gwinner

Sun Still Clings to Java Dominance Pitch

Sun has created amazing hardware and software but has two problems:

1) The hardware, as McNeally wanted, was overruled internally and finally publicly admitted, should have been based on Intel and not Sparc.

2) They have never figured out how to monetize software beyond increased hardware sales.

Sun has a loyal Sparc customer base they can service for many years, but in age of Linux/Intel and "cloud" computing, significant growth will not come from Sparc hardware sales. Sun has achieved software ubiquity with Java and the acquisition of MySQL, but they have yet to articulate a credible story on how they will monetize this market position such that it will significantly impact their quarterly financials.

The stock may bounce, but longer term prospects are not so clear at this time. Caveat emptor.