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To: techtonicbull who wrote (114743)	10/22/2000 10:39:11 PM
From: Tony Viola	Read Replies (2) \| Respond to of 186894

They have the most popular UNIX flavor, SOLARIS which will be ported to the Itanium class of chips. TechB, Intel and Sun had a tiff and Sun is no longer working on Solaris on Itanium. Sun no longer thought they needed to be bothered because everything is going so swimmingly with them. Sun has desired not to compete with their customers as Intel does. They simply supply their customers with building blocks such as supplying ISP's and ASP. In the world the way you see it, how does Intel compete with its customers? TV

To: techtonicbull who wrote (114743)	10/23/2000 3:34:33 AM
From: Amy J	Respond to of 186894

RE: "Amy: I believe if you knew more...you would be able to make a more educated decision" -------------- Tbull, Did you know Sun's operating income is 1/6th of Intel's, even though Sun's revenue is 1/2 of Intel? When excluding investment, it appears, Sun is 1/4th of Intel's operating income even though Sun's revenue is 1/2 of Intel's. Does this mean Sunw has problems with margins? It appears, Sun's operating margins are around 10%, meanwhile Intel's are around 25%. I think Sunw has problems with margins because they are fabless and are doing costly chip designing. RE: "Firstly, Sun Microsystems is a "fab-less" chip producer" Being fabless probably hits Sunw in the margins - they have to pay someone else to build their chips. They also spend probably around a Billion to $2B on chip designing. Conclusion: I bet those chips are eating up their margins. For a company that reported $5.5B in revenue and only $500M in profit, that's not too much money leftover for them to invest into their future. Sun has great management, but their financials concern me. It appears they don't have the margins to grow their service ratio as one might expect (which is only 20:1 (CPQ:Sun) according to Rudedog). RE: "SOLARIS which will be ported to the Itanium class of chips" Who says this? Amy J