A Close Observer

Sun Needs IBM, Not Vice Versa

OK, so I work at Sun. I have mixed feelings about the IBM deal falling through. On one hand, IBM buying the company was a quick way to take out the current, hopelessly incompetent senior management team. This needs to happen.

On the other hand, it was a very ham-handed way to carry out a management change. I understand that SEMA and KKR very justifiably lost faith in Jonathan's ability to show results, and they probably want their money out - even at a loss. A loss at this juncture is less risky than continuing to bet on Jonathan's complete lack of business acumen. Oh, sure, (his PR people say) he's a "visionary". But what Sun really needs is solid business leadership. Jonathan is simply unable to step up to this need. He needs to be replaced. Hopefully this will happen at today's board meeting.

Sun still has a tremendous amount of potential. But that potential won't last forever. If the Board doesn't act to bring hire an outsider with solid business sense before too long, the window of opportunity will close, and Sun will fade into history.