Sun Microsystems announced it has set up a $300 million venture capital fund
to help promising Internet startups get off the ground. It also announced the
acquisition of Innosoft electronic messaging company.
Sun’s services for start-ups will include providing including lab centers
for developing and testing ideas and discounts on packages of Sun computers and
software. The so-called "iForce" program will include expertise from
other companies, including Web hosting firms, Internet service providers and
software developers, to help startups overcome the big technical hurdles of
getting a new Web site or service up and running.
Since most Internet start-ups will needs lot of servers and workstations when
their business takes off, Sun stands to benefit from having those company
structured their business around Sun hardware and software. "The intent is
that you will come back to the people who helped you build it. That is where the
money will be made," said John Loiacono, Sun's chief marketing officer who
added that 1,000 startups have already signed up for the program.
Sun will open three iForce centers in Paris, Tokyo and Menlo Park,
California. Customers can test programs on a variety of hardware and software
platforms to make sure they work. The customer will be given an analysis of what
worked best and they can either buy the products from Sun or deal with another
company. Another Sun program, called Startup Accelerator, helps new businesses
figure out what they need, from Sun servers and Oracle databases to Web hosting
from Exodus Communications or Internet access. Sun then brings all the vendors
together and the customer can buy a complete package.
Meanwhile, Sun said it had agreed to buy Innosoft International to for its
Internet messaging products and technology. Financial terms were not disclosed.
Innosoft will join Sun's iPlanet electronic-commerce unit, an alliance with
America Online's Netscape unit that was formed a year ago to sell e-commerce
software. Innosoft's messaging and directory services will be added to iPlanet's
portfolio.