Sun Micro's (SUNW) Next Failure

Sun (SUNW) had had the Java programming language around for years. It has giving the code away to try to drive adoption but even on internet websites it is not used often because it requires a good deal of processing power for the PC.

Now, Sun is introducing a new versions of Java for hand held devices, JavaFX. The company says that the code will make its easier to design applications for portable devices, PCs and TV set-top boxes.

Sun’s trouble is that it is very late to the game. “There is an epic battle under way to reach the broadest audience possible,” Jonathan Schwartz, Sun’s chief executive, said in an interview. That is stating the obvious.

The cell market is already crowded with software systems for handsets coming from open source Linux, Microsoft (MSFT), Symbian, Palm (PALM), and Research In Motion (RIMM). It has been reported that Google (GOOG) will also introduce a software system for cell phones.

Sun needs to focus on its core business, especially in servers. Its last quarter was so unimpressive that the stock fell from $6.78 in February to it current level slightly above $5.The company remains locked in a battle for share in the server market with competitors like Dell (DELL), IBM (IBM) and HP (HPQ) as competitors.

Sun does not have the resources to fight a war on two fronts at the same time.

Competing with a number of entrenched software providers in the cell phone business is not Sun’s answer to digging itself out from under its problems.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.