Sun Microsystems:Case Studyv1


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Sun Microsystems:Case Studyv1

  1. 1. Sun Microsystems: Case Study Case Study Project Name: Sunny R Das Course: ITEC 610 Section: 9045
  2. 2. Introduction- Industry & Marketplace <ul><li>UNIX Marketplace and Industry : </li></ul><ul><li>Since the inception of UNIX in the early 1970's, this operating system framework has been utilized by various hardware vendors like Sun, IBM, HP, etc… to create their own products </li></ul><ul><li>The industry is constantly evolving and pushing the boundaries of computing by introducing virtualization and autonomic computing </li></ul><ul><li>This marketplace can be divided into two sectors (32-64 bit computing) </li></ul><ul><ul><ul><li>The 64 bit vendor offering is a high end hardware and software solution offered by SUN, HP and IBM (operating system & hardware) among others </li></ul></ul></ul><ul><ul><ul><li>The 32 bit offerings are created by UNIX software suppliers newer to the marketplace such as Red Hat, SUSE, Oracle Enterprise Linux, etc… which are installed on any 32bit Intel/AMD commoditized hardware (Dell, Sun, IBM, Egenara Blade, HP, etc..) </li></ul></ul></ul>Early UNIX Pioneers (Software + Hardware) New Market/ Followers 1960s 1970 1980 1990 2000 Timeframe IBM OS390-AIX Hardware & Software Solution SUN SPRAC-Solaris Hardware & Software Year:1986 Year:1960 HP 9000-UXver.11 Hardware & Software Year:1997 Red Hat Enterprise Linux ES Year:2003 SUSE Enterprise Linux by Novell Year:2000
  3. 3. Marketplace Competitors <ul><li>The server hardware market is divided into three sectors which are “Market Leaders”, “Challengers” and “Market Visionaries” which is the sector with the competitive edge </li></ul><ul><ul><li>The microprocessor architecture has become generic with numerous processors (Intel, RISC, AMD, etc…) to select from.. </li></ul></ul><ul><ul><li>Each server manufacturer develops their own unique product based on the microprocessor architecture </li></ul></ul><ul><ul><ul><li>64 Bit vendors usually develop their own operating systems and tools for virtualization and autonomic computing </li></ul></ul></ul><ul><ul><li>Virtualization and Autonomic computing are key competitive differentiators in the server marketplace. These vendors are considered the Visionaries. </li></ul></ul><ul><li>32 Bit server hardware is gaining market share because of the low price point for the hardware and low cost of LINUX implementations </li></ul><ul><ul><li>Since most x86 hardware vendors do not build special OS implementation for their product, consumers can choose the own OS implementation stack (i.e. Redhat Enterprise server, SUSE,etc..) at lower price points. </li></ul></ul><ul><ul><li>These newer UNIX OS (Red Hat) are able to offer some of the advanced features of the 64 bit platform in the 32 bit environment a lower prices which make it an attractive proposition for organization. </li></ul></ul><ul><li>SUN Microsystems has strategically expanded their product set to compete in each market quadrant </li></ul>Intel Chip (32bit) AMD Chip (32-64bit) RISC (64bit) Itanium (64 bit) Microprocessor Legend Market Leaders (64 Bit Market) Sun Microsystems SPARC IBM PSeries HP UX Challengers (64 Bit Market) Dell Servers HP DL Series Sun Fire X Séries Server HP Integrity Challengers (32 Bit Market) Market Visionaries Complete Hardware & Software Solutions Sun Microsystems SPARC IBM PSeries Sun Fire X Séries Server Bull Novascale HP DL Series Dell Servers Egenera Blade Sun Fire X Séries Server
  4. 4. Sun Microsystems – Organization Background & Software <ul><li>Sun Microsystems brand was co-founded by three Vinod Khosla, Scott McNealy, and Bill Joy. The company went public in 1986 and has evolved with the times from a pure hardware and operating system vendor to leading edge provider of software development framework </li></ul><ul><li>Sun Microsystems (James Gosling) developed the Java language (1991) for the purpose to control cable converter system and from then Java framework evolved into Web standard because of its ability to be platform agnostic “Write Once , Run Anywhere” concepts. </li></ul><ul><li>Even though the organization has gone through very deep financial difficulties during the era due to bad technical strategies, Sun Microsystems has transformed its product portfolio and risen to the top technical hardware and software manufacturers. </li></ul><ul><li>The company has diversified it product portfolio by developing ground breaking frameworks (Java) which entire software industry adopted. </li></ul>Sun (JAVA Based) Software Product Java framework has contributed to the creation of the new product market “application server industry”….. Oracle Application Server Java is utilized by third party products due to its portability… Java Third Party Software Product
