Sun seeks to restore its sheen
Published: 08 Oct 2003 11:20 BST
"I think Sun is back on track, from a product strategy standpoint, and I think they have some very significant assets, like Java, that if they are smart they can capitalise on," said Stephen O'Grady, an analyst with market researcher RedMonk.
From Sun's point of view, that's the good news. The bad news is that erosion to its Sparc server business is undeniable -- and not likely to go away.
And should Sun continue to stumble, the wolves won't be far off. Sun hasn't "turned the corner in thinking their way entirely through a software business model... Their model is incomplete in terms of delivering software products to the marketplace," said Steve Mills, vice president in charge of software at IBM, one of Sun's main rivals.
Others see vulnerabilities in the company's management, specifically at the top. For example, though the rebellious McNealy has toned down his historically strident rhetoric in recent months, customers still want to focus less on what some call his obsession -- the evils of Microsoft -- and more on what Sun can do for them.
"We have told McNealy that he does fixate on Microsoft too much," General Motors' Scott said. "There are areas where there is real competition between the companies, but I think the competition is more on an industry-influence level."
The new Sun rising
If the Sun of old is fading into the distance, what will the new Sun look like? Perhaps the answer can be gleaned from another large computer company that was once thought to be headed for extinction: IBM.
When sales of Big Blue's proprietary mainframe and minicomputer systems began to tank around 1993, the company poured its resources into services -- rather than products -- that would help customers do business. A decade later, the IBM Global Services brand is an industry powerhouse.
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