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Technology Stocks : All About Sun Microsystems
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To: Chris Erickson who wrote (29)1/12/1997 8:39:00 PM
From: Robert Graham   of 64865
 
In the past, I have been involved with the use of Sun CPUs in the business environment. The company that I worked for found the I/O capability to be very inadquate for their processing needs, and inadequate even compared with CPUs that Sun was attempting to compete against. Also, their customer service policy back then (about 3 years ago) of next day service was woefully inadequate for the business segment. So much for market research. This company went to HP CPUs. The next company (a book distributor) that I worked for ended up having a systems manager that had a preference toward Sun workstations working for them. Still, when the check was signed for the costly corporate downsizng effort, he purchased three HP minicomputers. No Sun workstations were purchased.

I am thinking most of Sun's marketplace is the limited (with repect to the overall marketplace) engineering R&D environments instead of the larger and more lucrative business marketplace. This is an area that HP has been dominating. Also, through associates of mine, I see more R&D centers purchasing the DEC Alpha machine.

I suspect this is one reason why Sun moved from an emphasis on CPUs and hardware to the software running on the CPU. I belive DEC recognised this in their move to Open VMS. They discovered that in this competative marketplace, the money is to be made on the software. The hardware is just a way of getting the software in the door of a business. So companies like this set their hardware prices with a small margin. This was true with their minicomputers. With their DEC Alpha machines, I suspect they are still competing in the hardware marketplace that requires high performance workstations, which brings them into competition with Sun.
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