  5. 5. Sun Desktop Market- Competition against PC Market Sun Ultra 40 M2 Workstation Two AMD Opteron processor (2000 Series) Sun Ultra 20 Workstation One AMD Opteron processor (1200 Series) Sun Ultra 24 Workstation Intel® Core2 Duo /Quad Processors Sun Ultra 25 workstation 1.34-GHz UltraSPARC IIIi proccessor Sun Ultra 45 workstation Up to two 1.6-GHz UltraSPARC IIIi processors each with 1 MB of Level 2 cache <ul><li>SUN Microsystems has a very niche desktop market with is high-end SPRAC (RISC architecture) desktops usually utilized by the telecommunications, engineer (CAD/CAM), and universities </li></ul><ul><ul><li>Sun was the first to branched out and create a new niche product offering of 32 bit chip sets with various LINUX distributions which very few 32 bit vendors offer . </li></ul></ul><ul><ul><li>Since SUN already has brand recognition in UNIX market already, it started to embrace LINUX OS and offers it as part of their product set </li></ul></ul><ul><ul><li>Desktop vendors like Dell, HP, IBM, etc were late in offering pre-configured LINUX desktop solutions </li></ul></ul><ul><ul><li>Sun has also developed an x86 implementation of their popular Solaris operating system (x86 Solaris) which only ran on their higher end SPRAC servers and ported it to a 32 bit platform (Intel/AMD) </li></ul></ul><ul><li>Competitive Edge: </li></ul><ul><ul><li>In the past couple of years, Sun has increased its competitive edge by diversifying its desktop line to INTEL and AMD chip set </li></ul></ul><ul><ul><li>From an OS perspective, Sun is offering RedHat, x86 SOLARIS ,SUSE LINUX and various distributions of Linux solutions </li></ul></ul><ul><ul><li>Sun has a unique set of pre-configured desktop LINUX & Windows offerings to be able to compete with vendors like Dell, HP, IBM, etc… </li></ul></ul><ul><li>Solaris 10 (0/06) OS Pre-installed </li></ul><ul><li>Red Hat Enterprise Linux 3 WS Edition (32/64-bit) </li></ul><ul><li>Red Hat Enterprise Linux 4 WS Edition (32/64-bit) </li></ul><ul><li>Red Hat Enterprise Linux 5 WS Edition (32/64-bit) </li></ul><ul><li>SuSE Linux Enterprise Server 9 (64-bit) </li></ul><ul><li>SuSE Linux Enterprise Desktop 10 (64-bit) </li></ul><ul><li>Competitive Analysis </li></ul><ul><li>Sun Microsystems has a long standing great reputation for its UNIX (SPARC) products and has integrated LINUX into its range of product offerings from workstation, mid-range and enterprise servers. </li></ul><ul><li>Sun has branch out from its SPRAC only desktop solution and is able to compete in the AMD and Intel space with its new product offerings. </li></ul>
  6. 6. SUN Desktop Competition SUN/LINUX vs. Windows <ul><li>SUN has extended its desktop product portfolio to compete in the Windows market. ( ) </li></ul><ul><li>SUN was first to introduced a line of personal computers at WalMart leveraging various distributions of LINUX at very low price point ($298 to $698) for each desktop </li></ul><ul><li>SUN utilized LINUX and its own portfolio of products like OpenOffice, Java, etc… to directly compete with windows… </li></ul><ul><li>Sun desktop vs. Windows </li></ul><ul><li>Since SUN desktop are LINUX based, the vulnerabilities to virus and pop are non-existence </li></ul><ul><li>OpenOffice is open source version of Microsoft Office created by SUN and its FREE. </li></ul><ul><ul><li>Presentation, document, spreadsheet interchanged between Office and OpenOffice </li></ul></ul><ul><li>Cost of expensive software like virus scanner can be avoided </li></ul><ul><li>Interface of LINUX has improved and is user friendly. </li></ul>
