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

To: David Kelly who wrote (15629)	4/22/1999 6:27:00 PM
From: JavaGuy	Respond to of 64865

The margins comment is a good point... >The margins are being driven razor thin like the desktop market and >clone makers are popping up everywhere. I have read in at least one >trade magazine that some of the big manufacturers are reconsidering >their NT server business. Part of the problem is all PC-server companies rely on INTC's (and MSFT's)technology that is 2 - 3 years behind Sun's, 64 bit & scalability (BTW, clustering is NOT scalability), and Sun is not waiting for INTC to catch up. So these guys are all selling basically the same system. They are not innovating, just reselling. So the company that wins is the one that is willing to bleed the most. Not a happy position to be in. Companies also need to build a support/consulting organization around this type of business as well, or farm it out. Tough to do when margins are so slim for the boxes, and they have to rely on INTC/MSFT to supply full technical documentation. Try having a "PC guy" find where in the NT source code some function resides... Support contracts can be lucrative, but ramping up can take a while. I could go on for days...but I gotta get back to work. Cheers JavaGuy