Reuters: Sun growth manageable, sustained
AMSTERDAM, July 25 (Reuter) - Sun Microsystems Inc says it is having no trouble keeping up with booming demand as
companies want to know more and more about its network computer technology.
Sun last week reported a 21 percent jump in 1997 revenues to $8.5 billion, but chief financial officer Michael Lehman, in Europe
to meet customers, staff and investors, said the company had grown up in that heady environment.
``We're comfortable with this kind of growth, we've done it for many, many years. We're used to high growth, it's a wonderful
situation to be in,'' Lehman said in an interview on Friday.
Asked whether the growth was sustainable he replied: ``We had 21 percent growth in 1997, 20 percent the year before. We
don't give guidance to the outside analyst community, but many analysts looking at companies think we'll grow revenues north
of 20 percent in 1998.''
The levels of interest Sun was seeing showed that more and more companies were interested in the concept of network
computing, where users tap into computer power which is owned and maintained by parties outside their own systems.
Typically a user could have a relatively unsophisticated terminal and make use of huge databases and complex software by
using a supplier's network.
Part of the interest in Sun's products stems from its Java software, which allows users to write a programme once and then use
it repeatedly on a number of systems, letting users make the best of network computing.
``The concept of a 'thin client', or network computer, is it's like a phone, you pick up the phone there's a dial tone, you punch the
buttons and it works. All the complexity and all the works is back in the switching room,'' said Lehman.
The network computer philosopy, backed by industry scions like Oracle Corp (ORCL)chief executive Larry Ellison runs
counter to the mighty Microsoft Corp's (MSFT) conviction that envisages a full set of its software in every PC.
``It's really coming down in the eyes of customers, either you're going the high-end PC route and hope that some day in the
future Microsoft's technology will take them higher and higher...or you go the Sun route,'' he said.
Once a customer has used a set of programmes they go back to the network where they can be maintained and updated,
potentially saving PC users costly and time-consuming software updates.
``You only have to put in one application and you can serve all these users instead of having to go around everyone's PCs and
upgrading them,'' said Lehman. ``The real cost of ownership benefit is in the ease of administration.''
``We use the analogy of webtone. Pick up your phone there's dialtone. Switch on your Java station you get webtone, you get
access to what you need,'' he added.
Lehman said personal computers were not likely to disappear, and would remain essential tools for specific manufacture and
design tasks.
``We clearly see a place for PCs and workstations. I liken it to the early 1980s when PCs were about to take off. That's where
we are now with the thin client paradigm. It's going to take off -- it's just a question of when,'' said Lehman.
Lehman said Sun, which added increased its payroll by around 4,000 people to over 21,000 last year, was eager to recruit more
personnel in sales as well as engineering.
``Our products are there, our strategy is there, we haven't had to change our strategy or reinvent ourselves like some
companies, we've been focused on network computing since our formation,'' said Lehman. |
