Thursday, January 26, 2006

The Big Picture

When you consider Sun has annual revenues of $13bn, a quarterly loss of $200m isn't so bad. And when you consider Sun spends $2bn on research annually, you can see where the loss comes from.

So is the research worth it? Given that the T1 Niagara processor is world-beating at web workloads, and that its successors are on track for 2007 delivery, things are looking good for Sparc. The new Galaxy servers are gaining momentum. Sun is 6th in shipments of X86 servers, pushing for 4th by end of year. And Sun is talking about a return to Blade servers before the summer. Now that's a market Sun would like to shine in!

So maybe the research is beginning to pay back? It looks like the market is reading things this way, since the share price is holding firm despite the loss. Personally, I'm on the lookout for ZFS and new storage technology, but that's just a rumor...

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