Sun Posts Increasing Loss
Chromodromic writes "Sun Microsystems posted an increasing loss at a time when many tech firms are beginning to report stable or increasing earnings and stocks are looking up. According to the Wall Street Journal, it looks like Sun, the formidable peddlers of Solaris, Java, and UltraSPARC Fire servers are facing competition from measly ol' Dell and Intel. Even Scott McNealy has been reported to concede in a May 2002 meeting with top execs that Sun has to change, including building up trust with customers that have been put off by McNealy's sometimes controversial personality and Sun's reputed internal disarray which according to Merrill Lynch is indicating that Sun requires a makeover. The Merrill Lynch report was, in fact, particularly scathing and has raised a few Wall Street eyebrows."
My university's Laboratory for Computer Science did a test between a Sun machine and a IBM compatable running linux in order to see if they could justify the cost of buying new Sun machines like they always have. IIRC the Sun machine cost five times more and performed three times worse than the IBM.
This was on running code from the profs (so research code), which is mainly what the machines would be used for.
but not his outspokenness.
One, they started with Unix because it was open. Among the unix licensees the scene has the bazaar atmosphere. They should have jumped on Linux.
Also they are a hardware company and not all their hardware is great anymore. The Ultra 10's seem to crash like flies (this mixed metaphor is anecdotal and maybe you think different).
Does Java make them money?
-pyrrho
As many have noted, Sun have never formed a coherent strategy about linux. Their statements re. linux seem to be a mix of hostility, skepticism and euphoria. Also, they have a finger in every pie without a clear vision of where they want to be in a market of ups and downs. And lately they have shown that they are not above cheap marketing gimmicks either -- witness the branding of Mad Hatter as the "Java desktop system" (its actually just another linux distro.)
2 1337 4 u!
But I'm afraid they'll make up with Microsoft and not us.
Much as they have exhibited a multiple-personality disorder where we are concerned, I'll not forget the good they've done us.
Bruce
Bruce Perens.
but I do agree SUN is doomed.
I've been talking to a senior financial trader early this year, he said SUN's stock price is sky-rocketed to a point that they have to produce at $0 cost and sells for ten years to make up for the hyped value. Which is, of course, almost impossible.
Until recently I do believe SUN has already stuck one foot into its doom. As I speak we've already ruled out Solaris in several enterprise projects in favour of Linux. The cost of ownership is one factor, and the full-range maintenance supports from IBM, HP and Oracle is indeed a killer.
It's true that(don't flame) Linux has much to catch up with Solaris in enterprise deployment, but the market demand for Linux will only cause Linux to catch up fast and thus SUN's products will soon lose their market competitiveness very soon.
Today, they are the same company they were 6 years ago. With the same operating system, the same hardware, but without the cool people and in fact without much at all that is still cool. The fact that they haven't changed with the times is exactly the problem.
In order for Sun to fix itself, it needs:
- A super cool, fast and cheap workstation. We are talking a cheap 4-way (or 8-way) Opteron with a 3D display or something similar. It has to be the best bang-for-the-buck on the market with features and "cool factor" that no-one else has. McNeally should walk across the street from the Cupertino campus and ask Jobs how to make this happen.
- To re-build their reputation as the price/performance leader. This is what kept their financial engines running strong through the 90s and they need to do it again. Even if they have to sell at cost in order to build the economy of scale, they MUST do this and do it NOW. They should shift to AMD processors in a huge way until their multi-core ultrasparcs hit, they should do whatever is neccessary. Period.
- They need to kiss and make-up with IBM. IBM can make a good partner for Sun. But Sun has alienated IBM and now IBM sees them as a pesky competitor instead of a competitive partner as Sun needs them to.
- They need a new center of gravity. Java was a perfect center-of-gravity for a long time. But Java is boring now. Nobody cares anymore... Sun has hundreds, if not thousands, of beautiful research projects that are sexy and cool... These generally stay research, which is unfortunate. They need to go harvest a couple of these and revv up their PR engines..
The greatest mistake that Sun can make right now is to assume that they will "pull out" of their death-spiral by making Java Desktops and waiting for the next generation of ultra-sparcs to hit. That is exactly how they can guarantee their own death. To live, they must kill their own business and allow the new, innovate stuff that they have in their labs to rise like a pheonix from the ashes of what was killed.The reason that it can be true that 1+1 > 2 is that very peculiar nonzero value of the + operator
Some people think that Sun does have a future as a hardware manufacturer, but I think I will have to agree with the article, they can't win the fight against being squeezed out of the market by cheap Intel/AMD servers running Linux (or Windows..).
