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June 26, 2006— Jonathan Schwartz, Sun Microsystems' new CEO, has promised to soon reveal the mystery of how much money his company gets from Java—a number that Wall Street is keen to learn because Java offers Sun its most distinctive technology advantage over competitors. According to Jim McHugh, senior director of software portfolio strategy at Sun, Schwartz will be looking at three key areas to determine the revenue number. First, makers of cell phones, handheld devices, and other hardware products fork over an upfront license fee for Java and make another payment to Sun for each Java-ready unit they sell. Sun also gets cash from training developers to use Java. And the company sells its own Java tools to users. McHugh argues that Java's market position is improving among developers, citing last month's total of 25 million downloads of the software from Sun's Website—up more than 25 percent from the levels during last year's second quarter. But no matter how impressive the revenue tally that Schwartz ultimately unveils is, what investors and Sun users would really appreciate is a positive number on the company's bottom line.
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