Sun and Microsoft: Friend and foe

By CNET News.com Staff April 5, 2004 6:02 AM PST Sun and Microsoft call a truceScott McNealy and Steve Ballmer Longtime enemies Sun and Microsoft on Friday reached a broad agreement that will result in Sun receiving nearly $2 billion. But the money doesn't mean Sun is out of the woods--it's laying off employees as it struggles to boost sales. And the two companies say they will remain fierce competitors. update The agreement dictates that Microsoft must make $1.95 billion in payments to Sun, which separately says it will cut 3,300 jobs, as its string of losses continues. April 2, 2004 In its first major staff reshuffling following Friday's announcement, the company appoints a new head of software operations and says another top executive is leaving. April 5, 2004 The server maker may have settled longstanding legal disputes with Microsoft, but it's still in the shadow of other major problems. April 2, 2004 Scott McNealy spent years sniping at the "evil empire" of Bill Gates. Now, a more customer-centric approach unites the archrivals, forcing them to bury the hatchet. April 2, 2004 Sun CEO Scott McNealy has launched so many wicked verbal attacks on Microsoft over the years that Microsoft's nearly $2 billion settlement could be considered hush money. April 2, 2004 A kinder, gentler Scott McNealy?Scott McNealy, CEO, Sun Microsystems The software giant's decision to settle with Sun over antitrust and patent issues underscores a change in attitude that has been building through a series of rancorous legal disputes. April 2, 2004 perspective CNET News.com's Charles Cooper says the Microsoft-Sun deal boils down to a simple formula: The enemy of my enemy is my friend. April 2, 2004 function pollPop() { pollwin = window.open('','pollwin','width=400,height=220,status=no,scrollbars=no,resizable=no,toolbar=no'); document.forms["myForm"].submit(); } Is Sun selling out? Yes No Undecided View results newsmaker Seemingly transitioning from adversaries to partners, Microsoft's Steve Ballmer and Sun Microsystems' Scott McNealy discuss both shtick and their mutual focus on IBM. April 2, 2004 The two companies say a complex legal framework and "patent regime" protecting intellectual property were necessary to not only settle past disputes but also to pave the way for deep technical collaboration. April 2, 2004 newsmaker Microsoft's top attorney, Brad Smith, says the software giant's recent antitrust settlements reflect its "very committed" stance on industry collaboration. April 2, 2004 commentary Forrester experts say Sun Microsystems' major deal with Microsoft makes Solaris and other assets shine more brightly. April 2, 2004 Battered company maps strategy for comeback RealNetworks files a $1 billion lawsuit against Microsoft Microsoft and AOL Time Warner agree to a far-reaching settlement Editors: Scott Ard, Jon Skillings, Jeff Pelline Copy editors: Zoë Barton, Scott Martin Design: Pam Dore Production: Meghan McDowell, Mike Markovich