  7. 7. Sun Microsystems –Enterprise Server Products <ul><li>Sun Microsystems enterprise SPRAC product are know through out financial , banking and university sectors has high-quality compute server products. Sun has improved the SPRAC server product line by add functionalities such as: </li></ul><ul><ul><li>Solaris operating system -Virtualization Platform and System Resource Mgmt (SRM) </li></ul></ul><ul><ul><li>Multi-Core Chips (Ultra SPRAC IV+, Ultra SPRAC T1 {Multi-Threaded Technology} ) </li></ul></ul><ul><ul><li>JAVA development framework </li></ul></ul>Hypervisor Virtualization <ul><li>Midrange Servers </li></ul><ul><li>Sun SPARC Enterprise M5000 & M4000 </li></ul><ul><li>Sun Fire V890 & V490 Server </li></ul><ul><li>-Sun Fire E2900,E4900 & E690Server </li></ul>Entry Level Servers - Sun SPARC Entreprise T5220 &T5120 Server - Sun SPARC Entreprise T2000 &T1000 Server High-End Servers - Sun Fire E25K &E20K Server - Sun SPARC Enterprise M9000 & M8000 Server Hardware Product Line Dynamic System Domains Solaris Web Server Solaris App Server Solaris Database Server Solaris Resource Manager Solaris Containers (Zones + SRM) Logical Domains Solaris Zones Solaris Web Server Solaris App Server Solaris Database Server
  8. 8. Software Revenue: “Can Sun make any money from JAVA? <ul><li>Java development framework has generated an immense amount of revenue for Sun Microsystems, the first major proceeds from JAVA for Sun was the settlement from the Microsoft lawsuit which was estimated at 20 million </li></ul><ul><li>Based on interview with Jonathan Schwartz, JAVA framework is utilized by various vendors such as </li></ul><ul><ul><li>Cell phone, portable electronic devices manufacturers any or device which utilize Micro-Edition Java SUN receives licensing fee </li></ul></ul><ul><ul><li>Another revenue stream from JAVA, is from training vendors which offer programming training </li></ul></ul><ul><ul><li>Major vendors like IBM, BEA, Oracle, etc also have to pay SUN for leveraging the JAVA framework </li></ul></ul><ul><ul><li>Java is also being targeted for the integration into music devices, IP Telephony and even portable multimedia handheld components. </li></ul></ul><ul><ul><li>The success of JAVA been estimated at $13 billion of SUN Microsystems. The following are URL with the success of JAVA: </li></ul></ul><ul><ul><li>Java Success News: </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul>Revenue Time
  9. 9. Acceptance of Java (Web-based programming language) <ul><li>Java has been accepted widely as the platform for web development directly or indirectly such as Microsoft leverage to develop its signature C sharp (C#) language </li></ul><ul><li>Since the introduction of Java in 1990, many open source and commercial products have been developed utilizing the framework </li></ul><ul><ul><li>Based on a Gartner report published regarding commercial E-Commerce software ( ) </li></ul></ul><ul><ul><ul><li>Market leader IBM WebSphere Commerce server utilized a pure JAVA framework </li></ul></ul></ul><ul><ul><ul><li>Another market leader Oracle is also a very big proponent of JAVA and utilize framework as part of there application server, database and server products </li></ul></ul></ul><ul><ul><ul><li>Open Source product such a Apache Tomcat, JBOSS (purchase by RedHat Corp), Apache Geronimo all utilize JAVA frameworks, these application severs make up 51% of public internet websites. </li></ul></ul></ul><ul><li>Open Source web development GUI (NetBean & Eclipse) are completely based on JAVA framework which very popular tools </li></ul><ul><li>In fact the most popular LINUX distribution (RedHat) purchased JBOSS(open source application server) and now integrated this JAVA component part of operating systems environment. </li></ul>
  10. 10. Sun vs. Linux <ul><li>Sun Microsystems has extended it server hardware product line to support the various LINUX distributions as well as Windows operating systems </li></ul><ul><ul><li>From a pricing, look, strategy SUN is able to compete with Dell, HP, IBM in the x86 lower price point server hardware marketplace. </li></ul></ul><ul><ul><li>With the introduction of the X Series line, SUN’s SPARC product is no longer competing with LINUX server markets. SUN supports LINUX on its hardware platform and is competing with other hardware vendors. </li></ul></ul>SUSE Enterprise Linux by Novell Red Hat Enterprise Linux ES Windows, other Linux distributions Intel/AMD Midrange Server Intel/AMD Entry level Server Intel/AMD Desktop Intel/AMD High End Server
