There is a very bullish article on SunMicrosystems in today's Barrons which attributes much of Sun's future potential to its
new alliance w/Intel. Entitled "Rising Sun" the article indicates that Sun is poised for a rebound since its unexpected "coup, an alliance w/Intel. Suns Solaris o.s. will run on Merced due to hit the market in 1999. Quoting various money managers, the article includes such comments as:
Until December 16, Sun and Intel were bitter enemies, now they are partners.
This new development means that Intel is moving away from the world of desktop personal computing and repositioning itself as a vendor of higher-performance microprocessors that drive more powerful Unix computers. ....
The margins in the server market are tempting for Intel: A Merced chip may sell for around $2000 while a Pentium II goes for only about $400...
Re Solaris, the article indicates that NT can run only 4 four computers in tandem effectively, Dun's Solaris on the other hand, can handle 64 computers together. "We are going to move up to 128 and raise the bar on them again," claims Suns"s Edward Zander....
"Sun is picking up market share at the expense of the other Unix players," asserts Christine Chien, an analyst for 5 managers at Zurich Kemper. ...
The article is replete with other analysts bullish remarks on Sun.
Re Java:
"So far, Java only accounts for about $130million of Sun's sales and perhaps no profits: a drop in the bucket for a company that posted $8.6 Billion in revenues and $762 million in earnings.." ..
But things are starting to change....."Java's greatest success is in giving Sun the aura of a company that has got something no one else has got," says John B. Jones Jr ..with Salomon Smith Barney. "By the end of 1998 you'll see a new revenue stream for Java microprocessors as well as software." |
