Wed, Feb 14, 2001 EST
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Can Sun Outshine Microsoft?

Fox Market Wire

NEW YORK — Sun Microsystems is promising to make logging on to the Internet even easier. Their seamless new project is called Sun-1. But Microsoft is not far behind; they are set to unveil a very similar product.

Fox News Channel's Neil Cavuto talked to the CEO of Sun Microsystems, Scott McNealy, about the dueling computer giants and other matters on Your World.

Q: What do you make of the new attorney general, and the posture he may take on Microsoft?

McNealy: Well, you know, I can't comment on that. I have never spent time or talked to him about this topic, and I have not heard any comments he has made on the case.

Q: If the government drops the case how would that effect you?

McNealy: Well obviously, the anti-trust laws would not be enforced, but it would change the ground rules under which we operate too. I think that the anti-trust rules in the United States have been there for a hundred years and have served the United States very well. It's created the most competitive economy in the marketplace. I think it would be a little bit of a set back for the market economy to not have the competition rules in place and enforced like they have been for a hundred years.

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Q: I step back from all of this, and I realize with their open environment strategy— Microsoft has a full steam ahead strategy. We will attack Scott wherever the heck he is, and be the champion of the net and crash his party by spoiling his announcement about Sun 1. What do you think?

McNealy: Do you think that's the case? I think they are busy chasing Sony games, and chasing AOL with MSN. They are chasing some tough hombres out there. But we have been chasing network services since computers back in the early '80s and doing things like Java and network service operating systems. We have been doing this for many, many years, and we have Sun-1, our most recent instance of providing and architecture for the network-computing world.

Q: Business looks fine, but the big concern on Wall Street is—you are way off of your highs, companies are scaling back, who is going to buy?

McNealy: I think our shareholders are pretty happy. In the long-term, I also believe that the Internet infrastructure is not even in its early day. We are still walking up to the batter's box in the first inning. The real issues here are what we do with energy costs, and the fact that we have interest rates cranked high on top of the energy costs.

We will see a quick rebound in the economy if we can do what President Bush is pushing in terms of a tax cut, returning money to the people that earned it. We also need to fix energy policies and keep interest rates down with a policy in place.

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