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Technology Stocks : All About Sun Microsystems
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To: E_K_S who wrote (48150)4/9/2002 9:43:38 PM
From: techtonicbull  Read Replies (1) of 64865
 
This product release indicates Sun Microsystem's strategy of being ready to seize the market for the mid-range as well as the upper ranger UNIX based server market. There is no doubt that the earnings, and price appreciation will be rapid once there is a more accommodating environment for capital IT purchases. Will there be a massive upgrade cycle in technology? I think there will be. It's just like cellphones. How many people own the first, or second cell phone they ever purchased? Well, they might still own it but they don't quite use it. The technology has changed and the heavy, or average users of cellphones are inclined to want the lates offerings. The same applies to computer systems. What's most compelling about the server world is TCO. TCO make the most sense for corporations to move forward and make revisions in their IT systems. Remember that SUNW has not halted or significantly reduced their R & D budget. So I would imaginr that they have the next generation of chips in various stages of development already. I suspect that they will try to convert all existing clients to the US III chip products and then integrate their software upgrades accordingly. SUNW still has a big "war chest" of money in their corporate treasury and will use it to remain a "player". I also believe that they will annouce some significant alliances in the not so distant future in opposition to Microsoft. This is going to continue to be their strategy. Finally, I believe that they will win their lawsuit agains MSFT.
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