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

To: rudedog who wrote (35531)	9/19/2000 8:22:46 PM
From: JC Jaros	Read Replies (1) \| Respond to of 64865

Low margins, blah blah... balance sheet... --- This is going to move the nix mindshare like a Mack truck into the space MS is aiming W2k. So, two things: Mindshare dilution of MS (standards control) and <bonus> nipping at the heals of Dell with a low priced server. I noticed in Dell's recent catalog they're selling W2k servers and Linux servers side by side, same model number, same everything except the Linux box is $300 cheaper. In one case, the W2k box was $600 more because it needed MS tax and twice as much RAM. Now, there's this little Model T in the making with all of the benefits of off the shelf mass production computers with none of the the bells and whistles baggage of the PC. --- It comes up from underneath Dell and nips at their low end, putting pressure on their mid range margins. -JCJ

To: rudedog who wrote (35531)	9/19/2000 8:51:35 PM
From: alydar	Respond to of 64865

Rudedog, Some people cannot afford the big iron but want a product from a company that produces the best, most reliable and open environment. I believe that many of the low end users will graduate to the Solaris architecture overtime with this strategy. Mercedes does this with cars. You got the 600 series but you can get a 200 for what it cost to purchase the high end Japanese cars. Is the 200 series as good as the 600 or even the Japanese cars of equivalent pricing; I could not tell you. One thing I can tell you is that Merecedes sells alot of their lower end series, in volume, at a profit. This is called contribution. The margins might be lower but the volume is usually larger. It just means that SUNW is going to make more money. I can really care less about margins, to me, what really matters is that EPS is increasing at good clip. I stated in a previous post that SUNW is a great engineering/manufacturing company. I would like to add to the list that they are pretty good at marketing too. JMO, Bob.