Moving in the Right

By Chris Preimesberger  |  Posted 2006-05-31 Print this article Print

Direction"> In a press conference announcing the moves, Schwartz said he was confident that Sun was moving in the right direction. "Our enterprise business has slowed but the rate of deceleration has leveled off," he said.
"Our software business is doing reasonably well [and] the leading indicators are good for all our divisions. We think that the [IT] market is going to continue to grow, and we want to get our fair share of it."
This is the second round of jobs cuts in the past two months. In April, Sun announced a 7 percent cut—about 200 people—in its Scalable Systems Group, which at the time was responsible for the SPARC server line. Sun has since merged its two server businesses, which also includes its "Galaxy" servers powered by Advanced Micro Devices Opteron processors. The Galaxy servers are part of a push Sun has undertaken over the past couple of years to remake itself after falling from the top ranks of the tech industry during the Internet bubble. Along with embracing the x86 space, Sun also has aggressively courted the open-source community, releasing to it such technology as Solaris and its multicore UltraSPARC T1 processor. To read more about Suns efforts to court the open-source community, click here. Sun also is making a push into the storage space, headed by its $4.1 billion acquisition of Denver-based Storage Technology in June 2005. Before the acquisition, Sun had no major-league storage products to complement its server business. By being able to bundle servers and storage as a complete package, much like IBM and Hewlett-Packard have done for years, Sun looked to put itself on a more level playing field when bidding for business against those companies. Sun has been able to bring some big-time customers, such as Disney and several Public Broadcasting stations, into its customer base by selling them products such as StorEdge 6920 array and its Content Infrastructure System. Schwartz said storage will continue to be a key focus for Sun. "Well be doubling down on areas like Solaris and StorageTek, where we have reason to believe that we can have inexpensive growth," he said. "The R&Ds all done there, and the markets for those are ramping up." King, the Pund-IT analyst, said it was not surprising to see job cuts come during such a time of change. "When a company is in a state of transition like this, it needs to do two things," he said. "One is, you need to keep the faithful happy and satisfied. … At the same time, you need to get ready to make tough decisions." Check out eWEEK.coms for the latest news, views and analysis on servers, switches and networking protocols for the enterprise and small businesses.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel