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	<title>Comments on: Why Isn&#8217;t Sun Microsystems Growing Revenues?</title>
	<atom:link href="http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/</link>
	<description>Simon Brocklehurst's Technology Blog</description>
	<pubDate>Sun, 07 Sep 2008 07:54:27 +0000</pubDate>
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		<title>By: JulesLt</title>
		<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/#comment-361860</link>
		<dc:creator>JulesLt</dc:creator>
		<pubDate>Tue, 06 May 2008 12:08:33 +0000</pubDate>
		<guid isPermaLink="false">http://www.psynixis.com/blog/?p=426#comment-361860</guid>
		<description>Ah, but the market also takes into account  the potential for future growth, and with Sun that is looking shaky.

They aren't really a services company in the way IBM are - they should be the world's biggest Java consultancy, for instance, but aren't. 

They aren't a box company, either. Do the advantages of Sun's x86 servers really outweigh a commodity box from Dell?? 

Directions : Move from hardware VAR towards the appliance computing market. At least two of our customers use appliances (servers running a single app) that are basically Dell servers running Linux rebadged by the reseller.

It's difficult to convince an end company to pay more for a Solaris system, particularly if they lack expertise to manage it, but an appliance you just drop into the network is easy to understand. Think Cisco, think 'hardware' firewalls. 

They should be making it easy to assemble an enterprise architecture out of a few purchased bits of kit.

With auto-discovery technology like Bonjour why can I not simply assemble my architecture by using a GUI to link a Tomcat based Java app with the database server at one end and load-balancers at the other?

But that, I think, has long been there problem - fantastic engineering, appreciated by a technical audience.</description>
		<content:encoded><![CDATA[<p>Ah, but the market also takes into account  the potential for future growth, and with Sun that is looking shaky.</p>
<p>They aren&#8217;t really a services company in the way IBM are - they should be the world&#8217;s biggest Java consultancy, for instance, but aren&#8217;t. </p>
<p>They aren&#8217;t a box company, either. Do the advantages of Sun&#8217;s x86 servers really outweigh a commodity box from Dell?? </p>
<p>Directions : Move from hardware VAR towards the appliance computing market. At least two of our customers use appliances (servers running a single app) that are basically Dell servers running Linux rebadged by the reseller.</p>
<p>It&#8217;s difficult to convince an end company to pay more for a Solaris system, particularly if they lack expertise to manage it, but an appliance you just drop into the network is easy to understand. Think Cisco, think &#8216;hardware&#8217; firewalls. </p>
<p>They should be making it easy to assemble an enterprise architecture out of a few purchased bits of kit.</p>
<p>With auto-discovery technology like Bonjour why can I not simply assemble my architecture by using a GUI to link a Tomcat based Java app with the database server at one end and load-balancers at the other?</p>
<p>But that, I think, has long been there problem - fantastic engineering, appreciated by a technical audience.</p>
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		<title>By: simon</title>
		<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/#comment-359258</link>
		<dc:creator>simon</dc:creator>
		<pubDate>Sun, 04 May 2008 16:56:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.psynixis.com/blog/?p=426#comment-359258</guid>
		<description>Anything could be possible after Monday, if Yahoo!'s share price goes through the floor.   As it is, Sun isn't big enough to acquire Yahoo!, even if they wanted to, because their market cap is too low.  However, there's the market is overvaluing Yahoo! at the moment, and undervaluing Sun.  In 2006, Sun's revenue was $13.8B compared to Yahoo!'s $6.9B; and Sun's profit was $473M, compared to Yahoo!'s $660m. Fundamentally Sun looks like it could be in better shape than Yahoo!: if they can just grow their top line a little bit, that should drive rapidly increasing profits and share price. 

