MOUNTAIN VIEW, Calif. – Google Inc. took a step toward challenging Microsoft Corp.’s dominance of computer software with the announcement Tuesday of a collaboration agreement with Sun Microsystems Inc.
The move could lead to Google offering next-generation word processing, spreadsheet and collaboration tools that would take on Microsoft’s industry-leading Office suite of software.
But for now its significance may be mostly as a symbolic shot across Microsoft’s bow, signaling Google’s intention of attacking the world’s biggest software company head on.
Aside from a plan to offer Google’s toolbar program with downloads of Java software, details of the agreement were scant. Though it could lead to a new pipeline for Sun software to millions of computers, there was no firm commitment.
Some downplayed the announcement as a publicity stunt that probably would not have occurred had Google CEO Eric Schmidt not spent 14 years of his career working at Sun under CEO Scott McNealy.
The alliance would be a boon for Sun if Google promised to buy some of the company’s sophisticated computers, but no ironclad commitments were announced.
“There really isn’t much depth to this partnership,” said industry analyst Rob Enderle. “I think Eric is doing this as personal favor for Scott. It provides a certain amount of press and visibility to Sun, when there hasn’t been very many positive things going on at the company.”
Sun’s shares edged up a penny Tuesday to close at $4.20 on the Nasdaq Stock Market. Google’s shares fell $7.68 to finish at $311.
As part of the agreement, Sun will offer Google’s search toolbar with downloads of its free Java software, which is required to run a variety of Web-based applications and works with multiple operating systems.
The two firms, which did not disclose terms of the deal, said they also agreed “to explore opportunities to promote” other Sun technologies, including the freely available OpenOffice.
OpenOffice, an offshoot of Sun’s StarOffice, is a leading challenger to the ubiquitous Office suite, a major cash cow for Microsoft. Both offer a word processor and spreadsheet among other applications.
“OpenOffice is already an alternative, but if Google gets involved in supporting it, that could be the thing that puts it over the top,” said Forrester Research analyst John Rymer.
Neither McNealy nor Schmidt would say when or how Google might distribute Sun’s software. Both said the Google toolbar option for Java downloads – the toolbar provides quick access to Google search, spell checking and a popup-ad blocker – is just a first step in a significant agreement.
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