End of days for Sun
August 14, 2009 —
(Page 1 of 3)
Sun Microsystems passed away on July 16, 2009. On that day, the company's shareholders voted to accept the merger agreement, proposed by Oracle, to purchase the company for US$5.6 billion, or $9.50 per share. Sun's CEO, Jonathan Schwartz, and its chairman of the board and cofounder, Scott McNealy, were not present for the shareholder vote.
Only nine years ago, Sun's stock was at $257 per share, with a market cap of almost $100 billion, and the company was making its own multi-billion-dollar acquisitions. So how did it all go bad? Sun executives would not comment for this story, but sources say that the company’s downfall came thanks to bungled acquisitions and an inability to turn technological innovation into reliable streams of money.
“Sun Microsystems is the Jack Kevorkian of technology acquirers,” said Bill Roth, former group manager at Sun from 1997 to 2003, where he supervised the launch of Java EE and Open Office. He said Sun frequently squandered acquired technology, and that its failure to address this pattern led to its ultimate demise.
“Look at all the acquisitions Sun made form 1996 through 2006, and I think you'll see that two out of the 40 did not fail. One was the piece they bought from Cray [in 1996 Sun purchased the Cray Business Systems Division from Silicon Graphics, and used the technology to create a new backplane board for its servers], the other you could argue was StorageTek,” said Roth. He highlighted the company's $2 billion purchase of Web server producer Cobalt Networks as symbolic of botched acquisitions.
Cobalt was a hot property in 2000 when Sun purchased it. Cobalt made one of the first dedicated commercial Web servers, but when Sun acquired Cobalt, it imposed supply chain restrictions that forced the smaller company to use Sun's hardware providers. As Cobalt was an Intel-based platform, Roth said that these supply chain restrictions resulted in a nine-month period after the acquisition during which Cobalt couldn't produce any of its servers for sale. In that time, the company's slim market lead was lost.
Related Search Term(s): Sun
Share this link: http://sdt.bz/33680
Most Read Latest News Blog Resources
Taking enterprise architecture to the business side
Startup Corso is bringing out a cloud-based planning platform that ties into business plans
|
|
Top five apps to manage your workload
Web applications offer new ways to track your “to-do” lists
|
|
ComponentOne Releases a Collection of 40+ UI Widgets Powered by HTML5 and jQuery
ComponentOne has announced the 2012 release of Wijmo: a kit of UI widgets for HTML5 and jQuery development
|
|
Zeichick’s Take: Looking for the best of the best of the best
It's time once again for readers to send in nominees for the SD Times 100
|
Taking enterprise architecture to the business side
Startup Corso is bringing out a cloud-based planning platform that ties into business plans
|
|
Top five apps to manage your workload
Web applications offer new ways to track your “to-do” lists
|
|
Not so fast when it comes to testing in the cloud
Developers face outsourcing, virtual lab management and mobile devices as obstacles
|
|
Xceed releases UX-focused suite for Microsoft’s WPF
"Blendables" helps match user experiences to developer visions
|
Are you at risk for burnout?
Burnout is a severe problem and it can strike at any time. Here's how to tell if you are nearing the edge.
|
|
Agility, mom, and apple pie
If we're to evaluate the state-of-the-art in software development, we should start with the values espoused in the Agile Manifesto.
|
|
RIM woos developers with free tablet
How do you get more apps ported to the BlackBerry PlayBook? By giving every developer a free tablet, of course!
|
|
GitHire: Use Headhunters to Find Your Perfect Programmer
Are you a hiring manager tired of scouring the job boards? Check out this new service that will find 5 people interested in your jobs.
|
The Hidden Costs of Software Licensing
Moving beyond paper-based software licensing to more flexible, software-based licensing is a business decision. There is a growing trend tow...
|
|
Case Study: You May Need a Development Mechanic
As a contractor for a major financial player in Germany, SOBEGE, a German-based consultancy specializing in embedded IT and web services, wa...
|
|
Ensuring Software Quality at a Major International Bank
One of the world’s leading international banks has adopted AgitarOne technology for delivering generated unit tests for their Java software...
|
|
Load Testing Adobe Flex Applications
Adobe Flex applications may be different from applications you’ve worked with before. For classic HTML web applications, the server does all...
|