Next week is going to be interesting from the Java perspective.  JavaOne starts on Tuesday.   There'll be a number of updates on "consumer Java", including on JavaFX Mobile.
</description>
		<content:encoded><![CDATA[<p>Anything could be possible after Monday, if Yahoo!&#8217;s share price goes through the floor.   As it is, Sun isn&#8217;t big enough to acquire Yahoo!, even if they wanted to, because their market cap is too low.  However, there&#8217;s the market is overvaluing Yahoo! at the moment, and undervaluing Sun.  In 2006, Sun&#8217;s revenue was $13.8B compared to Yahoo!&#8217;s $6.9B; and Sun&#8217;s profit was $473M, compared to Yahoo!&#8217;s $660m. Fundamentally Sun looks like it could be in better shape than Yahoo!: if they can just grow their top line a little bit, that should drive rapidly increasing profits and share price. </p>
<p>Next week is going to be interesting from the Java perspective.  JavaOne starts on Tuesday.   There&#8217;ll be a number of updates on &#8220;consumer Java&#8221;, including on JavaFX Mobile.</p>
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		<title>By: Asam Bashir</title>
		<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/#comment-359174</link>
		<dc:creator>Asam Bashir</dc:creator>
		<pubDate>Sun, 04 May 2008 15:43:18 +0000</pubDate>
		<guid isPermaLink="false">http://www.psynixis.com/blog/?p=426#comment-359174</guid>
		<description>Sorry, @3 was a joke, but suggestion to merge with Yahoo was an interesting idea, where they could keep development of Java and Solaris going, but by working with Yahoo on it's consumer related activity, it might be a way of giving Sun some experience of end-technology and GUI. Sun needs some focus, and maybe a Yahoo branded JavaFX phone OS, and some kind of Java desktop layer, could be developed that is good for both Yahoo and Sun. The same reasons for Microsoft wanting to buy Yahoo could be applied to Sun, and Yahoo can start taking on Google Apps etc.....</description>
		<content:encoded><![CDATA[<p>Sorry, @3 was a joke, but suggestion to merge with Yahoo was an interesting idea, where they could keep development of Java and Solaris going, but by working with Yahoo on it&#8217;s consumer related activity, it might be a way of giving Sun some experience of end-technology and GUI. Sun needs some focus, and maybe a Yahoo branded JavaFX phone OS, and some kind of Java desktop layer, could be developed that is good for both Yahoo and Sun. The same reasons for Microsoft wanting to buy Yahoo could be applied to Sun, and Yahoo can start taking on Google Apps etc&#8230;..</p>
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		<title>By: simon</title>
		<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/#comment-358964</link>
		<dc:creator>simon</dc:creator>
		<pubDate>Sun, 04 May 2008 10:29:49 +0000</pubDate>
		<guid isPermaLink="false">http://www.psynixis.com/blog/?p=426#comment-358964</guid>
		<description>@Mr X.  Yes.  One advantage of more investment in direct selling could be to sidestep some of problems Sun has with its salesforce, and its VARs.

@Mr Y.  Sun's Open Source strategy is a good one.  From where they are now, they can add a massive amount to their market cap by delivering on this.  MySQL was a great buy for Sun.  I know a lot of people find the Open Source stuff hard to understand, but that doesn't make it the wrong way to go.

@Asam.  I'm not &lt;i&gt;quite&lt;/i&gt; sure what the purpose would be of buying Sun, and then throwing aways its most valuable assets such as Solaris and Java ;-)</description>
		<content:encoded><![CDATA[<p>@Mr X.  Yes.  One advantage of more investment in direct selling could be to sidestep some of problems Sun has with its salesforce, and its VARs.</p>
<p>@Mr Y.  Sun&#8217;s Open Source strategy is a good one.  From where they are now, they can add a massive amount to their market cap by delivering on this.  MySQL was a great buy for Sun.  I know a lot of people find the Open Source stuff hard to understand, but that doesn&#8217;t make it the wrong way to go.</p>
<p>@Asam.  I&#8217;m not <i>quite</i> sure what the purpose would be of buying Sun, and then throwing aways its most valuable assets such as Solaris and Java <img src='http://www.psynixis.com/blog/wp-includes/images/smilies/icon_wink.gif' alt=';-)' class='wp-smiley' /></p>
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		<title>By: Asam Bashir</title>
		<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/#comment-358706</link>
		<dc:creator>Asam Bashir</dc:creator>
		<pubDate>Sun, 04 May 2008 05:26:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.psynixis.com/blog/?p=426#comment-358706</guid>
		<description>Well, ok, Sun would be a liability for Apple anyway, Apple has a solid plan and doesn't need them, but probably could use the former Sun employees...

