New Software Offerings Will Accelerate Adoption
of the JavaTM Platform in the Enterprise.
PALO ALTO, Calif. - Sun Microsystems, Inc.,
today announced that it has signed a definitive agreement
to
acquire NetDynamics, Inc., a privately-held company specializing
in enterprise network applications and application server
software
and tools.
"With the acquisition of NetDynamics, Sun will gain
a critical
component for the enterprise solutions that companies working
on
next generation network applications are demanding,"
said Edward
J. Zander, Chief Operating Officer of Sun Microsystems,
Inc. "As
we have said all along, Sun is committed to providing customers
with the best implementations of the Java technology. Using
this
technology as the foundation, we will add our implementation
of
Enterprise JavaBeans to provide our customers with the solutions
they are seeking."
"As a recognized industry leader and innovator, Sun
has the
resources and complementary technologies needed to increase
the
adoption of Java technology in the enterprise, and establish
the
application server as an architectural foundation for network
computing," said Zack Rinat, president and chief executive
officer
of NetDynamics, Inc. "As part of Sun, NetDynamics'
solution will
play a key role in enabling businesses to leverage network
computing to gain competitive advantage with their customers,
suppliers and distributors."
NetDynamics' application server currently supports the Java
platform and will enhance and extend Sun's capabilities
to benefit
enterprise developers, independent software vendors, corporate
end users and IT managers.
The acquisition will be in the form of a stock for stock
merger. The
closing of this acquisition will be subject to regulatory
approvals,
NetDynamics' shareholder approval, and certain customary
conditions to closing.
Catalyst for Enterprise
JavaBeansTM Component
Architecture
Sun worked closely with industry leaders to define the
specification for the Enterprise JavaBeans component architecture.
The Enterprise JavaBeans application programming interface
(API)
uses Java technology to break through the complexity of
building
end-to-end business solutions. With the Enterprise JavaBeans
API,
developers can design and re-use small program elements
to build
powerful corporate applications.
"The combination of application server software and
Enterprise
JavaBeans components will be a powerful tool for corporations
wanting to tap into preexisting systems and expedite deployment
of
new applications over the web,"said Alan Baratz, president,
Sun's
Java Software. "Sun's goal is to provide the highest
quality
implementation of the Enterprise JavaBeans API along with
our
application server offering. We fully expect healthy competition
in
this market; more competition leads to innovation, which
in turn
leads to greater customer choice."
Sun will continue to ship and support NetDynamics' current
product line. In the future, Sun expects to include NetDynamics'
technology in next generation software products for the
enterprise.
The above news release contains forward looking statements
that
involve risks and uncertainties. Sun's actual results may
vary
materially from the results discussed in the forward-looking
statements. Factors that may cause such a difference include
those
risks surrounding the closing of the acquisition, timely
development, production and acceptance of new products and
services, Sun's ability to compete in the highly competitive
and
rapidly changing marketplace and the other risks detailed
from time
to time in Sun's periodic reports filed with the Securities
and
Exchange Commission, including, but not limited to, its
Report on
Form 10-K for the fiscal year ended June 30, 1997, and its
reports
on Form 10-Q for its fiscal quarters ending September 28,
1997,
December 28, 1997 and March 29, 1998.
About NetDynamics, Inc.
NetDynamics, Inc. offers the first comprehensive Enterprise
Network Application Platform, solving the problems organizations
face in integrating disparate computing environments, scaling
business-critical applications and managing distributed
systems. The
NetDynamics platform leverages a powerful, open and secure
architecture to enable innovative business solutions. More
than 650
customers including AT&T, Chevron, Fidelity Investments,
NationsBank, and Service Merchandise, use NetDynamics, which
also is supported by more than 100 leading systems integrators,
VARs, and ISVs. Based in Menlo Park, Calif., the company
was
founded in 1995.
About Sun Microsystems,
Inc.
