Sun"s grid plan, meanwhile, calls for selling compute cycles. However, this has run into roadblocks. "If I want to sell you time on our grid, the government claims that delivery of computing as a service is actually the delivery of a weapon," so all customers will need to be notarized, he said,

Schwartz also rejected the notion that Java has not been a moneymaker for Sun.

"First of all, we"re making money with Java now," Schwartz said. Java gives Sun the ability to sell systems, services and technologies, he said. Citing 700 million handsets running Java, Schwartz said Sun can now deliver to the fastest growing infrastructure on the planet.

Additionally, Schwartz noted the download of 20 million Java run-times each month. "It would be interesting if Java became a platform for digital rights management because it"s everywhere," Schwartz said.

Schwartz said large-scale enterprises do not run free software; they pay for support and maintenance.

He also said the network itself must be recognized as a means of creating new value.