Sun Microsystems has had a rough month. This is a little review over the actions from the company and what there are planning on doing to recover from all the troubles.
These days, any news about Sun Microsystems seems decidedly glum.
Last week, the company reported a $1 billion tax charge and warned of a significant quarterly loss, an announcement that financial analysts seized on as evidence that Sun's core server hardware business is losing out to cut-rate competition from Intel. Then, Merrill Lynch analyst Steven Milunovich issued an open letter Thursday to Sun CEO Scott McNealy, urging him to cut expenses through additional layoffs to avoid becoming "irrelevant to most users, and eventually acquired."
But even in the face of this barrage, industry veterans say the company is hardly on the verge of collapse.
In essence, technology analysts and customers say, there are two Suns: One is the financially stressed company that depended excessively on Unix servers, became bloated on dot-com sales, hired more workers than it needed and, admittedly, signed too many expensive real-estate leases. The other is the technological innovator--known for spawning networked computing and Java--that is driving the latest industry advances in hardware architectures and on-demand systems.
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