Sun Microsystems Deep in Identity Crisis

Zardon · Jun 16, 2003, 10:29 PM

It was the leading supplier of the computer servers that fueled the dot-com boom, the Silicon Valley star whose name was nearly synonymous with New Economy chic.

But after two years on the bleeding edge of the bust, Sun Microsystems Inc. has fallen victim to the commoditization of the computers that do corporate America's heavy lifting.

Sun is deep in identity crisis as its executives try to reinvent the company. There's been loose talk of Sun as a possible takeover target, and some analysts are wondering whether Sun will ever return to the days of strong revenue growth and record profits.

These days, even co-founder and CEO Scott McNealy's industry-famous tirades against rivals seem muted.

McNealy, who declined to make himself available for this article, is more likely to be talking about cutting costs or how his sales team is now offering customers a "whole-system" approach. To many ears, such a strategy sounds strikingly similar to the mantras of International Business Machines Corp., Hewlett-Packard Co. and other competitors.

"If you've got to lag at any time, the best time is when people aren't spending money," said Larry Singer, Sun's vice president of information systems strategy. "Yeah, we've got a little execution problem, but I think we've got it taken care of ... at the right time."

Last year, Sun's revenues fell 32 percent from a record $18.3 billion in 2001. Sales are down this year, too.

Read here

WaltC · Jun 16, 2003, 11:18 PM

Now that McNealy's blown his wad attacking M$ over the past ten years SUN might get around to doing something innovative that might succeed a bit better than the "network computer" and Java. If McNealy had focused just half the energy he wasted on M$ into creative, productive channels no telling where SUN would be today. Better off than it is, that's for sure.

Jun 16, 2003, 10:29 PM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	Sun Microsystems Deep in Identity Crisis It was the leading supplier of the computer servers that fueled the dot-com boom, the Silicon Valley star whose name was nearly synonymous with New Economy chic. But after two years on the bleeding edge of the bust, Sun Microsystems Inc. has fallen victim to the commoditization of the computers that do corporate America's heavy lifting. Sun is deep in identity crisis as its executives try to reinvent the company. There's been loose talk of Sun as a possible takeover target, and some analysts are wondering whether Sun will ever return to the days of strong revenue growth and record profits. These days, even co-founder and CEO Scott McNealy's industry-famous tirades against rivals seem muted. McNealy, who declined to make himself available for this article, is more likely to be talking about cutting costs or how his sales team is now offering customers a "whole-system" approach. To many ears, such a strategy sounds strikingly similar to the mantras of International Business Machines Corp., Hewlett-Packard Co. and other competitors. "If you've got to lag at any time, the best time is when people aren't spending money," said Larry Singer, Sun's vice president of information systems strategy. "Yeah, we've got a little execution problem, but I think we've got it taken care of ... at the right time." Last year, Sun's revenues fell 32 percent from a record $18.3 billion in 2001. Sales are down this year, too. Read here

Jun 16, 2003, 11:18 PM	#2
WaltC DriverHeaven Addict Join Date: May 2003 Location: Deep in Martian soil where it's warm and the air is good Posts: 245 Rep Power: 0	Re: Sun Microsystems Deep in Identity Crisis Now that McNealy's blown his wad attacking M$ over the past ten years SUN might get around to doing something innovative that might succeed a bit better than the "network computer" and Java. If McNealy had focused just half the energy he wasted on M$ into creative, productive channels no telling where SUN would be today. Better off than it is, that's for sure.