  11. 11. Sun Microsystems – Microprocessor Market Share INCREASE <ul><li>After the 1.6 Billon settlement with Microsoft in 2004, SUN still reported losses due to employee payouts because of its decision to reduce its workforce and concentrated on rebuild to technology portfolio. </li></ul><ul><ul><li>Since 2004 SUN diversify its product portfolio and concentrated on key technologies which improve technology standing and increase its profit. SUN improved and introduced key strategic products such as : </li></ul></ul><ul><ul><ul><li>Operating System SPRAC 10- introduction virtualization (Containers, Zones, etc…) </li></ul></ul></ul><ul><ul><ul><li>One of the strategic products Sun introduced to the market was “Galaxy” (Intel/AMD) line of server products </li></ul></ul></ul>Sun grew its server revenue in the second quarter to $1.59 billion, up 15.5% from $1.37 billion in the second quarter of 2005, says a new IDC report on the server market. That second quarter revenue was enough to push Sun past Dell, which had a revenue of $1.27 billion in the quarter, down 1.3% from $1.29 billion in the second quarter of 2005. IDC Report :;jsessionid=R4RD0VIUMNIQWQSNDLOSKHSCJUNN2JVN?articleID=192203418&_requestid=612796 Market Share Gains (X86) Based on Sun Market Share report, Sun has seen 1.7 % increase in market from its competitors (x86 Market sharer) <ul><li>Sun has become the market leader with its introduction of the UltraSPARC IV+ chips which offers virtualization capabilities </li></ul>Market Share Gains (UNIX-RISC) Sun ULTRASPRAC IV+ market leader CNET Report :
  12. 12. SUN JAVA Survival: New Vertical Markets Strategies <ul><li>Sun is continually trying to improve its products and services to branch into industries segments in which they have very little market share such as </li></ul><ul><ul><li>Java Enabled Wireless Embedded Devices (Consumers Markets) </li></ul></ul><ul><ul><li>iPlanet Technologies </li></ul></ul><ul><ul><li>J2ME Technologies </li></ul></ul><ul><ul><li>Other Wireless Technologies </li></ul></ul><ul><li>Key Note : Sun has gained great market share and will continue to generate revenue from the integration of JAVA into the variety of devices… (JAVA already generated 13 billion in revenue) </li></ul><ul><li>Java Virtual Machine Projects </li></ul><ul><li>for embedded devices such as : </li></ul><ul><li>NanoVM </li></ul><ul><li>kAWT </li></ul><ul><li>Janos, etc… </li></ul>Linux /Java PDA Linux /Java Cell Phone Linux /Java MP3/Cell/PDA J2ME Technologies Code editor for mobile (CodeEditor) eDAQ - High precision, low-power data acquisition board for SunSPOTs AutoSPOTs -Remote-controlling a Sun SPOT controlled autobot JAVA TECHNOLOGY IS EVERYWHERE SURPASSES 1.5 BILLION DEVICES WORLDWIDE iPlanet Technologies <ul><li>Operating Systems </li></ul><ul><li>Virtualization </li></ul><ul><li>Java </li></ul><ul><li>Mobile Solutions </li></ul><ul><li>Java Enterprise System </li></ul><ul><li>Identity Management </li></ul><ul><li>Business Integration </li></ul><ul><li>Databases </li></ul><ul><li>Office Productivity </li></ul><ul><li>Systems Management </li></ul><ul><li>Developer Tools </li></ul>Java has been integrated into these products - Increase the implementation and use of JAVA Sun prepares iPlanet Application Server for Linux SUN Success Java Card Technology -&quot;smart card is a credit card sized plastic card with an integrated circuit &quot; K Virtual Machine- &quot;extremely lean runtime cell phones, two-way pagers, and personal digital assistants (PDAs).&quot; Other Wireless Technologies Linux grabs 30% of China's fast growing smartphone market Java Enabled Wireless
  13. 13. Conclusion <ul><li>Sun Microsystems has proven itself as a successful hardware and software manufacturer based on its success with JAVA, Solaris 10 Virtualization, Niagara chip set and other innovative products… </li></ul><ul><li>Sun’s products have generated revenue and has been widely adopted by various other hardware vendors such as cell phone manufacturer, games console creators, etc… </li></ul><ul><li>Sun development framework vision (JAVA) “Write once, run anywhere” has demonstrated to the developer community the flexibility and resiliency of the JAVA framework </li></ul><ul><ul><li>Due to JAVA’s robust architecture, a completely new industry (application server) has been developed by companies such IBM, BEA, Oracle </li></ul></ul><ul><li>Instead of competing with LINUX, Sun has been able to successfully integrate its products with the new open source operating environment </li></ul><ul><li>Sun’s measures of success will depending upon its vision to constantly improve and innovative which it has done throughout its existence </li></ul>