BEA Shares Fall Again On Reports Of Changing Sun-IPlanet Strategy - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

BEA Shares Fall Again On Reports Of Changing Sun-IPlanet Strategy

Shares of BEA Systems Inc. fell for a second day Thursday on fears that competition against the market-leading application server vendor would intensify after reports that Sun Microsystems would bundle its application server with the Solaris operating system.

Shares of the San Jose, Calif., company finished the day on the Nasdaq at $26.19, down 81 cents, or just over 3%. On Wednesday, the stock plummeted 20% after SG Cowen analyst Rehan Syed said a trade magazine report suggested Sun was considering tighter integration between the iPlanet application server and the Unix-based Solaris.

On Thursday, officials from Sun and iPlanet, an alliance between Sun and the Netscape division of AOL Time Warner Inc., said the strategy between Sun and iPlanet hadn't changed since last year, when the companies started marketing the products together. Also, in disclosing a new Web strategy in February, Sun said it would offer the Solaris OS and the iPlanet application server bundled in the company's hardware. But "to answer directly in terms of are we integrating and cementing the application server into Solaris, the answer is absolutely not," says Marge Breya, marketing officer for iPlanet.

IPlanet would continue to run on multiple operating systems, and Solaris would support a variety of application servers, including BEA's WebLogic, says Anil Gadre, VP of Sun's Solaris unit.

Syed told Reuters that even if Sun changed its position on iPlanet, it probably wouldn't affect BEA in the long term, because the latter's product is better. "[Sun's] technology isn't good enough, and we think enterprise software buyers aren't very price sensitive and want the highest-quality product in the market," Syed said.

Lehman Brothers analyst Neil Herman described reports of the iPlanet/Solaris integration as "unclear" and said "BEA has a distinct advantage over both these competitors because of its platform-neutral approach and strong support from independent software vendors." Herman wrote in a research note, "We continue to believe that BEA will emerge as the dominant player in this space."

Application servers have emerged as the infrastructure for running commercial Web sites and the development platform for building the personalization, content management, shopping carts, and other applications.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll