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Technology Stocks : All About Sun Microsystems

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To: Michael F. Donadio who wrote (24260)12/12/1999 6:20:00 PM
From: uu  Read Replies (6) of 64865
 
Hi Michael:

Re: Sun not wanting to standardize Java anymore

This makes perfect sense at this time! It is sort of like, if you dont have a headache why bother taking a pill! Three years ago - or even 2 years ago - it did make sense for Sun to create the smoke and mirror of pushing for standardizing Java. Because of all that smoke and the industry's anticipation for Sun's push to go through (after all they are the inventor so their words carry a lot) Sun's Java started becoming the de facto standard. At this time practically all internet based applications are written with Sun's Java in mind. Therefore if something is already the de facto standard why on earth spend the time and energy pushing for its official standardization?! It is sort of like Microsoft pushing for its operating system to become the industry standard for PCs!!

Anyway, Sun's server centric computing model has been a success beyond even their own wildest imaginations. And if anyone doubts this I ask to pay attention to TV commercials the next time you see a prime time show! They all are mostly about .COM companies!! Keep in mind Java was, is and will continue to be just a baite for Sun to sell its servers. I was at Exodus Communications the other day. This is the Company that provides web hosting for practically every mom-and-pops .COM Company from hotmail to yahoo, to Ebay to joeCool.com! Their data data centers in Santa Clara, CA are already filled even before they are finisihed building them! They lease 2 small tiny racks holding 8 servers for about $3800/mo! Not a bad business at all! And guess what as I was getting a tour of their data centers I noticed practically 90% of servers used by most of the .COM companies leasing such servers are made by Sun! It was amazing!

Yes, Sun has succeeded in its use of Java as a baite to expand its hardware side business. And the stock does indeed show this success. Sun now has a market cap that is passed that of HP, and because of that in my view it is extremely overvalued beyond wildest imaginations (at least mine)! But then again you look at the market and show me a stock that is not overvalued! Despite this extreme overvaluations I am just regretfull that I sold most of my shares earlier. Although I still have some from 4-5 years ago, still it is no where near what I had at what point about a year ago. But I can not complain about making money even though a little bit more greed could have made me a lot more! Hopefully LSI Logic will do what my conservative greed prevented me with SUNW!

Regards,

Addi Jamsshidi
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