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Microsoft has been less offensive to McNealy and Sun ever since it forked over about $2bn to settle disputes, agreed to an interoperability pact and helped chuck Windows on Sun servers. Now the companies plan to expand their mutual admiration society via an Interoperability Center. Sun will send a bunch of servers and storage boxes up to the Redmond-based center. Engineers from both companies will work on testing Microsoft's server software with the gear. We're told that such work could lead to breakthroughs in 64-bit database technology and amazing e-mail servers.

The gorilla in this nascent market is Google. It has been spending billions of dollars to build huge data centers, or "server farms," around the world, enabling it to run all sorts of consumer software and store enormous quantities of personal data. Combine that processing muscle with the company's dominance of web searching and advertising, and you have a juggernaut capable of redefining the software business on the media model.