McNealy: Telcos falling behind in Internet race

Intenet portals are gaining on telecommunication carriers, Sun Chairman Scott McNealy said Wednesday.

Telecommunication companies need to go beyond just providing bandwidth and look into acquiring Internet destination sites that are heavily trafficked, Sun Microsystems Chairman Scott McNealy said on Wednesday.

"I have explained to every telco that either you become a destination site, or the destination site will become a telco," McNealy said at a news conference at Sun Microsystems' Worldwide Education and Research Conference in San Francisco on Wednesday.

Internet destination sites are already gaining on telecommunication companies, McNealy said, giving as examples eBay integrating Skype's VoIP (voice over Internet Protocol) technology and Google trying to buy wireless spectrum and help build cables across the Pacific Ocean. Microsoft's attempted acquisition of Yahoo would create another behemoth that could compete with carriers, such as by combining Microsoft's technology with Yahoo's existing VoIP and messaging services.

"I think the telcos have to make sure they don't get marginalized to being just bit providers and bandwidth providers," he said. On the other hand, carriers may be able to head off Internet sites by limiting the bandwidth available to them, so destination sites may need to affiliate with the carriers, he added.

While the future relationship between telecommunication providers and destination sites is unclear, both are looking at the Internet space to reach more users and generate advertising revenue, McNealy said. "There will be some very interesting challenges of who owns the subscriber and who owns the financial and advertising rights to those individuals."

"Stay tuned, the landscape's going to change enormously here in the next 10 years," McNealy said.

While a Microsoft acquisition of Yahoo would have an impact on the Internet and telecommunications industry, one thing it wouldn't affect is the open-source community, McNealy said.

"I'm not sure Yahoo is a great driver on open-source technology. Certainly Microsoft hasn't been on the leading edge of that, so I'm not sure that will impact open source," he said.

During a speech earlier in the day, McNealy slammed the U.S. government for not being interested in adopting open-source software. McNealy said the farther he goes from Washington, the more governments get interested in open source.

Sun on Wednesday signed a memorandum of understanding with China's Ministry of Education to give university students access to a set of open-source chip designs called OpenSparc. The OpenSparc designs are based on the company's UltraSparc server chips. Sun will provide the designs to universities including Peking University, Tsinghua University and Zhejiang University so those schools can develop teaching materials.

Sun is already incorporating OpenSparc in the curricula of U.S. universities including Carnegie Mellon and the University of Texas. Sun's efforts to promote open-source technology are succeeding, McNealy said, claiming there have been 50 million downloads of Sun's open-source Java Runtime Environment per month, McNealy said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments



Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?