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07/21/04 6:18 PM

#40296 RE: I_banker #40291

banker, Re: I think Sun believes they can offer a Solaris product for the same cost as Red Hat Linux, but which is far superior and that entrprise customers will flock to it.

Something to ponder:

RHAT is a company with $140.52M in revenue over the last 12 months, and a $2.91B market cap.

SUNW earned $11.18B over the last 12 months and has a market cap of $12.61B.

With a Linux strategy like you describe, Sun may lose more than they gain. Their hardware sales are bread and butter, but they are dropping substantially every quarter. They have already dropped nearly 40% from 2001 to 2003, and they continue to lose market share. SPARC is uncompetitive, and they have minimal share in the x86 server space. Maybe you're right that Solaris is their last hope, but even after such a move, SUNW will be a very different company.