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

To: Stormweaver who wrote (16606)	5/25/1999 8:01:00 PM
From: Vikas Deolaliker	Read Replies (1) \| Respond to of 64865

There is a reason why Sun has a high P/E if you compare with competition. In a net-appliance centric economy, the profits should flow to the server farm vendors (Sun, HP, IBM) and the service providers (AOL, Yahoo! etc.). In this new growth market, Sun is better positioned that the competition. Sun's hardware and software is designed to be highly scalable. I don't think Linus is a big threat at the high end. It is competitive on a workgroup server level but there is noone who support Linux for server farms. NT threat is real in the workstation market. But it is not yet a menace. The reason is that workstation's traditional markets of CAD/CAM/CAE still need special features which NT does not have. Also in the wintel space, where the business model is driven by volume, hardware vendors are not incented to provide a complete CAD solution. They expect the customer/ISVs to fine tune the application to the NT platform. Customers/ISVs don't always like that. They way Sun is positioned currently, it is set to grow rapidly - kind of like when it was in 1987-93.