Software executive says PC era is over

Zander: Impressed by European interest in the Internet

In this story: Result of a 1998 complaint European 'Net interest 'amazing' RELATED STORIES, SITES

By Douglas Herbert

LONDON (CNN) -- The high-tech world is on the threshold of a new era in which the personal computer will take a back seat to more convenient ways of accessing information over the Internet, a top executive of U.S. software company Sun Microsystems said Tuesday in London.

"We are in the post-PC era, no matter how many people don't want to hear that," Ed Zander, Sun's president and chief operating officer told CNN.

"You look at the numbers, and we are moving to an information-appliance model, we are looking to putting information services on networks. There is a new message inside the customer that they want to hear about."

Zander's remarks, made near the end of a two-week promotional visit to the UK and Ireland, were a swipe at Sun's arch rival, Microsoft, which controls 95 percent of the global market for personal computer operating systems.

Last Thursday, the European Union Commission opened a formal case against Microsoft Corp. to probe allegations that the software giant used its dominant position in PC-operating system software to leverage its market for server software.

The EU investigation differs in its details from a similar case against Microsoft being examined by the U.S. Justice Department.

The EU probe stems from a 1998 complaint by Sun Microsystems, and joined by several other software companies, that Microsoft had breached antitrust rules by "engaging in discriminatory licensing and by refusing to supply essential information on its windows operating system."

EU Competition Commissioner Mario Monti said Microsoft has two months to reply to the European Union's statement of objections under EU laws, though Microsoft has the right to request extra time.

Should wrongdoing be found, the EU is authorized to impose a fine equal to 10 percent of a company's annual worldwide sales, though fines have in practice been much smaller.

Zander acknowledged that Microsoft remained a "tough competitor" in Europe, where Sun generates 27 percent of its worldwide sales and has benefited from strong local demand and a sharp spurt in Internet interest among companies and individuals.

But he sought to play down Sun's role in the EU investigation.

"The EU investigation is not just Sun, they've been investigating for a long time," Zander said. "There is a Sun position that we gave them based on open interfaces and the ability to inter operate with some of (Microsoft's) operating systems and to compete effectively. They used some of our data to file their complaint."

Zander said more than 100 companies showed up to a dinner Sun hosted Monday night in London for application service providers and Internet start-up companies.

"I was amazed. I didn't think that there was that degree of interest level of new companies and start-ups," he said. "There is a lot happening in this whole area. In Scandinavia and Germany, we're also seeing lots of activity."

Last month, Sun cheered Wall Street with robust fourth-quarter results that came in ahead of expectations. Zander announced at the time that Sun, wary of resting on its laurels, intended to plow ahead with new product launches and promotion of its new Celera operating system.

EU opens Microsoft case
Aug. 3, 2000
Sun shines on Street
Jul. 21, 2000

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