They really have to decide where they are going, and find a new way to earn money. I think Java is their best bet. I HOPE they will do something like IBM, and jump on the Linux bandwagon as the main platform for Java. Still, finding a steady and large revenue stream from that could be difficult. I suspect they get some from Websphere and the other one (forget what its called), and maybe some from selling courses in Java, but that can't be enough. If they started charging money for using Java I think they would discover that their customer loyalty would evaporate pretty quickly.
I suspect some people here on Slashdot will crow about the problems Sun is going through, but consider that Sun has actually been good for the Open Source world. If it wasn't for the fact that it is a cheap Java platform, Linux would not be as widespread as it is in the business world. Also, they gave us Open Office, and participates and even sponsors a number of Open Source projects. Ant, GNOME, Tomcat, GNUlpr, Open Office... Sure, most projects are Java related, but that is understandable and it is still more than most of the big companies have given us.
Well, if they die, it will be interesting to see what happens with Java. Perhaps they will Open Source it completely, if not out of the goodness of their hearts, then at least as a poison pill against Microsoft...
Being bitter is drinking poison and hoping someone else will die
From one minute, to the next, what is up with Sun. Some questions for Scott:
1) Does Sun support x86 for Solaris?
2) Does Sun support Linux on Sparc?
3) Is Linux good, or bad?
4) Why can't you run multple Linux VMs on a single Solaris O/S?
Simple stuff. Basic stuff. But it changes with the hour of the day and the latest "Marketing Announcement" at Sun. Why would I work with Sun as a reseller of anything if I don't know from minute to minute what they want me to pitch?
Sun provides many things that are *good* - such as Java, and Open Office. It just really, truly blows to see this power blown in such an incredible display of marketing ineptitude...
I have no problem with your religion until you decide it's reason to deprive others of the truth.
But let's see if it's at least true.
Let's take the cheapest v60x.
Sun: 1 Xeon CPU 2.8 GHz, 512 MB RAM, 36 GB SCSI HDD (10K RPM), gigabit ethernet... $2,450
Dell: _exact_ same configuration, without an OS (since I'm gonna install Linux on it too), no network switch included... $1,746
No seriously, check out the Dell PowerEdge 1600SC and set it to 2.8 GHz, "512MB DDR SDRAM,1x512 ", No OS and None in the " Dell PowerConnect Network Switches" category.
Whoops, so Sun is full of s**t again. The Dell is, in fact, one helluva lot cheaper than Sun's bulls**t.
Let's try a dual CPU, then?
Sun: 2 Xeon CPU 2.8 GHz, 1 GB RAM, 36 GB SCSI HDD (10K RPM), gigabit ethernet... $3,395
Dell: we'll take the same as Dell server as above, and bring it on par with the Sun: second 2.8 GHz Xeon, and "1.0GB DDR SDRAM,2x512"... $2,844
Whoops, again, the Dell is actually cheaper. Reality is quite different from Sun's marketing bulls**t, isn't it?
A polar bear is a cartesian bear after a coordinate transform.
I don't know a thing about Solars (other than it doesn't support all my hardware), however I used to do a considerable amount of Java programming. I didn't mind Java, but some of the bugs in it just never seem to get fixed.
I think the reason some believe Sun in on SCO's side is because they used some pretty harsh language towards IBM regarding the licensing issues. Check out the Newsforge history, and see for yourself.
It's GNU/Linux dammit!
Speaking about Java - just admit that Java has failed. Java in general and EJB specifically are not scalable down, in terms of memory usage, process startup and small project development time. That is bad for really distributed applications. Admit also that a load-balanced cluster of small and mid end servers is cheaper and faster for 80% (if not 99%) of web (and many corporate) applications. In such situations the scalability up is also not really important. So, swtch to Python, Sun. And again, if you find that Python lacks some EJB (but not Java! - Python is practically perfect as a language) features - port them to Python, help Zope or 4Thought or Twisted projects.
In both cases switch your business model to consulting, customized solutions, training - learn from the success of IBM.
Or die.
"I shall explain this by waving my hands about in an appropriate manner." -- Cambridge University Math Dept.
See: 'Suns Changing Horizon'
g =s t_rn
http://news.com.com/2009-7339_3-5087245.html?ta
"But even in the face of this barrage, industry veterans say the company is hardly on the verge of collapse."
"Industry veterans say although Sun has warned of a hefty loss and analysts are calling for drastic changes, the company has viable plans for the future."
"Speaking about Java - just admit that Java has failed."
If being the most widely used programming language, and one of the most demanded skills in the software industry is failure, how would you define success?
No, the MHz is only relevant when you are comparing the same processor type. Otherwise it's completely meaningless. The only thing that matters is how quickly it can process instructions and at what price.
