Web Services Strategy

MBUS 626

Group 2

Phil JungSteve ConantMichael Jones

Executive Summary

• Founded in 1982 by three Stanford graduate students Bechtlsheim, Kholsa and Mcnealy

•  The company vision was that computers would talk to each other regardless of manufacture or operating system.

• Focused on network solutions to business providing software, hardware and systems.

 

Information Systems Triangle

Business StrategyOrganization

Strategy

IT/IS Strategy

Open platforms and Java Camp.

Create an e-business atmosphere that allows all devices to communicate with one another regardless of manufacturer, Operating System, Software or programming language. Provide useful platforms and software that are available for use through payment of royalties.Providing networks for businesses.

Provide top to bottom network solutions for businesses.

Bundles of hardware and software to build communication networks.

Software modules that exchange information seamlessly through a range of hardware, OSs and programming languages.

With security as a weakness, Sun developed their own system to handle the problem and make it a strength.

Competitive Situation

Sun's arch-rival is Microsoft.

Sun's Java programming platform was widely adoptedo IBMo BEAo Oracleo Other IT Vendors

Differentiationo Vertical integration of softwareo "Write-once, Run Anywhere"o "Open"

An Analogy

Adapted from David Chappell & Associates

Protocol Evolution

Adapted from David Chappell & Associates

Problems or Opportunities

• WS-I Decision• .NET Vs. J2EE

PORTER’S FIVE COMPETITIVE FORCES MODEL

New Market Entrants

Suppliers

•Substitute

Customers

Threats

Bargaining power

Dr. Chen, The Trends of the Information Systems Technology –Adapted by Specialist Steve-O

Competitors

PORTER’S FIVE COMPETITIVE FORCES MODEL

Uncertain business climate due to rapidly changing technology.

Sun offers

Manufacturers, IT vendors,Interdependency

•Accenture•BEA•Fujitsu•HP•Intel, Oracle•SAP•Other IT Vendors

• IT Vendors• Internet

Users• Businesses

Threats

Bargaining power

Dr. Chen, The Trends of the Information Systems Technology –Adapted by Specialist Steve-O

Web Services Strategy1. Do you project strong growth for Web services? What types of companies are most likely to deploy them, and for what applications? What are the main barriers to adoption?

2. Relative to Microsoft's proprietary programming platform for Web services, .NET, what arethe advantages and disadvantages of the shared platform employed the Java camp? Does theJava camp have a clear leader? Does it need one?

3. Should we be surprised at cooperation between Microsoft and IBM? Why did they help foundthe Web Services Interoperability Organization (WS-I)? Is WS-I likely to be influential?

4. Should Sun join WS-I as a contributing member? Lobby for a board seat? Boycott WS-I permanently?

Improving Competitive Advantage

Lessons Learned

TOP COMPARISON•Multi-tiered similar computing technology

•Both program support "Standards“

•Use different tools, but achieve same goal

•A lot of parallelism can be found

•Hard to compare the quality of programs sinceboth have pros & cons 

Thank you for your attention.

What actually happened?

Mark Hapner, Chief Web Services Strategist of Sun Microsystems have been elected to the board of directors in March 2003. He will only serve for two years while founding members have permanent seats. 

Law suits against Microsoft went nowhere, were behind the announcement in April 2004 that Sun and Microsoft were calling a truce. Microsoft would pay Sun $2 billion to resolve lawsuits, and the two companies agreed to work toward making their technologies more compatible.

On January 27, 2010, Sun was acquired by Oracle Corporation for US$7.4 billion, based on an agreement signed on April 20, 2009. Sun Microsystems, Inc. was subsequently renamed Oracle America, Inc