, both at Sun and Microsoft, for their persistence and dedication. I know we both had all kinds of divides to bridge, and you all did a great job. I've heard nothing but positives from our mutual customers (and I've divined as much from a few analysts too polite to speak with their mouths full, busily eating their hats :).

What we both demonstrated, interoperability of directory systems between Microsoft/Windows and the Java Enterprise System/Solaris, opens a world of opportunity. It's increasingly clear that the management of identity - not simply security - will be the foundation of service oriented architectures. The question "who has access to what?" is the maturation of the question, "how do we keep the bad guys out?" - and answering it will be a priority for every CIO on the planet (courtesy of SOX), in addition to every media company (struggling to comprehend DRM).

Now I also want to ensure that everyone knows the IP that results from this relationship - to the extent our rights permit - will be available as a part of our OpenSolaris initiatives. We have no intent of 'going proprietary,' and some of the commentary theorizing we might is naive. Don't expect us to open source Microsoft's protocols - it's their property, after all, to which we have a defined license. But certainly those technologies distributed with OpenSolaris/Solaris will be covered under the CDDL (and supported commercially).

(Parenthetically, I'd like to formally offer the CDDL to Professor Deepak Phatak of the Indian Institute of Technology, whose comments suggest we share a licensing philosopy. We designed the CDDL, leveraging the wonderful work done by the Mozilla Foundation, as a resuable license, to promote participation - along with community, opportunity and independence.)

The second momentous change announced last week was IBM's decision to permit company employees to blog. It's certainly a good step forward for a company increasingly seen as retreating to isolationism - so I want to welcome my colleagues at IBM to the blogosphere, and humbly offer Sun's blogging policy as a template for your own. Tim and I give you permission to simply use ours. Just search/replace "Sun" with "IBM."

We won't even try to extract a punitive porting fee...

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Tuesday May 10, 2005

Sun's Acquistions Accelerate Microsoft Interoperability

By now, you've seen the press release announcing our acquisition of Procom's IP, and Tarantella, Inc. I'd like to give a backdrop to the acquisitions, and an overview of the opportunities.

The Procom transaction is pretty straightforward - we loved the technology we were OEM'ing so much, we bought it. We see the demand for network attached storage (NAS) growing by the day, and as we alluded to in the press release, the NAS world is increasingly relying upon general purpose servers, with industry standard OS's. Good news, we have both - which coupled with Procom's NAS technologies, are going to give us a ton of headroom is bringing the price of NAS storage way, way down. And still driving very attractive margins - while attaching to Sun systems, Microsoft Windows systems - wherever data's generated, we'll attach to store it.

The second transaction requires a little more backdrop.

There's no question enterprises and CIO's are interested in an alternative to the deployment complexity associated with PC's. 'Thin' is in, but according to our calculus, the existing 'thin client' options are just as expensive as a traditional PC (if not more expensive). There's similarly no question the preponderance of legacy desktop applications are written to Windows, rather than the internet. And preserving access to that legacy is a checklist item for those seeking to lower desktop PC costs while moving to shared services or grid infrastructure.

With Sun's SunRay, what we view as the first of many "DOIP" devices to emerge, we've delivered a step function improvement in security and cost - literally moving the desktop to the grid. But there have been two principle objections raised by customers.

The first related (the past tense is deliberate) to the need for a continuous network connection. Without a high quality network, a SunRay is worthless - at its simplest, it's a display that uses the network instead of a cable to attach to a CPU (which means the CPU for a SunRay can be 1,000's of miles away). This network centricity is one of the SunRay's many advantages - as a completely stateless device, if you steal a SunRay, you've got yourself a worthless piece of plastic. Nothing more. There's no data, even settings, to steal - the value's in the network. So problems like the FBI or Wells Fargo experienced can be a thing of the past. It also means you can centralize upgrades and configurations - and put it all in the network.

Before networks were truly pervasive or of reasonable quality, this 'constraint' - the need for a persistent network connection - was an impediment to adoption. But now we say, "you run a SunRay wherever you run Google." And the objection's off the table.

The next issue hasn't been so easy to overcome. It's that the majority of the legacy applications customers were looking to present through a secured thin client were written to Windows. And SunRay today leverages an open source Mozilla/StarOffice/Java Desktop System stack, where Windows is largely inaccessible unless you grapple with the complexity and expense of a Citrix license. With the increasing interoperability between the two companies, though, Tarantella's technology provides a foundation to present Windows applications over a grid (ours, or a customer's). Without a Citrix license.

So at this point, there are no more objections - SunRay's are a far more efficient deployment option for desktop applications. Windows, Solaris or Linux.

So if you're looking for 10 great reasons to look to SunRays as you lower desktop/PC costs, here goes:

1. SunRays consume <1/10th the electricity as their gas guzzler cousins.
2. SunRays generate no noticeable heat - so they don't drive up AC bills.
3. SunRays are completely silent (they don't need a fan, they're solid state).
4. SunRays centralize system operations - you can upgrade 32,000 users across the globe in about 2 hours (we do it all the time - just like eBay, Google, and every other shared service).
5. SunRays are secured by the same JavaCard used by the US Government, and the GSM Assocation. Multi-factor authentication comes to desktops.
6. SunRays are stateless - there's no value in stealing one, from a school, factory or call center.
7. They cost around $1/day to operate.
8. There are no known viruses for the Java Desktop System.
9. The SunRay 170 is very compact (it's amazing how small a computer you can make without a CPU!).

