Comments on: Sun misses analyst forecasts for revenue, earnings
CEO says economic downturn has weighed on Sun's customers and hurt its high-end businesses, but says the company will be able to weather a poor economy.
CEO says economic downturn has weighed on Sun's customers and hurt its high-end businesses, but says the company will be able to weather a poor economy.
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Wow. I thought they were retired in Florida with DEC, Apollo, Wang and Novell playing shuffleboard....
After e-mailing their Investor Relations and getting a pretty predictable pat answer, its clear that while they have some superior hardware technology, their marketing and positioning of the company is flawed.
While Sun will like to claim that they are a "solution provider" they are still a hardware company.
I agree that Sun has not capitalized on their Java investment, but one must look beyond Java and look at their other investments in to JavaDB/Cloudscape and MySQL.
My take is that someone will take Sun private and then refocus on their core business. Otherwise Sun will go the way of Cray and Silicon Graphics....
- by hutchike October 31, 2008 11:02 AM PDT
- Sun is complicated. It's like 4 separate companies. First you have the legacy big iron that's shrinking fast. Then you have the sexy new cool toys that are growing but not fast enough. There are all those Sun service consultants out there making money off support and services. And finally there's the R&D - not insignificant at $2bn per year! Taking all 4 together, you're looking at a whopping 33,000 people. Now that's just crazy. No wonder you can't make a decent profit if you're paying 33,000 people, even if you let them work from home to save on office expenses. Sun needs to cut its work force by at least 10% or it's dead within 3 years. Simple.
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