It is not often that I am right. I am right so infrequently that I have to draw attention to myself when I am right. This is going to be one of those times.
I have been predicting for years that Sun Microsystems is going to go under. (Not that I am bitter or anything about the Microsoft trial.) Yesterday Sun crossed the line from "troubled" to "doomed" and its share price dropped over 15% to prove it. Also Moody's has just about downgraded Sun into the junk-bond category.
This is not good news, I don’t like to see major companies go under, epically ones co-founded by a friend and mentor. I think that the reason why Sun is in such trouble is that they have absolutely no Linux strategy. Also contrary to popular belief, Linux is a threat more to Sun than to Microsoft. Linux is based off Unix and makes it obsolete. Sun sells Unix. Linux runs on low end machines. Sun’s Unix does not.
Sure Sun will truck on with layoffs, restructuring and loans, but it is basically done. The Sun has set. Next stop on the Linux train is Windows, watch out Bill…
