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Technology Stocks : All About Sun Microsystems
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To: Tecinvestor who wrote (23484)11/28/1999 4:34:00 PM
From: Vikas Deolaliker  Read Replies (2) of 64865
 
No you are not being overly optimistic. The numbers tell the story. You need one router to support 10 servers. Even if Sun maintains its 51% market share of the servers, it will see unit volumes 5x that of cisco. The margins on server hardware as just as good as routers, but it get better the margin on the server system software is even juicier. So, SUNW should have a p/e of around 150 and market cap should approach around $300b.

All of this assuming that e-commerce takes off which is the single biggest reason for server level capital spending by enterprises.
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