How sensible is Sun's deal with Microsoft?

Filed in archive Business on September 14, 2007

Yesterday I talked about how Sun Microsystems was changing its style business where it was patching up with old enemies in its search for more opportunities but it seems the bourses haven't taken the decision of the company in similar stride. Sun had stated that it would be selling microsoft Windows pre-installed on a number of its servers and the stock market reacted in a negative manner to this decision as the share prices of Sun which were trading in a healthy manner for the past few weeks experienced a sudden fall. You all must be aware of the fact that Sun's Solaris and Microsoft's Windows are competitors in the market.




Both companies feel that this move would help in cutting costs and allow processing to be shared across servers and as per Sun Solaris would become a de facto standard for server operating systems but the industry has not been able to digest this fact and it feels that Solaris has bend its knees in front of Microsoft. Sun won't be paying Microsoft any license fee on Solaris so it would experience a cut in its margin every time Windows is shipped on Sun server. At this moment Sun looks pretty confused to me and it doesn't know what path it should take to get back in the driver's seat.

Via bloggingstocks