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Technology Stocks : All About Sun Microsystems
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To: Rink who wrote (63903)7/12/2006 5:49:22 PM
From: bigpictureinvestor  Read Replies (1) of 64865
 
Rink -

While there may be many who would agree with your overall message, I disagree with: "Niagara is a complete niche processor that is not gaining that much traction."

True, the first release of Niagara is not suited for floating point intensive applications because it shares a single floating point unit among eight CPU cores, and it is not suited for desktops because it needs to run a larger workload than typical desktops do in order to show its value.

But it's ideally suited for things like web servers, application servers, database servers, etc. and sits in the sweet spot for corporate IT: small to medium enterprise servers.

It's also true that it did not meet Sun's own outrageous expectations for sales in its first six months. But because it provides much better price performance than any other mainstream system out there, and three to five *times* the throughput/power of anything else out there (in an environment of rapidly increasing energy costs), it has gained significant traction among Sun's partners and customers who still use SPARC. They are not about to convert to Linux/Intel and sacrifice these advantages.

It's rare that a product stops large scale, industry-wide momentum in its tracks, but this product seems to have done that.
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