Sun Micro’s (SUNW) Next Failure

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By Douglas A. McIntyre Published
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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.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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