Sun's executive vice president of software, Jonathan Schwartz, has just become the company's president and chief operating officer.

Schwartz, at just 38, thus rises to the post last occupied by Ed Zander (now CEO of Motorola) - in a resounding endorsement of his energetic efforts over the past 18 months to reshape Sun's overall software strategy. (Sun stock gained 44% last year after having declined for three straight years pior to that.)

Sun says that his successor as EVP, Software Group, will be named shortly.

"I'm excited to announce Jonathan's appointment to president and chief operating officer," said McNealy, in his official announcement of the appointment today. "Jonathan has demonstrated a passion for disruptive innovations that unleash new customer value, creating new opportunities for Sun and altering the IT landscape."

"He brings strategic and operating experience, and inspirational leadership to this role that will drive Sun to growth and profitability. Today's announcement demonstrates the depth of the bench at Sun and our continued succession planning," McNealy added.

As for Schwartz himself, he said:

"Sun Microsystems has consistently demonstrated itself to be one of the most important technology companies on the planet. I'm looking forward to continuing a long history of disruptive innovation as we start a new beginning. It's an honor and a privilege to be associated with the talent, commitment and passion here at Sun. I look forward to working with the entire organization as we continue our role as the driving force in Network Computing."

It must be a very good omen that on the same day as this appointment is being made, Microsoft has agreed to pay $1.6 billion to resolve its legal disputes with Sun, even though the company's losses in the past six quarters have totaled $3.84 billion.

"Our companies will continue to compete hard," Steve Ballmer, Microsoft's CEO, said today. "But this agreement creates a new basis for cooperation that will benefit the customers of both companies," he added, continuing: 

"This agreement recognizes that cutting edge R&D and intellectual property protection are the foundation for the growth and success of our industry. This is a positive step forward for both Sun and Microsoft, but the real winners are the customers and developers who rely on our products and innovations."