Scott McNealy Remains Confident about Sun's Position Sun CEO Discusses Data Centers, Financials and More in Interview
Computerworld.com recently published an interview with Sun's CEO Scott
McNealy, touching on everything from the data center and R&D to
competitors and even the current SCO/IBM/Novell debacle. McNealy
conceded a point or two, such as Sun's high cost structure, but overall
defended the way Sun is positioned as well as its plans for the
future.
McNealy began with a description of Sun as an all-inclusive data center
provider. Specifically, he pointed to the reference architectures that
Sun offers to help customers solve specific data center problems. He
also stressed the point that Sun offers user-visible interfaces that
are both open and adopted.
A question on converged systems prompted McNealy to remark on how the
N1TM control panel should make things like different virtualization
engines invisible. McNealy also explained how recent acquisitions such
as Pirus, CenterRun and TerraSpring all fit into N1: "They are all
about virtualizing and provisioning CPUs, disk drives, switches and
services."
Sun's current expenditures on research and development (Sun spent 16
percent of its revenue on this last year) have prompted some industry
analysts to question whether Sun has its priorities straight. McNealy
defended Sun's investment, "Sixteen percent is high by historical
standards, but I have not yet had a customer say shame on us for doing
all that great invention and innovation. We've got a very, very strong
cash position." He goes on to describe the recent changes to the
SolarisTM 10 Operating System (Solaris OS), UltraSPARCR IV,
UltraSPARCR IIIi and Opteron products as all being well worth the
expense.
When questioned on Sun's finances, McNealy expressed confidence at the
more than $5 billion Sun currently has in the bank. He also defended
the company's footing, "I like our position. I like our brand. I like
our product line. Our cost structure is a little high, but we're not
going to go take a meat cleaver to it and ruin the product calendar or
let customer satisfaction suffer."
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