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Technology Stocks : All About Sun Microsystems

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To: alydar who wrote (63425)	11/2/2005 10:53:05 AM
From: alydar	of 64865

Hi Alydar, "My gut is telling me that this quarter was good even hardware and JES. If there is clear signs that subscriptions are accelerating that would be a huge bonus. There is alot to out for. Opteron servers sales, JES ands startoffice subscriptions, chip release dates, STK integration, and I think most importantly support contract growth rates. It should be fun!" To me the quarter was very good. Opteron sales are accelerating. JES is approaching a million subscribers. We will see the benefits of the STK purchase in future quarters because Sun now has a broader product offerring that will allow them to cross-sell more effectively. And the service/support side of the business is acclerating. Believe it or not this side margins are much greater than the product side. IMO, SUNW is copying ORCL's business model by offering support/subscriptions. Much like a cell phone, the IT industry will make its money by giving away the hardware and make their money off of support and other service options. Unfortuneatly, for investor this process will take some time but once the cross-selling and economies of scale kick in on the support side of the business we will see revenue and margin expansion. Alydar

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