"Sun's move to offer free Internet versions
of office programs, such as word
processing and spreadsheets, could chip
away at Microsoft's dominance of the
desktop software market, analysts said
Tuesday."
"Analysts said Sun's move could trigger a
sea change in the software industry, with
more applications and data being based
on the Internet, and managed by Internet
service providers -- much like electronic
mail is now handled."
"Scott McNealy, Sun's CEO, downplayed
the threat to Microsoft... Still, company executives pointed to the
competitive advantages of the free
StarOffice software, which has a look and
feel that is similar to Microsoft's Office
suite. Microsoft Office currently costs
from US$400 to $700."
"Analysts said they expected the move to
erode Microsoft's customer base,
especially new users, rather than cause
an immediate upheaval in the industry."