Now that Yahoo is free, how about a Yahoo and Sun merger? Two companies, badly managed with confused strategies, but together, might just be enough to take on Google. JavaFX could be Yahoo's answer to Android, Yahoo servers and possible future cloud applications hosted on Sun hardware and software. A CEO with enough vision could make it happen, and a serious threat to Google is a good thing for the market in the long-term. No conflicts here with Apple, obviously Microsoft comes out worse...</description>
		<content:encoded><![CDATA[<p>Well, ok, Sun would be a liability for Apple anyway, Apple has a solid plan and doesn&#8217;t need them, but probably could use the former Sun employees&#8230;</p>
<p>Now that Yahoo is free, how about a Yahoo and Sun merger? Two companies, badly managed with confused strategies, but together, might just be enough to take on Google. JavaFX could be Yahoo&#8217;s answer to Android, Yahoo servers and possible future cloud applications hosted on Sun hardware and software. A CEO with enough vision could make it happen, and a serious threat to Google is a good thing for the market in the long-term. No conflicts here with Apple, obviously Microsoft comes out worse&#8230;</p>
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	<item>
		<title>By: Asam Bashir</title>
		<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/#comment-357853</link>
		<dc:creator>Asam Bashir</dc:creator>
		<pubDate>Sat, 03 May 2008 12:41:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.psynixis.com/blog/?p=426#comment-357853</guid>
		<description>After ten years of trying, when a company is still not going anywhere, fast, then it's time to rethink strategy and maybe get in a new team. As I've said before, Apple should just buy Sun, dump Solaris, and get Sun staff to develop for Mac OS X Server. Best bits of Solaris can be added to Mac OS X, Java can be dumped, and instead they should offer a WebKit/Cocoa based API for programmers to develop cross-platform applications and licence the technology to both the mobile and desktop markets....</description>
		<content:encoded><![CDATA[<p>After ten years of trying, when a company is still not going anywhere, fast, then it&#8217;s time to rethink strategy and maybe get in a new team. As I&#8217;ve said before, Apple should just buy Sun, dump Solaris, and get Sun staff to develop for Mac OS X Server. Best bits of Solaris can be added to Mac OS X, Java can be dumped, and instead they should offer a WebKit/Cocoa based API for programmers to develop cross-platform applications and licence the technology to both the mobile and desktop markets&#8230;.</p>
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		<title>By: Mr Y</title>
		<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/#comment-357497</link>
		<dc:creator>Mr Y</dc:creator>
		<pubDate>Sat, 03 May 2008 05:29:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.psynixis.com/blog/?p=426#comment-357497</guid>
		<description>Your blog addresses how Sun could sell more servers, but the company itself seems focused on open source software. While they were heading for the yesterday's shipwreck, Jonathan and the boys were spending their time buying MySQL, a typical headline grabbing move, but hard to see where the money is in open source. The management is not focusing on selling servers, so it is no surprise that they aren't making any money.</description>
		<content:encoded><![CDATA[<p>Your blog addresses how Sun could sell more servers, but the company itself seems focused on open source software. While they were heading for the yesterday&#8217;s shipwreck, Jonathan and the boys were spending their time buying MySQL, a typical headline grabbing move, but hard to see where the money is in open source. The management is not focusing on selling servers, so it is no surprise that they aren&#8217;t making any money.</p>
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		<title>By: Mr X</title>
		<link>http://www.psynixis.com/blog/2008/05/02/why-isnt-sun-microsystems-growing-revenues/#comment-356512</link>
		<dc:creator>Mr X</dc:creator>
		<pubDate>Fri, 02 May 2008 13:30:52 +0000</pubDate>
		<guid isPermaLink="false">http://www.psynixis.com/blog/?p=426#comment-356512</guid>
		<description>Good points - your right on the money with the perception that Sun doesn't equal something you would run Windows on and that it's simply too hard to spec stuff up and buy.

 Sun traditionally did everything through VAR's and them seem to be unwilling to undermine them and do much direct. For example we have support on Sun, from Sun, but we have some valued added reseller holding for us - causes no end of problems and adds no value . That's not to say VAR's don't ever add value, but sometimes you know exactly what you want. 

Then need to make a decision on this - it is too hard to buy Sun kit. Either provide software that the VAR's can use/skin or put up a proper direct channel. Apple had a similar dilemma a few years ago, and while their offerings are different, they took the right decision in massively upping their direct presence - not only can they then control the quality of the buying experience, in Apples case, the presence on the high street massively improves brand awareness.

Another weakness in their X86 range is they don't have all the nice features yet for lights out etc that SPARC do, and more importantly key applications - for example Oracle really lag on them ( if you choose solaris ). ie Oracle 11g is nowhere in sight for Solaris X64

Also in the lower end space people are looking not just for systems, they are looking for solutions - again that's not really Sun - they expect the customer to be technically saavy - quite frankly a lot of IT departments aren't, never mind companies too small to have IT people.</description>
		<content:encoded><![CDATA[<p>Good points - your right on the money with the perception that Sun doesn&#8217;t equal something you would run Windows on and that it&#8217;s simply too hard to spec stuff up and buy.</p>
<p> Sun traditionally did everything through VAR&#8217;s and them seem to be unwilling to undermine them and do much direct. For example we have support on Sun, from Sun, but we have some valued added reseller holding for us - causes no end of problems and adds no value . That&#8217;s not to say VAR&#8217;s don&#8217;t ever add value, but sometimes you know exactly what you want. </p>
<p>Then need to make a decision on this - it is too hard to buy Sun kit. Either provide software that the VAR&#8217;s can use/skin or put up a proper direct channel. Apple had a similar dilemma a few years ago, and while their offerings are different, they took the right decision in massively upping their direct presence - not only can they then control the quality of the buying experience, in Apples case, the presence on the high street massively improves brand awareness.</p>
<p>Another weakness in their X86 range is they don&#8217;t have all the nice features yet for lights out etc that SPARC do, and more importantly key applications - for example Oracle really lag on them ( if you choose solaris ). ie Oracle 11g is nowhere in sight for Solaris X64</p>
<p>Also in the lower end space people are looking not just for systems, they are looking for solutions - again that&#8217;s not really Sun - they expect the customer to be technically saavy - quite frankly a lot of IT departments aren&#8217;t, never mind companies too small to have IT people.</p>
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