Sun Microsystems was the darling of the dot-bomb era. Every emerging technology company felt that they had to have a bank of Sun servers offering up web pages. Sun was so successful that it’s stock price was 10 times greater than it is today.
Sun recently made changes at the top with founder Scott McNealy stepping aside. The new CEO, Jonathan Schwartz, has made some deep cuts in personnel and spending, but I don’t believe it’s enough to turn the company around. Sun is in a commodity business and it doesn’t have the critical mass to stay on par with the likes of HP, IBM, and Dell. In a manner similar to that experienced by previous mid-sized computer companies such as Silicon Graphics, Digital Equipment, and Data General, I predict that the sun is going to set on Sun.