On Nov 15, 2:01 pm, Patrick Wright <[EMAIL PROTECTED]> wrote:
> Java, broken out in terms of revenue, has brought in around $220 million per
> year for the last couple of years (no details before that). Not
> knowing the costs involved, and just guessing, it seems like a pretty
> tidy sum of money, which should more than cover the costs involved. I
> think it must also be pretty clear to Sun that ignoring or "letting
> Java die" in some way would be killing one of the golden geese at the
> company, if nothing else in terms of branding. I can't imagine it,
> anyhow.

It's a general assumption that Sun doesn't make money from Java, other
companies do (like IBM or Oracle), and the numbers support this.  Sun
has an operating system, a database, Java, and middleware and made
$124mln the last quarter from all its software group.  IBM has
operating systems, a database, system management software, and
middleware and makes 5.2 bln last quarter (42 times as much,
http://www.ibm.com/investor/3q08/presentation/3q08.pdf, slide 8) with
a gross margin of 84.7% (that's pretty nearly a Microsoft Windows or
Office margin). Nothing in the IT industry is as profitable as selling
"shrink-wrapped software", a business that Sun got out by giving its
software away.

Karsten
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