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Strategic blunder by Sun
Sun makes hardware. Sun also does software.


Microsoft sells only software. x86 OEM's sell hardware. Combining them they sell a lot more computers than Sun. Hence Microsoft and PC OEM's can have a smaller margin on each unit.

Sun would have to make more per unit to cover their R&D budget. Hence Sun's volumes need to be equal to all the x86 vendors (almost). If the volumes are not as much Sun's product line is going to cost a lot more. Currently they are subsidizing the lower end machines with the margins they get from their high end machines. Suns' doing a balancing act. Dangerous if the equation were to change (# of high end machines to lower end machines).

So with Microsoft, Sun has a hard challenge


If Microsoft products dint have a lower TCO than *nix and lets assume that Linux became a much larger player. To the x86 vendor on installing Linux, the cost of developing Linux to the OEM is zero. Sun though gives Open Solaris for free, Sun is paying the salaries of engineers.
Hence if Linux were to have the largest market share, Sun would have a harder time matching the price from x86 vendors.

So with Linux, Sun will have a hard challenge.



Now giving the latest software on Linux, Sun is thereby making Linux equal to Solaris. With this stratergy Sun has nothing but putting itself in a loosing position.
Posted by: zzz1234567890   Posted on: 05/04/06 You are currently: a Guest | Members login | Terms of Use
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Just LPGL Java you dolts  OhMyGosh | 05/04/06
Dont be so naive  xunil skcor | 05/05/06
So what?  No_Ax_to_Grind | 05/05/06
"Solaris hardware" is not just Sun hardware anymore.  Anton Philidor | 05/05/06
Looking forward to the announcement  Richard Flude | 05/04/06
Finally  toadlife | 05/04/06
Great news  Richard Flude | 05/04/06
Strategic blunder by Sun  zzz1234567890 | 05/04/06
Sun's move makes sense to me  Feldon | 05/04/06
No, Sun has said they do not want to be a services  No_Ax_to_Grind | 05/04/06
It's becuase you have blinders on!  Edward Meyers | 05/04/06
80% done huh?  toadlife | 05/05/06
Except  Edward Meyers | 05/05/06
One more time, How does this make DOLLARS  No_Ax_to_Grind | 05/05/06
How does it make $$$$ now?  Edward Meyers | 05/05/06
Microsoft sells only software?  Grayson Peddie | 05/05/06
Like a virus  SouthernPride | 05/05/06
Are you sure you're not talking...  Omch'Ar | 05/05/06
Hmmm ....  IanX | 05/05/06
Aaaahh, it's the weekend  Expatriate US Geek | 05/05/06
So there are giving up their strangle hold on it  Boot_Agnostic | 05/05/06
Reading the posts I wonder ....  IanX | 05/05/06
You said it all when you said...  No_Ax_to_Grind | 05/05/06
Question is ....  IanX | 05/05/06
Obviously IBM thinks so...  No_Ax_to_Grind | 05/05/06
I dunno ...  IanX | 05/05/06
That's very odd.  richdave | 05/05/06

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