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Not unlike IBM entering the 90's, Sun is in the middle of a transition dealing with today's competitive realities which include the Linux incursion into the proprietary UNIX space.
Though Sun says it will not contribute Solaris code to the Linux kernel, I think they will be VERY hard-pressed to maintain the Solaris competitive edge vs. commodity Linux solutions from other vendors.
Caldera is also swimming against the stream.
Re-inventing onesself as a company is a difficult undertaking. Sun is doing some intelligent things with the options it has. I wish them well. I wish ANY alternative to Microsoft VERY well!!