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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: cheryl williamson who wrote (27723)	2/14/2000 3:29:00 PM
From: rudedog	Respond to of 64865

Cheryl - I mostly agree with you here - especially in the high end business. But in high-end desktops SUN is increasingly vulnerable, and discounting DELL in that space is a mistake. This is not a technology issue - SUNW spends more on R&D in a month than DELL does in a year - but rather the increasing price-performance gap which will continue to make that business less interesting to SUNW. As volumes build, the fact that high end Wintel desktops have significantly larger volume than SUNW desktops will sway an increasing number of ISVs to the Wintel platform. Don't kid yourself - those desktop apps are what drives the market, not anything special about SUNW workstations. And in the storage arena, SUNW is a realtively small player - they have virtually no business which is not captive to their server business. Look at the moves SUNW has made in their distribution channel to protect their OWN storage business... that will be a real dogfight with EMC, CPQ and IBM driving to get first the after-market storage and then the primary storage of SUNW customers. And each of those comapnies sells about 3 times the storage that SUNW does... Or perhaps competitive threats from market leaders with superior technology, big R&D and deep pockets, who in combination have more than 10 times SUNW's market share and who have expressly targeted SUNW's storage business, is not a concern to you...