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Technology Stocks : All About Sun Microsystems
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To: QwikSand who wrote (9996)5/30/1998 2:34:00 PM
From: Xpiderman   of 64865
 
Intel's decision to delay the Merced will lift some computer companies and harm others.

Sun Microsystems Inc., which makes powerful servers and workstations, may benefit because the delay gives the company extra time to sell more of its $500,000 servers to companies that use its Solaris version of the Unix operating system, which competes with Windows NT from Microsoft Corp.

It also helps Digital Equipment Corp. push its Alpha chip, which is the most powerful available for workstations and servers. Intel's delay could help DEC shore up market share before the Merced is rolled out.

For Hewlett-Packard Co., the delay doesn't bode well. HP is developing the Merced in conjunction with Intel and is banking on the Merced for its server strategy, analysts said. It also stands to lose revenue in its workstation business, where it's the largest seller of the machines that run Intel chips and Windows NT.
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