$9.49
0.00 (0%)
Sun Microsystems, Inc. (NASDAQ:JAVA.DL)
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The Company provides network computing infrastructure solutions that include Computer Systems, Data Management, Support Services and Client Solutions and Educational Services.
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Strong products but terrible business acumen.Sun has abandoned the workstation market years ago to Microsoft's XP and now it's Unix servers are being threatened by commodity hardware (Dell, et al) and software (Linux).It still has a few core capabilities:1. Java - It still owns Java, but seems unable to parlay its one dominant platform into revenue. Primarily because Java was built from ground up to be hardware agnostic, and in doing so, Sun commoditized the hardware (instead of the software as it had intended).2. SPARC - it's RISC chipsets cannot keep up with the likes of Intel and IBM microprocessors.A few more years of declining market share will drag this stock under into the mid-cap range.We shall miss you!
Wow, you missed pretty badly with this...Java means there is a *lot* of mission-critical enterprise code that can run on Sun hardware. Without Java you would have seen a lot of those applications coded for a specific platform (such as ASP on Windows) with no hope of running on Sun hardware (as least when Sun was not selling x86 boxes). To the big enterprise customers, Java is a good deal. They are not locked into any one vendor, as to where they run their applications. Choice is good.Sun's message to the big enterprise customers boils down to "we aren't going to screw you". An outfit that wants to sell you first-rate hardware, software, and service (the top-rate expertise) at good prices without trying to trap you into vendor lock-in makes doing business with Sun an easy choice.How could have missing the significance of Sun's Niagara chips? Who has the fastest single-CPU is mainly important to gamers. Who can deliver the most CPU-cycles per dollar (both initial purchase and ongoing power costs) is what matters most to the big outfits. Niagara is the result of Sun optimizing the SPARC design for more throughput per dollar - and beats Intel easily.Sun offers big customers first-rate technologies, first-rate expertise, and no nasty lock-in - generally a really good deal.The question is how long will it take big customers to pick up on this message.