Jonathan Schwartz, the CEO and President of Sun Microsystems was the guess speaker on the GigaOm show this week. He helped the company earn $3.615 billion in revenue for 2008 fiscal Q2. This was an increase of 1.4% compared to last year’s second quarter results of $3.566. Sun is a company who address networking marketing. Known as open office and Java, or a systems company. Java reaches billions of people and is a very simple model. He compared Pets.com, which is a former dot-com enterprise that ceased operations in November of 2000. Sun was a hardware or box company but they aren’t a box company. They basically want to expand by touching millions of people, if you touch them once then you can reach out and serve them with other products. They are a systems company, which basically means they have to worry about the client’s side, as well as the networks side of the system. Sun provides Amazon type programs. He makes it clear that they are not a server company they are a systems company.
ZFS, which is a system for managing files and data. Zettabyte File System, which was given away for free to gain customers. Jonathan mentioned how in 2007, Sun spent 14.5% (2.0 billion) of its total revenue on research and development. Innovation goes were people can make money. The U.S, online advertising market is expected to reach $50.3 billion in revenue by 2011. There is less innovation going into the networking. Sun basically allows the customer to get the product of choice, if you like it then you purchase it if not then you return it.
Tuesday, April 15, 2008
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