Sun Fades – But Not According to McNeely

David Kirkpatrick received some replies from Sun executives after his latest column (which was actually one of the more positive pieces written about them lately). Sun CEO McNeely responded that all articles written about the company are negative because writers simply do a Google search and all use the same few articles as reference.

Now, I don't think Sun is going out of business. They have a ton of cash, and they still have products that people want to buy. The problem is that they still focus so much on servers, yet aren't able to differentiate themselves because of Linux competition. Who wants to pay for Solaris when Linux is free? Sun has started offering Linux configurations, but I think their prices will continue to be lowered, which will eat up the margins that used to make Sun so attractive. They seem to be investing more into software, which is a good move for them, but products like StarOffice just aren't catching on like investors had hoped. McNeely is a bright guy, and he obviously thinks Sun has a good future, but I wonder sometimes if his optimism is grounded in reality.