Re: Food for thought...

On Dec 14, 1:29 pm, Obnoxio The Clown <obno...@serendipita.com> wrote: > Ian Michael Gumby wrote: > > > It also put IBM in an interesting position. Does IBM's IM reach out to > > Sun because they will need to port to Rock for their existing Informix > > customers on Sun or do they wait. (I dont' think its much of porting > > as it is regression testing.) > > Personally, I think Sun is the hardware vendor most likely to go to the > wall in the recession. > > But that's just an opinion. And I'm not shorting them. :o) > At roughly $4.00 a share, shorting Sun would be a costly mistake. I've put a question to their Investor Relation's mouth piece. Got back a pat answer that didn't really say anything. Sun is on thin ice, but they have the ability to keep afloat, even in shaky times. During a recession, hardware purchases are put off as long as possible. But that doesn't mean that if they can't develop a compelling story, that they couldn't sell hardware. Unlike IBM, they don't have a strong SWG or services arm. I think that they have started to see the light, but they are still a long way off. Sun does have a compelling story, however, because of the shift towards more parallelism, legacy apps will have to be worked on to tune them to this platform. Not many companies are going to spend the money to parallelize and tune for Rock unless they had a compelling reason. (There is a latent reason, but companies could delay the costs of refactoring until the economy turns.) This is why IDS could be a strategic piece to the puzzle. But will IBM or Sun figure that out? I'm not so sure. :-(