And as a result of this morning's acquisition,

10. SunRays will ultimately run Microsoft's Windows applications without modification, and without the complexity and expense of a Citrix license.

You've now got every reason to take one for a test drive.

Which helps to put into context why the acquisition of Tarantella seemed like such a natural fit.

And both acquisitions ensure the Sun/Microsoft announcement on Friday is going to be full of good news for customers (and Solaris/Java developers).

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Sunday May 01, 2005

Drawing a Line in the Sand

A few years back, Sun acquired a small Czech company, named NetBeans. NetBeans had built an open source developer community and environment (whose accelerating adoption continues to this day - get it here). The product's most distinguishing feature was (and still is) its update mechanism - at any point, a NetBeans developer can request the latest enhancements to the product, and see new functionality appear in their development environment. On demand, no consultants at your door.

It was an early experiment in remote updating that led us to roll out a similar auto-update feature for the basic Java platform. If you use the Java platform on Windows, the familiar cup and steam logo alerts you to new patches, security enhancements and features. It's proven very useful, for everything from patches to version releases.

Both of these initiatives were early experiments in the creation of an on-line service infrastructure (the predecessor to the Sun Grid) to augment our technology products - to test the desirability of on-line services designed to automate the management, revision and security of products connected to the network. The results have somewhat exceeded our expectations - in that our update volumes now exceed 1 million requests a day (more than a million per day). We're well on our way to growing one of the largest update networks on the internet, and a constant connection to our core platforms and customers.

Now if you read this blog, you know I'm a big fan of GM's OnStar service. You can read all about it here. The basic idea is that a driver pays $19.95/month for a service that can, with a call to a service center, unlock a locked car via satellite. OnStar can dial 911 if your airbag deploys and you can't be reached. It's a great service, delivering peace of mind and real value (not just to its subscribers, but other drivers who might benefit from a 911 call). OnStar will, I'm convinced, give GM the ability to moderate the cost of acquiring a GM automobile - by augmenting their basic product with a new revenue stream, and a differentiator against their competition. It also radically reduces churn, from what I understand.

In reality, this is nothing new. If you own a cell phone or set top box, or have a Yahoo! ID, you're already a subscriber to network services. We've always looked at a cell phone or a set top box, or even a PC as a client of network services. But we've never looked at a server that way, or an operating system, or a middleware platform. Until now.

Tomorrow morning in Washington, DC, Sun's going to draw a line in the sand - on behalf of the entire IT industry. It's time we all started taking responsibility for not only the quality of our hardware and software products, but the integrity of those products after they're put into operation. We'll be announcing a new service to the Sun Grid, an Update service for all hardware and software delivered by Sun. It's the seeds of GM's OnStar for the IT industry, and puts Sun one step closer to taking active responsibility for all the technologies we deliver - even when they're running on our competitor's platforms.

Can Sun's Update service target Solaris running on a Dell machine, or the firmware on a Dell system? How about HP? IBM? Given that nearly 80% of the nearly 1.3 million license downloads are being loaded onto non-Sun hardware, the answer's an unequivocal yes. Can we update Java on a Windows machine? Absolutely. Sun's Update service will be multi-vendor from the outset - and truly open. How open? We'll make the update network available to all our ISV's and partners - as well as our customers, for their own applications. And unlike the closed update networks being operated by some of our open source competition, we'll even open source the code. Open is open.

We're hosting the announcement of this new Update Service (technically, the Sun Connection Update Service) in Washington, DC for a reason. The US government has long promoted the idea that the IT industry should take far greater care and responsibility when delivering technologies that touch public networks. They've taken other vendors to task for "dump and run" tactics, where a vendor will win bids based on a low ball price, without regard to the value or risk their wares bring to the networks to which they're attached.

That's one of the reasons the US government has moved away from "best price" procurement, and toward "best value." If a cheap server breaks three times a week, it doesn't represent value for taxpayers. If it can't keep viruses at bay or be easily kept up to date, it represents a quantifiable risk.

And although the US Government has been the most vocal in public, we've heard the same theme from governments worldwide - many of whom are looking to the US to lead the largely American IT industry to 'step up,' to take responsibility. If Boeing has to vouch for the engines on airplanes (technically, GE vouches), surely the IT industry should start vouching for the systems managing air traffic control - minimally, whether they're being kept up to date.

Like last September's event targeting our Wall Street customers, or our event earlier this year for the global education and learning community, this event targets a specific audience: Governments, the world over. With a message that says, "You asked the IT industry to take greater responsibility. We heard you. And here's how we're responding."

As we've seen in our business on Wall Street, focus begets growth. And there's no doubt in my mind there's growth to be had with governments. They're proving to be some of the world's most important service providers - from social services to national defense, they'll be some of the largest SP's the world will ever see. But as OnStar and Verizon and Comcast prove by the day, opportunities to grow with your customers may only accrue to those able to deliver sustainable value and constant engagement.

Not just a cheap car, phone, set top box. Or server.

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