These days you don’t read or hear too much about companies deploying Sun Servers or workstations, you don’t read about the great advances in the Sparc Architecture, and you don’t read about how Solaris is powering the newest supercomputer. All of the things are what you would have routinely heard about ten years ago and through end of the dot com boom. Back then Sun was the platform of choice for enterprise computing and powering the latest web startups. Many a dotcom blew their VC funds on top of the line Sun servers to power their new next greatest thing. However, Sun has languished in light of cheap, but powerful, x86 and x64 hardware running Linux, which has virtually eliminated any advantages that Sun once had with their Sparc Servers and Workstations.
With their advantages dwindling Sun decided that they should jump on the mainstream bandwagon, by saying that they support Linux, building x64 servers, Open Sourcing Solaris, and buying MySQL. However all of these efforts seemed to be half-hearted measures to allow them to say they were doing these things, to get people in the door to talk to them about their Sparc closed source Solaris systems. They went so far as to start selling x64 workstations that ran, *GASP*, Windows.
Had Sun really supported these efforts they would have stopped selling a commercial version of Solaris and embraced a highly optimized, user friendly, custom version of Linux as their OS of choice that could run on any device they made. Furthermore, they would have limited their Sparc SKUs to the extremely high-end systems with everything else running x64. Finally, they would have embraced the consumer with gateway products to build their brand and suck new customers in, while building a hedge against market fluctuations. Does this strategy sound familiar? It should, its exactly what Apple did to not only maintain relevancy, but steal significant market share from Dell, HP, IBM, and Microsoft.
In Many ways Sun could have been bigger than Apple because they already had enterprise products, they just needed a consumer strategy, which albeit is much more difficult to create than an enterprise strategy. They could have accomplished this through an acquisition several years ago of a company like Suse, HTC, Creative Labs, or Macromedia. Anyone of these companies or any number of others could have vaulted Sun into the consumer space or have given them the tools to build really innovative consumer and enterprise level products.
Cisco, another dotcom high-flyer saw the writing on the wall about a dwindling enterprise market. This prompted them to make some strategic acquisitions to enter the consumer and small business space with Linksys and WebEx, among others. While not exactly the same, since Cisco does not make Workstations or Servers (at least until this week they did not), it is similar, they continued to serve their core market while bolstering their consumer offerings as a hedge against the separate market fluctuations.
But alas, they did not and in today’s news is that Sun is in talks to be acquired by IBM for nearly $7 Billion. However, I do not view this as bad news for either company because there are great synergies in products between the two companies. It is also not too late for IBM to still embrace a consumer strategy and get back into the workstation and laptop market that they should have never left.
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