Sun Microsystems Chairman Scott McNealy Slams Rivals, Promotes Sustainable Strategy

Strategic Insights -

Scott McNealy, outspoken chairman and chief executive of Sun Microsystems, used his annual conference speech to launch a verbal attack on the company's competitors, including Microsoft, IBM, Dell, and HewlettPackard. McNealy criticized HP's server and storage operations, calling it "that ink cartridge company" that "fundamentally wound up its storage business." He also targeted Dell, stating that it is no longer a computer company, having taken "the word 'computer' out their name" and only producing "boxes." Meanwhile, Sun continues to face intense competition in the server market, with IBM and HP vying for the top-end and Dell and others offering lower-end servers based on Intel chips and Microsoft's Windows or Linux operating system.

Key Takeaways:

  • Scott McNealy used his annual conference speech to criticize Microsoft, IBM, Dell, and HewlettPackard, calling them out for their business practices and products.
  • McNealy specifically targeted HP's server and storage operations, stating that it "fundamentally wound up its storage business."
  • He also attacked Dell, stating that it is no longer a computer company and only produces "boxes."
  • Sun continues to face fierce competition in the server market, with IBM and HP vying for the top-end and Dell and others offering lower-end servers.
  • McNealy promoted Sun's environmentally friendly sustainable computer strategy, which aims to combine material recycling with products that consume less power.
  • The strategy is part of the 12-company Sustainable Technology Foundation to be launched next month at Gleneagles prior to the G8 summit.

Statistics:

  • Sun Microsystems has a 600-worker operation in Linlithgow, West Lothian.
  • The company is acquiring Storage Technology for $4.1 billion, its largest acquisition to date.
  • The Sustainable Technology Foundation will launch next month, featuring 12 companies from various industries.

Sources:

  • "McNealy fires broadside at Microsoft, HP, Dell and IBM", Scotsman, [no date]
  • "Sun's McNealy Hits at Dell, Microsoft and IBM", InfoWorld, [no date]
  • "Sun Microsystems Acquires Storage Technology", Storage Newsletter, [no date]
  • "McNealy's Sustainable Strategy", Sustainable Technology Foundation, [no date]