Since its inception in 1982, a singular vision, "The
Network Is The
ComputerTM," has propelled Sun Microsystems, Inc. (NASDAQ:
SUNW) to its position as a leading provider of high quality
hardware, software and services for establishing enterprise-wide
intranets and expanding the power of the Internet. With
more than
$9 billion in annual revenues, Sun can be found in more
than 150
countries and on the World Wide Web at http://www.sun.com.
Questions & Answers
Q: What was announced?
A: Sun announced that it plans to acquire NetDynamics Inc.,
a
privately-held company based in Menlo Park, Ca.
Q: Who is NetDynamics?
A: NetDynamics is a privately-held enterprise software company
headquartered in Menlo Park, Calif. With 16 offices worldwide,
NetDynamics has 170 employees and more than 650 customers,
many of whom are Global 2000 organizations. NetDynamics
announced fiscal year 1997 revenues of $13.3 million. The
company's flagship product is the NetDynamics 4 platform,
the
industry's first comprehensive Enterprise Network Application
Platform.
Q: What has been the relationship between Sun and
NetDynamics to date?
A: NetDynamics was an early adopter of Java technologies
and one
of the first companies to deliver Java platform solutions
for
enterprise network applications. The two companies have
worked
closely on the development and implementation of solutions
for the
enterprise, including Sun's Enterprise Java Beans component
architecture. In addition, Sun and NetDynamics share a large
number of mutual customers, common system integrators and
consulting partners.
Q: Why did Sun choose to acquire NetDynamics?
A: Sun felt NetDynamics had done the most effective job
of not
only delivering technology, but building the business foundation
around that technology to expedite Sun's entrance into the
application server marketplace. NetDynamics offers a mature,
widely proven solution for delivery of enterprise Java technologies.
The technical excellence of NetDynamics' product has garnered
several industry awards and NetDynamics has an installed
base of
more than 650 customers and relationships with more than
150
systems integrators and consultants.
Q. Is this a change in strategy for Sun? Does Sun now
intend to broaden its software product line?
A. Sun has said in the past that it will compete on product
implementation where it makes good business sense. This
is one of
those cases. The application server software market is poised
to
explode and we believe that Sun can offer a powerful solutions
to
companies working on next-generation network applications.
Sun
firmly believes that keeping the standards open and competing
on
implementation yields the most innovation and ultimately,
the
greatest customer choice.
Q. What is an application server?
A. The application server is the lynchpin of the modern
computing
environment -- layering over the complexity of disparate
legacy
systems. The application server sits between the between
Web
servers and back-end data sources, running business logic
on this
middle tier and connecting legacy systems to HTML clients
and
clients written in Java programming language. The application
server is a scalable and fault-tolerant environment for
hosting
Enterprise JavaBeansTM components. Developers can create
reusable components meeting the Enterprise JavaBeans (EJB)
component specification to perform back-end or mainframe
transaction processing. Enterprise JavaBeans components
can then
be combined with other components built with other Enterprise
Java APIs such as the JavaTM Naming and Directory InterfaceTM,
Java Database Connectivity [JDBCTM], or Java Messaging API
to
connect to the legacy systems.
Q: Why does this acquisition strengthen Sun's position as
an enterprise computing solutions provider?
A: With this acquisition, Sun adds to its portfolio the
core elements
of the next generation architecture for network computing.
NetDynamics strengths - application server, application
integration
and development software - are the lynchpin for a new application
platform. Sun will be augmenting NetDynamics' technologies
with
our Enterprise JavaBeans components to produce next-generation
products and solutions.
Q: IBM, Oracle, Sybase, Netscape and many others have
announced products that compete with NetDynamics. Will
this acquisition by Sun fragment the market?
A: This acquisition, along with the announcements made by
other
vendors, validates and strengthens the market. All the vendors
have
announced products that are implementations of the same
open
standards of the Java platform. Offering a choice of open
standards-based products provides customers with the assurance
that they have complementary alternatives and are not locked
into a
single vendor solution.
Q: Where can I find more information about this?
A: More information can be found on both Sun and NetDynamics'
Web sites. @Macarlo, Inc. @Macarlo's Shareware & Web OS/2 Java Lobby Member
Java Site Accredited