Comments on: McNealy steps down at Sun
Jonathan Schwartz takes over as CEO from Scott McNealy, who stays on as chairman as the company grapples with profitability.
Jonathan Schwartz takes over as CEO from Scott McNealy, who stays on as chairman as the company grapples with profitability.
November 30, 2009 8:39 AM PST
November 30, 2009 8:32 AM PST
November 30, 2009 8:32 AM PST
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Didn't Sun post "negative earnings" (cough, cough) for something like 17 straight quarters? How many years has Sun's stock been hovering at $3-$6?
Under Scott, Sun believed it was IBM, a company capable of competing in almost all markets and shooting in all directions -- this was and is unsustainable for Sun. Their inability to monetize or profit substantially from Java is just sad. At least IBM is clear about how they intend to get returns on their ample open source / Linux investments and it's working to soem degree.
It was also clear that Sun lacked any clear strategy for several years (I still think it's cloudy). Examples: Solaris for x86? Killed. Linux? It'll never compete with Solaris. A couple years later: Solaris for x86 is reborn and it's better than Linux...of, but we love Linux too. You can even run Windows on our servers! ***?!!? Shooting in all directions desparately is not a strategy.
Sometimes it's the CEO's responsibility to face facts, define core assets and dump everything else in an effort to focus and re-grow. Scott never had the humility to do this, and that's why the latter half of his tenure was a total failure.
-Mister Winky
Almost everything Sun did in the last ten years was just to hurt Microsoft (Java, Staroffice, the Javastation, etc.). And it is OK to do things that negatively affect the competition as long as it is to benefit your bottom line. But investing money in attacking another company without any direct benefit to your finances is simply irresponsible.
It was a clear strategy. it just wasn't any good.
- When You're the Dot in Dot Bomb ...
- by Joe Blow April 27, 2006 5:27 PM PDT
- sooner or later (and usually sooner), you're gonna wind up lookin' like Wiley Coyote when an Acme bomb goes off in his face (except it looks and hurts a whole lot more than in the cartoon). Sun's problems (along with a lot of other companies, dot-bombs and stalwarts alike) were masked by the unsustainable run-up to the inevitable Bubble That Went Blah, and the precipitous drop just made things worse in these, The Dreaded Out-Years. Overcapacity making Things No One Wants or Needs Anymore is not a strategy, and the More of the Same that we're hearing from Mr. Ponytail makes me glad I don't own any Sun stock.
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(10 Comments)All the Best,
Joe Blow