After Sun goes out

R

Russel Harvey

- by Eric S. Raymond -

Sun Microsystems crossed the line from "troubled" to "doomed" yesterday.
This is sad news for the open-source community, and we need to think about
how we're going to deal with it. The most pressing questions are, "What
becomes of Java?" and, "What becomes of OpenOffice.org?" These are questions
that matter.

Sun's troubles have been mounting for a while. Founder Bill Joy's departure
was an ominous recent symbol, but the substance of their problem is that
their hugh-margin server business is being eroded from the low end by PCs
running Linux at a rate that doesn't leave it much of a future.

Nobody should cheer the prospect of Sun's demise. Sun screwed up some major
decisions very badly, from wrecking Unix standardization efforts in the
1980s to throttling the dream of Java ubiquity by keeping the language
proprietary. But nobody should forget that Sun was founded by Unix hackers
for Unix hackers. For most of its lifespan Sun remained the archetype of an
engineering-driven company. Sun was, mostly, among the good guys; to hackers
and geeks, disputing with Sun was almost a family quarrel.

But inside Sun, I hear that talent is bailing out of the company because
they just don't believe the Solaris-will-prevail story management is
peddling. Most of Sun's techies are running Linux on their PCs at home. They
can see the handwriting on the wall.

In retrospect, the recent pronunciamento that Sun has no Linux strategy was
their final admission of failure. Sun can't run at the lean profit margins
that are all a commoditized Linux server market will support, their cost
structure is all wrong for it. They got trapped in a classic innovator's
dilemma and didn't cannibalize their own business while they had the
investor confidence and maneuvering room to do so. Cuddling up to SCO didn't
help, either.

And now it's too late[1]. Moody's has just about dropped Sun into the
junk-bond basement. The stock closed at $3.31, 15% off for the day and
falling in heavy trading. The recent product announcements have been duds,
and the upcoming quarterlies are going to be a disaster. Wall street
analysts are calling for drastic job cuts and speaking the code phrases that
mean "run for the hills!" The smell of death is in the air.

Any of Sun's people and tangible assets that don't scatter to the four winds
will probably wind up in the hands of IBM, HP, and Dell -- three companies
that have shown they do know how to play the commodity-computing game. The
SCO lawsuit probably won't be affected. Sun was the lesser-known of of SCO's
sugar daddies along with Microsoft, but Redmond can pick up Sun's share of
funding the lawsuit out of petty cash -- and it undoubtedly will.

The real question is twofold: can OpenOffice.org survive without Sun, and
where will Java land? Probably not at Microsoft; with C# in the picture, it
is unlikely that Microsoft even wants to own Java any more. I have to guess
that IBM is the most likely to shoulder both technologies, simply because
nobody else is really positioned to do it. But that, of course, raises other
worries -- is it really good for us if IBM has a lead position in
everything?
 
E

Erwin Moller

Wow,

I am just a simple coder and didn't know Sun was so deep into it.
This is really bad news.

bad bad bad.

Regards,
Erwin Moller
 
B

Brad BARCLAY

Russel said:
The real question is twofold: can OpenOffice.org survive without Sun, and
where will Java land? Probably not at Microsoft; with C# in the picture, it
is unlikely that Microsoft even wants to own Java any more. I have to guess
that IBM is the most likely to shoulder both technologies, simply because
nobody else is really positioned to do it. But that, of course, raises other
worries -- is it really good for us if IBM has a lead position in
everything?

I seriously doubt if IBM will take on OpenOffice.org. They had a
chance to own it back when it was StarOffice, and their main version was
the OS/2 one. The deal fell apart because they didn't want to produce a
product that competed with their new Lotus division's SmartSuite.

What with all of the historical baggage attached to the product for
IBM, I doubt if they'd get involved with it at this point.

Brad BARCLAY
 
G

Gwood

I for one had hoped that Sun and IBM would combine forces against the Borg
to offer a real alternative the the dotNet incursion.

I hope that your doom and gloom evaluation is premature.
 
P

Phil Hanna

Sun Microsystems crossed the line from "troubled" to "doomed" yesterday.
This is sad news for the open-source community, and we need to think about
how we're going to deal with it. The most pressing questions are, "What
becomes of Java?" and, "What becomes of OpenOffice.org?" These are questions
that matter.

In my view, Java doesn't need corporate ownership -- an ANSI standard
with the JCP can handle defining the language and libraries, and an
open source framework can provide all the development. Vendors can
supply their own packaging, tools, and support, similar to the way Red
Hat and others package Linux competitively. Sun's demise would be
inconvenient but hardly a death blow to Java.
 
H

Harald Hein

Russel Harvey said:
- by Eric S. Raymond -

A typical Raymond writing, extremely exaggerated. I wish that guy would
get his facts right before writing. He has done as much damage to the
open source / free software community over the years with his writings
than he has done good to it.

Sun was rated down by Moody's from Baa1 to Baa3 on 1st of October. A
Baa3 dept rating is still above(!) junk rating. Statistically 0.15% of
companys with a rating in the Baa category default. In other words 15
out of 10000 companies with a Baa rating default.

If it would be the best junk rating (Ba) it would also not be a reason
to panic. Statistics say 1.21% of Ba rated companies default. Any kind
of a C... rating is something different. Around 25% of companies rated
with some kind of C... rating default.

But still, if a company defaults it doesn't mean the company is
history.

Of course, if you are an investor, an Aaa rated company (0.00%
defaults) is saver for your money than a Baa rated company. But a Baa
or even a Ba rating does in no way mean imminent unpreventable death of
the company.

Followup set.
 

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