Sun Microsystems Reasons for current state of affairs

As a shareholder of Sun Microsystems I am disappointed by it current state of affairs. I feel as if was the misteps of years ago that cause the company to be in its present condition. In the past from my point of view the strategy at Sun Microsystems was to further the sales of their Solaris based servers because they were the bread and butter of the company. Their huge investments in developing Solaris operating, Java and their Sparc processor was the attracted buyer to buy their expensive, reliable and efficient server. However, it today's current economy no one buy their servers anymore because they expensive price tag. Therefore everyone questions why Sun continues to invest billions of dollars in research and development on Solaris, Java and the Sparc microprocessor.

If those products are so valuable they sell them as stand alone products that can bring in revenue similar to the way the sell their Star Office now. Secondly another problem with the company is it late ability to change with the times. For instance its insistence to use only its Sparc chips in their servers. It did change that strategy to sell thier servers with AMD chips was years too late. Also, it inability to realize that services would be a great income for the company. The to to sell its software suites for money. It was the failure to change the income producing segments. when the economy was changing several years ago.

On the bright side Sun Microsystems does sell software suites like Star Office for money and sell servers that carry AMDs chips that bring down the cost of servers which make they more competitive with the IBM, HP and Dell servers. Also, the new COO has decided to make the company a software but selling subscriptions to the software such as the Java Desktop System. My point is that the leadership of the company should have realized the changes in the demand of their customers from their expensive servers to more lost cost alternatives that ran Linux or Windows operating systems that ran Intel processor. When they realize this they should have started to use the commodity processor with cost nothing for them to develop and decided to charge for the great intellectual properties such as Java, Star Office and Solaris a lot sooner. The strategy of giving these great software packages away in the past to further their sales in the servers years ago lead to the current affairs.