Linked by Thom Holwerda on Tue 27th Mar 2007 22:24 UTC
Oracle and SUN Sun Microsystems has launched a new business unit to sell its Sparc processors, a return to an idea it had dropped years ago. David Yen, currently executive vice president of storage but previously in charge of Sun's Sparc work, will lead the new group and retain his executive VP status, the company said Thursday.
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RE[7]: SPARC's dead Jim
by crystall on Thu 29th Mar 2007 08:23 UTC in reply to "RE[6]: SPARC's dead Jim"
crystall
Member since:
2007-02-06

Which makes going back into the chip business right now a suicidal thing to do. They're still an old world IT company that is still trying to find its place in the world and work out why things aren't the way they used to be.

Read the announcement, they do not intend to go back in the chip business, they don't want to spend R&D money for it, they don't want to go head-on against Intel. They want to try selling the processors they already develop for their own purposes to third parties. They have already invested money in processor R&D for their internal needs, if they can make some extra ROI on that money then fine, if they can't it won't change their current situation anyway.

Edited 2007-03-29 08:29

Reply Parent Score: 2

RE[8]: SPARC's dead Jim
by Cloudy on Thu 29th Mar 2007 16:33 in reply to "RE[7]: SPARC's dead Jim"
Cloudy Member since:
2006-02-15

they do not intend to go back in the chip business, they don't want to spend R&D money for it, they don't want to go head-on against Intel.


not spending R&D is not the same as not being in the chip business.

They want to try selling the processors they already develop for their own purposes to third parties. They have already invested money in processor R&D for their internal needs, if they can make some extra ROI on that money then fine, if they can't it won't change their current situation anyway.


It's a defocusing move into a market they've done poorly at. You can't be in the chip business as a one off. Even if you eat the entire R&D cost and subsidize the chip business out of a profitable internal division, you still have to spend money to be in the business. External support requires different documentation than internal support, different tools have to be developed and made available, and there's a marketing expense.

Sun expects to sell these chips into the embedded market, and that's a market with a high cost of marketing and low margins.

Reply Parent Score: 2