Thursday, December 08, 2005

Great execution

In my last post, I questioned Sun's execution of their grid service - since it's still impossible for anyone to sign up for an instant-access account via the web. But Scott and Jon's unveiling of the new T1000 and T2000 servers was literally spectacular.

I went to see Jon launch the "pizza boxes" at the Hilton Met in London. You couldn't help but come away with a deep feeling of satisfaction (as a shareholder), much akin to eating a perfectly cooked large rib-eye with a good bottle of red. This was definitely a "turn-around moment", and possibly one of Scott's iPod moments.

Here's what needs to happen now:

  1. Industry role models (e.g. eBay) need to give glowing case studies
  2. The "try and buy" offer needs to be simple and genuinely taken up
  3. The PR hype needs to be sustained, and amplified (e.g. Red Hat on Sparc?)

As other industry analysts have noted, if the "T-machines" can stabilize or even grow Sparc revenues, then the Galaxy X64 servers can drive big profit numbers. A FY2006 number of $500m or more is now a possibility. When the analysts improve their "hold", "neutral" and "underperform" opinions, expect to see SUNW climb to $5 and beyond very soon.

I just wish I had been able to buy more when they were cheaper - a nice problem to have.


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