New UltraSparc outsells older Sun CPU
January 16, 2002, 4:40 p.m. PT
SANTA CLARA, Calif.--More than a year after its introduction, Sun Microsystems' UltraSparc III chip passed a key milestone, becoming the most widely shipped Sun processor.
(http://news.cnet.com/news/0-1003-200-8507916.html?tag=cd_mh)
It's interesting to note that Sunw still is focused on products and not expanding aggressively into the Service business.
From the article:
"..."I'll take revenue where I can get it, but that's not where we're taking the company. This is a products company," Zander said. Services aren't a great businesses because they have low profit margins and require lots of employees, he said. Indeed, O'Neal said Sun's services group has 12,000 employees, more than 30 percent of Sun's 39,000 total work force..."
IMO Zander fails to realize that Service revenue is a stable and predictable source of revenue. However, with 30% of their work force dedicated to services is probably a good mix.
EKS |
