E-Commerce Opportunity

Sun Microsystems Market Development

August 2000
 Agenda

The Age of Dot-com

Sun’s E-business Strategy
iForce: Your Dot-com Edge

Sun Microsystems
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 What is the Age of Dot-com

• Rethinking and retooling every aspect of how a

company does business
• Providing access to vital information through a
portal to anyone, anytime, anywhere on any
device
• Deploying proven, reliable solutions faster than
before
• Outsourcing everything that is not a core
competency – from e-mail to ERP

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 The Dot-com Age provides
significant opportunities
Size `99 Layer
Commerce Intermediary Application Infrastructure

$165 B $74 B $95 B $173 B

E-tailers, Internet
On-line travel Computer
brick and consultants,
agents, hardware,
Description

mortar Commerce
brokerages, ISP/SP,
companies and
content Backbone
selling on- multimedia
aggregators, providers,
line, applications,
portals, ad networking
subscription web
brokers, on- hardware
based development
line and software
companies software
advertisers

[Link], Yahoo, Scient, Sun, Cisco,

Examples

e-Toys, DoubleClick, Oracle, Mindspring,

Cisco, e-Sun Etrade, BroadVision, Qwest
ZDNet iPlanet
Sun Microsystems Based on : Measuring the Internet Economy: October 1999
Confidential
Sun Microsystems Confidential Center for Research in Electronic Commerce, Univ. of Texas - [Link]
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 The Internet is expanding rapidly
Worldwide Web Growth Global Growth
(Millions of unique Sites) (Millions of adults using Internet)

3.65M

900
765
800 mill Middle
East/Africa
700
Eastern Europe
600
2.04M 25% South America
500
350 mil
400 Asia/Pacific
28%
1.23M 300 21% Western Europe
200 25%
100 30% North America
43% Western
0 Europe
Year 2000 88M
Year 2005

1997 1998 1999

Source: June 1999, OCLC Research-Web Characterization Proj. Source: Computer Industry Almanac, Dec 1999
Sun Microsystems [Link]/oclc/research/projects/webstats/[Link] [Link]/[Link]
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 Companies will Invest to Capitalize
on this Opportunity
Total IT and Web Spending by US Companies ($B)
IT Spending Web Spending B as %
(A) (B) of A
1999 710 86 12%
2000 772 119 15%
2001 853 172 20%
2002 938 225 24%
2003 1,048 282 27%

CAGR 10.2 34.6

Sun Microsystems
Source: IDC, The 2000 US web spending model,
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 The impact of Dot-Com Age on
business infrastructure

Continuous
Real-time Computing
Integrated Stack

Massive Scale
Sun Microsystems
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Sun Microsystems Confidential
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 Agenda

The Age of Dot-com

Sun’s E-business Strategy

iForce: Your Dot-com Edge

Sun Microsystems
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Sun Microsystems Confidential
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 Sun’s E-Business Leadership

“The network is the Over 80% of the

Market Leadership
Technology Leadership
computer”strategy Internet backbone
since inception traffic and 54% of ISPs
run on Sun
Design highly reliable,
available and scaleable 73% of E-Commerce
systems, optimized for implementations by top
networking needs 5 vendors run on Sun
(Sparc/Solaris)
Over 50% of successful
Create innovative E-Commerce sites run
networking on Sun
technologies (Java &
Jini) #1 Vendor in pre-
packaged Internet
Server market

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 Customer Priorities

• Provide predictable, reliable operations

• Provide innovative customer and content
management to increase user attraction and
retention
• Increase revenues

• Lower the overall cost of doing business

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 E-Business Strategy
Provide a complete solution stack to rapidly build, deploy and maintain
a portal for sustained competitive advantage

E-Business Success Factors

User Attraction and Retention

Revenue Generation

Cost Containment
Solution Delivery

Quality of Service
Solution Stack

Business & Technical

Services
Software Partnerships

Systems & Technology

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 Systems & Technology
Specialized Servers

Ultra Enterprise Cluster

HA & PDB

Ultra Starfire
ft-
ft-SPARC Enterprise
Ultra 6500
Enterprise
Netra Ultra 5500
Enterprise
Ultra 4500
Enterprise
3500
Ultra
Enterprise
Enterprise
Ultra 450
Tape Library
Enterprise
Ultra 60
General Enterprise
Purpose 5
A50000
Systems Storage
SPARCstorage
Array
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 Software Partnerships (Sample List)
Integrated Content Management: Security & Payment:
Applications: Bulldog Baltimore
Ariba Interwoven Entrust
ATG Vignette ISS
Broadvision Virage Trintech
iPlanet (Sun-Netscape
Alliance) Interactive Media: E-marketplace:
Intershop Macromedia Moai Technologies
Interworld RealNetworks Trading Dynamics (Ariba)
Open Market
Oracle Portal Builders: Profiling &
Autonomy Personalization:
Web/App Server: Epicentric Accrue
BEA (WebLogic) Lotus Andromedia
iPlanet [Link] (Macromedia)
Engage
Billing/IBP & P: Catalogs & [Link]
Portal Configurators: NetPerceptions
iPlanet Selectica
Just-in-time Trilogy Customer Care:
Graham
Performance: Workflow / Siebel
Inktomi Collaboration: Vantive (Peoplesoft)
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Resonate FileNet
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Lotus Veritas
 Business & Technical Services
• Programs to jumpstart customers: Financing, Pay-as-you-
grow, Co-marketing, SunTone, iForce, Start-up Accelerator
• Innovative technology programs: Capacity Planning,
Audits
• Invest and partner for professional services

Focus Area

Business Technology Web

Major •Business strategy •Enterprise •Web Strategy
•Business process Architecture •Web Architecture
Issues •Market analysis •Systems integration •Content Dev & Int.
•Legacy Integration

PS •McKinsey •Sun PS •Zefer

•Big 5 •AJC’s •iXL
Firms •Boutique •Big 5 •[Link]
•... •... •...