What are these people smoking?
7 November 2006: The day Americans realized corruption and incompetence weren't addressing 11 September 2001
Like IBM and HP, Sun's high-end systems are still getting poor sales - all big projects are having trouble getting funding in the current climate. Sun haven't helped themselves by being late with new products - UltraSPARC IIIi was quite late and UltraSPARC IV still isn't out yet (though coming soon).
Interestingly, a high-light of the quarter was Sun's sales of low-end servers - their 1-2 way UltraSPARC systems as well as their low-end x86 systems.
The exact same 1 CPU Dell configuration as a rack mounted server (yes, the PE1750) ... $1,698
Still cheaper than Sun's crap, or? In fact, even cheaper than the desktop configuration.
If you had a reading comprehension above that of a 5 year old you might have been clued into the fact that they are comparing their servers to the Dell poweredge servers. Dell's 1750 server is cheaper than the Sun 60x, but the Sun65x is just several hundred off. I would bet that after corporate discounts the price diff would neg. and if Sun's servers perform better...). I can't stand Slashdot idiots making invalid comparisons.
Ah, a jolly good flame war. Count me in.
So lemme see. You can't even notice that the PE 1750 is even cheaper, and spew stuff like "If takes a lot more engineering(and money) to make a powerful server in a 1U form factor." Well, gee, Dell's price list says the exact opposite.
Or let's talk basic comprehension of numbers and economics. "is just several hundreds off". Well, guess what? The V60x is exactly $752 more expensive, or a whole 44.3% more expensive than the Dell. (752 * 100 / 1698, for the maths impaired.)
The v65x is even more expensive. It's $2,550 for the smallest config. So $852, or 50.2% more expensive than the Dell.
So you're advocating... what? Paying 50% extra for the _exact_ same machine, just to have Sun's logo on it? Lemming.
As for "if Sun's servers perform better...", that's a huge "if". I'd really like to see some benchmarks first. No, seriously. They're can use exactly the same CPU, motherboard and memory as any other Intel server manufacturer can use. So if you want me to believe that just a bit of marketing hocus pocus will make it run faster, you better show some numbers that prove that.
A polar bear is a cartesian bear after a coordinate transform.
> If takes a lot more engineering(and money) to make a powerful server in a 1U form factor
Where did you get that idea? 1U form factor servers are about the same price these days. Well, perhaps not from Sun, but in the commodity Intel market.. (dell)
I'm sure Sun can turn themselves around (they make _really_ nice hardware, for example) but it will take a return to core competency.
I agree with Merrill Lynch's assessment of Sun:
I think the ML analyst has it. In an article I read a while back, McNealy said that Dell wasn't a competitor because they didn't sell a complete solution and only sold systems. He said Dell had a terrific parts-distribution business. Unfortunately, he's missed that Dell's distribution is a major driver of their business, and a key reason Dell is successful today (I'd rate Dell hardware at medium-to-high, for example.)
Many people have complained about the experience of using Solaris from the desktop environment to the compiler (originally none) to the editor. In each case you've chosen to fix the problem by bundling the best-of-breed open source option thereby increasing compatibility while decreasing cost. It's time to go all the way.
The Debian project has been working on abstracting the GNU/ from the Linux by porting the distribution to other kernels. It's time for the Solaris kernel to toss off its ugly Unix wrappings and become the apex of the open source world: GNU/Solaris. With one exception: it shouldn't be free.
PC hardware is largely commodity junk and the Linux kernel still has trouble scaling to massive architectures. Consider this scenario: a small company uses PCs running Linux; as the company grows, so does its server requirements, but all its applications are running on GNU/Linux. This is where Sun steps in: all their applications can be easily, even seamlessly, ported to massive SPARC servers running GNU/Solaris. Both Sun and the open source community concentrate on their strengths, and the customers have an upgrade path: everybody wins!
Or you could stick with your administrator-hostile Unix distribution and your overpriced workstations until Bill and Linus fight over who gets to eat your sweetbread. It's all up to you.
Worse. At the higher-mid end arena Sun is behind Fujitsu PrimePOWER. Sun's never quite made it to the real high end.
Fujitsu PrimePOWER machines run Solaris. And they run significantly faster. Go look at spec.org. Go check out the CPU designs - if you want a SPARC processor that does > 1GHz and has out-of-order execution you don't go Sun, you go Fujitsu. They also have instruction retry done in hardware.
At the low end? There's Dell. And if AMD doesn't die there'll be Opteron servers (and these + Linux look very dangerous to Sun - esp since IBM's selling Opteron servers too...).
For alternative high ends - try IBM. Or if your problem can be split up - try lots of commodity boxes.