Is the Bulk muscle or fat?

Implications: 1) Sun is better positioned today than in the last three years.

2) No longer stepping on their own shoelaces.

3) In IBM's shadow.


Analysis: High Performance Computing (HPC) is not new for Sun.  I doubt they will unrail IBM but what I do see is a old dog that has the potential to get back into the game and start realizing a return on their high R&D spending.

Sun has always had vision.  It was one of Scott's strong points.  Their woes were in execution.  This has changed.  Their dedicated to the channel model again has gained a lot of traction with the resellers.  This gives them excellent representation in the market.   Sun's management comes off as focused and dedicated and they have succeeded in bringing the message to the front lines.   Sun has also recommitted to open architecture and as a result receives strong developer support and as a result drives application development around Sun’s platform.  Their position and success in HPC helps position them as a key core infrastructure contributor in the advancement of global application solutions.  Sun’s recent initiative to open source its OS and processor technology position it well in the next six to eight quarters.

Their latest technology developments in low heat/low power systems coupled with client incentives and channel marketing program has reestablished strong client interest. 

Related to HPC, Sun’s investment in software as a service and their advancements in grid technologies position it well as the industry evolves to a service-oriented architecture. 

But then we have IBM - IBM's dominance in HPC, market leadership in blade technology, virtualization, grid computing and recent advancements in also running cooler and lower power consumption systems will be Sun's biggest obstacle now that they have finally stopped tripping over themselves inside.