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 Solution Delivery

E-Commerce Portal

Hosting/Service Providers

Resellers and Web Integrators

Solution Set Solution Set Solution Set

Sun Platform
Sun Microsystems
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 Agenda

The Age of Dot-com

Sun’s E-Business Strategy

iForce: Your Dot-com Edge

Sun Microsystems
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Sun Microsystems Confidential
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 iForce: A community based
approach to rapidly create and
deliver best solutions

Agenda-Setting
Methodology

Webtone
Quality of Dot-Com
Services Proof

Robust Solutions
Computing & Services
Platform

Sun Microsystems
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 The iForce Community:
Best of breed Benefits
Solution sets

•Faster time to market

•Addressing specific
customer demands •Reduced Risk
•Leveraging rich •Standards compliance
partner community
•Scalable solution
•Delivering on
predicted demands •High ROI

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 iForce Solution Sets
• Start-up Essentials
– Sun and various software and e-Integrator partners
• Retail Essentials
– Active, Cisco, CyberSource, Interworld, Interwoven, Sun
• Portal Essentials
– Autonomy, enCommerce, Inktomi, iPlanet, Lotus,
[Link], Net Perceptions, Open Market, Resonate,
TimesTen, Sun
• SCM Services: Raw material supplier
exchange
– EDS, i2, Paragon, Selectica, Sun, Vitra, WebMethods
• Wireless Essentials
– iPlanet, Inktomi, Sun and other partners
• Certification Authority for Financial
Consortia
Sun Microsystems
– Identrus
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 iForce Solution Set: Startup Essentials
• Specifically target .com startups
• Deep hardware discounts from Sun
• Free development licenses & discounted
deployment licenses & support from
– Portal Essentials Partners
– Oracle
• Discounted e-integration services
– RareMedium, Zefer, Aztec, TIS
• Hosted options through the Startup
Accelerator Program

Sun Microsystems
[Link]/startups
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 iForce Solution Set: Retail Essentials

• Provide integrated, out-of-the-box, e-

business solution to retailers
• E-commerce solution from Interworld
• Platform/services from Sun
• Network infrastructure from Cisco
• Transaction application hosting from
CyberSource
• Content management from Interwoven
• Integration from Active Software

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[Link]/retailessentials
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 iForce Solution Set: Portal Essentials
Catalog Customer Care E-Marketplace
Order Management

Audit
Order Management
IBP&P
E-Marketing Auction

Performance Profiling & Content

Collaboration
Enhancement Personalization Management

Integration
Search

Security
Portal Essentials Mail &
Messaging

Web Server Knowledge

Application Server Directory
Management

Hosting
System Management Development Tools
ERP Database SCM
System Infrastructure Network Infrastructure Middleware
Hardware & Systems
Sun Microsystems E-Infrastructure Applications Services
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Infrastructure
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 iForce Solution Set: Portal Essentials
Catalog Customer Care E-Marketplace
Order Management

Audit
Order Management
IBP&P
E-Marketing Auction

Integration
Portal Essentials

Hosting
System Management Development Tools
ERP Database SCM
System Infrastructure Network Infrastructure Middleware
Hardware & Systems
Sun Microsystems E-Infrastructure Applications Services
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Infrastructure
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 Portal Essentials Example:
[Link]
Customer Challenges
•Quick-to-Market: Launch and build customer base by end 1999
•Personalization: Build lasting customer relationships by
leveraging customer behavior, preference information, shopping
history and other personalized data
•Response Time: Less than one second for a personalized
visitor response
•Massive Content: Support for over 1 million pages of
entertainment content with continuing stream of new content
and community events
•Platform for Growth: Open, scalable computing platform to
support rapid growth in terms of content, visitors and
personalized transactions
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 [Link] Solution
Back Office and External Systems
Others [Link]
Financial In-house Systems & Databases
PeopleSoft Institutions
Financials & Card Production Content
Administration Authorizations Management Management
Billing System System
On Sun's Enterprise Servers Payments
Solaris Operating Environment

Database Tier
Content User Information
WWW Log Data Products & Offers
Commerce Transactions User Profiles
Sun's Enterprise 4500 Servers and Oracle 8i
with Sun's A3500 StorEdge Mass Storage
Solaris 2.7 Operating Environment, VERITAS Storage Management and Failover/HA

Application Tier Search Commerce Personalization

Servers Servers Servers
(Oracle 8i (Open Market (Macromedia's
context) Transact) LikeMinds)

[Link] [Link] [Link]

Search Order Personalization [Link]
System System System Content
Sun's Enterprise 250, 450 Templates
and 4500 Server Pairs TimesTen User Profiles Product Catalog
Solaris 2.6 Operating IMDB Shopping Carts Session State Vignette
Environment Netscape Applications Server (NAS) StoryServer

Web Server Tier

Netscape Enterprise Servers (Web Servers)

Firewall & Other Security

Sun's Enterprise 250 & 450 Servers
Solaris 2.6 Operating Environment

Internet

Client Tier
Any Internet Access Device
Sun Microsystems w/Web Browser
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 Questions?
[Link]@[Link]
[Link]@[Link]

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