Moving in the Right
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.This is the second round of jobs cuts in the past two months. In April, Sun announced a 7 percent cutabout 200 peoplein 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.
"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."