Sun Microsystems, Inc. (NASDAQ: JAVA) wants to make yet another strategic change in its core business, according to CEO Jonathan Schwartz. Schwartz said yesterday that the open-source and server company plans to increase its focus on storage products and services using an internal reorganization to do so.For this, Schwartz wants to merge the server and storage business units into a single unit focusing on storage and server convergence. In effect, Sun wants to sell and service more storage systems to make up for the lack of margin in its server business. At least, that's how many are reading this move. Since acquiring StorageTek years ago, this move was anticipated. It's now here.
In addition to making StorageTek's product lineup more profitable to the company, Schwartz also may be making the move to fall in line with "virtual server" trends in the information technology field. In a sense, customers don't care about buying servers or storage, but are interested in possibly "renting" a virtual server and storage system that acts as a single unit. This is precisely what Sun will try to push to customers as it slowly dumps aging mainframes.
According to Schwartz, Sun "wants to be in a position to innovate on its [customers'] behalf, at the system level, beyond the boxes -- across blades [servers], racks, disk and tape." Let's see if this recent internal reorg and change in customer philosophy will have a positive revenue effect for Sun -- something it desperately needs.











Reader Comments (Page 1 of 1)
10-04-2007 @ 8:19AM
michael schneider said...
Sun Microsystems is getting some notice. It was recommended this week on Forbes on Fox with 2 panelists giving very brief but positive comments about it. The program focused on stocks under $10 a share. Synopses of Forbes on Fox and other business block shows are available free right now in the newest (white label by red dot) Weekend Stock Review at http://www.Barrelomoney.com.
10-04-2007 @ 4:15PM
Mike said...
This ties in nicely with their upcoming Startup Camp event in NYC. For anyone interested, its free and open to the public:: www.startupcamp.org