SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : All About Sun Microsystems
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Humblefrank who wrote (50586)7/23/2002 12:50:21 AM
From: Elroy  Read Replies (1) of 64865
 
Yeah, Merrill's whole "research" is just showing that in its history Sun has troughed at Xx price to book, and its above that now. That analysis doesn't take into account Sun's position now versus the early 1990's (when it troughed previously). I don't think anyone disagrees that the market for high end Unix servers is now a fight between IBM and Sun (with Sun growing that area faster) and that HPQ is essentially dead in the water there.

In my opinion the only major issue with Sun is whether over the next 5-10 years industry standard servers using Intel processors gain enough market share to relegate Sun and Unix to a niche market, or whether customers will always continue to pay more for Sun's stability and performance. If Intel-based servers are the future (like, 80% of the market in 2010), then Sun is toast. On the other hand, if Sun can continue to command premium pricing for premium quality then Sun will do fine. In order to ensure outcome number 2, the most important thing for Sun to do in these troubled times is to continue to grab market share, so they will have more locked in customers when times turn around. That's what all the leading companies in highly cyclical industries do during downturns (e.g., AMAT)

Elroy
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News