Google deal with Sun Microsystems is set to boost rivalry with Microsoft

Telecommunications Mergers & Acquisitions, October, 2005 by Anonymous

Google agreed an alliance with Sun Microsystems that could heighten the competitive challenge it poses to Microsoft in the desktop software business.

The prospect of one of Microsoft's oldest rivals linking with its newest adversary sent a ripple of expectation through Silicon Valley. Some speculated that the two companies might attack one of Microsoft's core businesses, its Office suite of PC applications.

However, while the new allies hinted that in the future Google might help to promote open source software rivaling Office, the two did not lay out any firm commitments. Shares in Sun Micro, which had risen 9 percent in anticipation of the announcement, closed fractionally up at $4.20.

Nevertheless, the sight of Sun and Google pledging co-operation brings a new...

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