I think I figured it out. The market was expecting the Internet to be 2500 times larger in five years. This 2000 estimate is much too conservative.
Actually the reason SUNCOM was down today is buried somewhere in this story, for those sharp-eyed readers.
10/31 10:36A (DJ) DJ Sun Exec: Internet Will Grow 2000 Times Larger In 5 Yrs
Story 4052 (HWP, SUNW, X.PWC, I/ACC, I/CPM, I/CPR, I/ICS, I/PRF, I/SVC...)
NEW YORK (Dow Jones)--The Internet will be 2000 times larger in five years,
said John Shoemaker, executive vice president systems products group at Sun
Microsystems Inc. (SUNW).
All of the servers in the market today represent less than 4% of the
Internet's expected capacity in five years, Shoemaker said during a
presentation at the Prudential Volpe Technology Group 17th Annual Technology
and Telecommunications Conference in New York.
Sun Microsystems, which had 60% revenue growth in the just-ended quarter
compared with year-ago revenue, is focusing on shipping complete systems
rather than just a box, he said. For example, Sun ships systems that include
such things as the box, external storage, an operating system and Sun and
third-party software.
Sun, whose growth margins were hurt in the September quarter because of
increases in component prices, see memory "loosening up," said Shoemaker. He
said the company is always battling supply issues but it's nothing "beyond
normal issues." Even so, a Sun official reaffirmed that margins in the
December quarter will be similar to those of the September quarter. |
