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Open Source: Sun's Only Bright Spot?
Sun reported a steep loss for the ending quarter. Sales dropped 10.9% to $3.22 billion. Overall server revenues were down 14% and storage revenue slipped 13%. That was actually worse than the loss predicted by most analysts, but much of the loss involved restructuring costs. Chief Executive Officer Jonathan Schwartz has cut 6000 jobs and has shifted focus to lower cost products.
After this news plus a lot of down-and-out stories recently about Sun Microsystems can there be any good news? Actually buried in Sun’s fiscal results are numbers that show that software sales jumped 21 percent year-over-year.
Matt Asay of Alfresco commented on reasons for why Open Source may ultimately be what Sun needs to recover from its slump:
– Open Source has buzz and the fact that Sun is doing it has attracted positive attention.
Matt says that doing so has identified Sun is positioning itself as a low-cost, high-performance leader
– MySQL and Sun’s Open Storage products are competitive products that people want and people are paying for services around them
– The Open Source distribution where users to ‘pull’ product by downloading and testing. This helps identify serious leads more efficiently and cheaply in the sales process
