$8.36
0.13 (+1.58%)
Sun Microsystems, Inc. (JAVA)
CAPS Rating:
The Company provides network computing infrastructure solutions that include Computer Systems, Data Management, Support Services and Client Solutions and Educational Services.
RSS Headlines
Fool UK
Recs
Sun has good products (Java, Solaris, hardware, we'll see about JavaFX), but they're not really in a position to really benefit from them in part because none of them really dominate the competition. Their move to open source the Java and Solaris shows that they're getting a bit desperate.I think that the coming slump is likely going to hit them harder than most.
Moving to products to open source isn't a sign of desperation, it is yet another step in a long term trend to reduce the barriers for companies to adopt your software. Development shops no longer pay huge sums for for developer seats as companies quickly learned that they could reduce the sales cycle and eliminate an excuse for companies to say no.That said, I don't believe that people have yet to figure out the best way to monetize their investment in developing open source software. So the real question is, has Sun got a good working model? They do have something that software companies don't have and that is hardware. Maybe that is what will tip the balance in their favor. Time will tell.
Open-sourcing a product isn't always a sign of desperation, but I think it was pretty clear that Sun didn't want to do it for a long time. They'd have gotten a lot more out of it if they'd have done it earlier and a bit less reluctantly.The hardware and software reinforce each other here, so neither is worth as much without the other.As you said, time (and IBM) will tell.