Sun readies new fight with Microsoft.

Microsoft Corp. won the fight for dominance of the desktop with its Windows software. Next week, Sun Microsystems Inc. will go looking for a rematch on the Web. According to a source close to Sun and an analyst briefed by the company, Sun will announce the acquisition of Star Division, a private German software company that makes office productivity software similar to Microsoft_s leading Office suite. Sun, a Palo Alto-based maker of powerful server computers, also plans to resurrect its network computer, a very cheap, scaled-down computer that would rely on the Internet to access most of its software. In essence, the applications would reside on distant server computers, not on the machine itself. The initiatives are actually two prongs of the same anti-Microsoft strategy. Sun will emphasize application hosting, a hot new field in which companies keep software on central servers and "rents" access to the programs for much smaller fees than it would cost to buy the program outright. It was unclear how much Sun is paying for Star. Star_s local office is in Fremont. CBS MarketWatch reported Friday evening that an announcement was imminent. Star_s office suite is already available free to individuals, who can download it from its Web site. It is available in versions for every major software platform, including Java, Windows, Unix, Linus, OS/2. The suite includes a word processor, spreadsheet, database and presentation software.