MICROSOFT

Microsoft's ambitions are anything but small. The world's #1 software company provides a variety of products and services, including its Windows operating systems and Office software suite. The company has expanded into markets such as video game consoles, interactive television, and Internet access. With its core markets maturing, Microsoft is targeting services for growth, looking to transform its software applications into Web-based services for enterprises and consumers. Microsoft has reached settlements to end a slew of antitrust investigations and lawsuits, including agreeing to uniformly license its operating systems and allowing manufacturers to include competing software with Windows.

While desktop applications and platforms remain the cornerstone of its operations, Microsoft has inexorably expanded its product lines, which include video game consoles, enterprise software, computer peripherals, software development tools, and Internet access services.

SUN MICROSYSTEMS

When it comes to network computing, it's hard to find an area where the Sun doesn't shine. Sun Microsystems is a leading maker of UNIX-based servers used to power corporate computer networks and Web sites. It also makes workstation computers and a widening range of disk- and tape-based storage systems. Unlike most hardware vendors, Sun makes computers that use its own chips (SPARC) and operating system (Solaris). Its software portfolio includes application server, office productivity, and network management applications. Sun also developed Java, a programming language for creating software that can run unchanged on multiple operating systems.

Sun's software division develops application server software that competes with offerings from BEA Systems, IBM, and Oracle. Sun's OpenSolaris project, launched in 2005, made Solaris available on an open-source basis. Late that year Sun announced it would also provide its Java Enterprise System, Sun N1 Management software, and development tools for free.