Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
Topics:
Microsoft; 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
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https://casecent.re/p/19910
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Abstract
Microsoft and Sun had 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. The case highlights the issues that led to the coming together of the two rivals and the dangers that might be in store for them.
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Abstract
Microsoft and Sun had 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. The case highlights the issues that led to the coming together of the two rivals and the dangers that might be in store for them.