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

To: Stormweaver who wrote (16129)	5/3/1999 8:57:00 PM
From: The Ox	Read Replies (2) \| Respond to of 64865

I disagree with your hypothesis that SUNW faces it's competition at the desktop and small server level. No one can question that SUNW faces fierce competition at those levels but that's NOT where SUNW has been making it's big dollars. Those are being made at the high end where SUNW has clearly been the dominant force lately. The % gains in the high end server market are why SUNW should be trading at a higher P/E then their historical norm, IMO. Check out who the top internet companies use for their hardware OS platforms. See how often SUNW is mentioned. Look at the reliability being offered with the SUNW solution and compare it to the others. There is a reason SUNW is the most often mentioned. JMO and good luck, Michael

To: Stormweaver who wrote (16129)	5/3/1999 9:02:00 PM
From: Eric.sun	Read Replies (1) \| Respond to of 64865

James, You are right, CSCO and SUNW are actually in very different markets. But in the internet economy, they both provide essential hardware irons(borrow your phrase) to enable the internet. While it is true CSCO is kind of monopoly and SUN has lots of competitors, that is why I said 50 percent from CSCO. So if internet grows at its present rate, both companies should benefit in the same way longer term. I noticed even some fund managers talked about these two companies in the same time now. I would not worry much about the traditional P/E range, because back then we didn't hear anything called E_commerse. It is a new world, and SUN is in a position to benefit this from God if they can execute which I still have some doubt but getting more confident. Regarding the competition, true DELL/CPQ/HP wintel hardware vendors appear to compete with SUN, but the inherent technolgy competition is between SUN and Intel/Microsoft. While the disintegration of hardware and software development between Intel and Microsoft did provide lots of cheap hardware and software to the public, but it also has the drawbacks of less stability, usability and scalibility. Wintel platform doesn't have shell for instance, wintel guys really don't know how engineers work with their workstations. And Sun's platform has the traditional advantage and it also comes down in price now as you can see, a ultra_5 costs less than 3k with 350MHz ultra_II(that is a powerful machine). In my view, Sun can keep all its traditional customers(EDA, CAD/CAM customers) firmly in hand. For those customers just want to upgrade from win 98 to NT, no doubt, that is wintel market. It is not only cheaper but also has software applications. So I would think both NT and solaris would exist in the work place in a long tome. IMHO. Eric