Sun’s Challenges

If there is one company I’d like to see survive and thrive, it has to be Sun. But the challenges they face are daunting. They are getting squished between IBm, HP/Compaq and Microsoft, still quite unable to decide whether they should focus more on hardware or software. Sun has always surprised, but now, the odds seem stacked against them. Some advice from two commentators:

Cringely: “Sun can either find a merger partner to take the company out of its predicament or it can find its own strategy to achieve the same result. Either way, this is a time for Scott McNealy to literally bet the company…One way to do that is through a merger, but the logical merger partner isn’t Apple, it is Sony.”

Charles Cooper writes on the challenges facing Sun with the Linux-on-Intel combo: “With prices on Linux-Intel systems falling, the pressure is on a higher value company like Sun to justify the higher prices it charges for systems comprising proprietary Unix operating systems on RISC processors. Corporate data managers are especially anxious about reducing hardware costs. What’s more, they know the migration to Linux from an existing proprietary Unix platform reuses a lot of the existing code and skills.”


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Rajesh Jain

An Entrepreneur based in Mumbai, India.