Sun Microsystems Planning To Sell Hardware Business?

By Angsuman Chakraborty, Gaea News Network
Tuesday, June 13, 2006

Spencer Katt, eWeek columnnist, speculates Sun Microsystems may be on his way to sell its hardware business and focus on software instead (read Java).

The KattPhone’s new ring tone, “Here Comes the Sun,” brought a call from a crony asking the Kitty if he thought Sun’s restructuring plans were an indication that the company is prepping for an eventual sale, as some Sun watchers have speculated. The crony was referring to CEO Jonathan Schwartz’s announcement that the company will lay off about 5,000 employees and sell some of its West Coast offices. The rumor mill sees Schwartz streamlining the company to sell off Sun’s hardware biz and concentrate on software. “I think he’s just making the hard-line business decisions everyone suspected former CEO Scott McNealy didn’t have the heart to make,” said the Furry One, adding, “Sun’s doing good things; they just need to make nice with the shareholders.”


Note: Spencer likes to refer to himself in third person as Kitty, Furry One etc.

I think the rumor may not be far off base. Jonathan Schwartz is doing what Scott McNealy failed to do. The sunny days may not be far behind (I hope).

June 14, 2006: 10:11 pm

Sun has pretty much lost its edge in hardware to intel chips. It is very hard these days to compete with Intel, unless you are already AMD, even in workstation niche, which was Sun’s forte.

Sun’s latest announcements do seem to be targeted towards steering the company in the direction of services like IBM. IBM has successfully sold its hardware division to Lenovo and now its thriving on services.

Java and Soalris are Sun’s intellectual properties. It can leverage its Java and Soalris knowledge base in services.

June 14, 2006: 4:42 pm

This is indeed very nonsense. Sun has always said that its software business (Java) which doesn’t make any direct profit for Sun, helps it sell its hardware products, that make profit for Sun.

By selling its hardware business, Sun won’t have any profit ever after…

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