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Ontario Technoblog

Ontario Emperor technology blog.

This blog has been superseded by the mrontemp blog
Location: Ontario, California, United States

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Monday, April 24, 2006

Scott McNealy

Sun's spin:

24.April.2006 - Sun's board of directors named Jonathan Schwartz chief executive officer today, as a result of the company's on-going succession planning process. Scott McNealy will continue as Sun chairman and takes on the additional title of chairman of Sun Federal Inc., where he will focus on Sun's key U.S. government customers. Today's announcement marks the culmination of a carefully architected succession plan....

With today's announcement, Jonathan Schwartz becomes chief executive officer of a company with a clear path, a solid team and its greatest days ahead of it.

AP has a different spin:

Scott McNealy, a co-founder of Sun Microsystems Inc., said Monday he will step down immediately as chief executive of the company he has led since 1984.

Jonathan Schwartz, the company's president, will retain that position and take over as chief executive, McNealy said on a conference call to announce third-quarter results that included a wider loss on higher revenue....

On Monday, Sun posted a wider fiscal third-quarter loss, as costs for acquisitions, stock-based compensation and restructuring chipped away at higher revenue.

The net loss for the three months ending March 26 was $217 million, or 6 cents a share, compared with $28 million, or 1 cent, in the same period last year. Revenue grew 5 percent to $3.18 billion from $2.63 billion as recent acquisitions boosted sales.

InfoWorld's Ephraim Schwartz leans toward the latter:

The news that Sun's Scott McNealy stepped aside today from the helm should come as no surprise. The only thing I would be surprised at are those who think he actually stepped aside and wasn't pushed by the board.

The financial news coming out of Sun has been bleak since 2002 with estimates that the total loses since the dot-com bubble burst is about $4.5 billion.

Some say Jonathan Schwartz will complete the move to the network computer.

The question is, does the concept of a super-thin client, no hard drives, intelligent cache, running anything but Windows have legs. Can Sun under Schwartz sell it. And I mean literally sell it.

Others, like Josh Greenbaum, principal at Enterprise Applications Consulting, has different advice for Schwartz.

Greenbaum says Sun's major failing is it has never been able to capitalize on the software leadership that it generated over the years, with Java being the best example.

There is no Java revenue stream....

Ashish was thinking:

Scott McNealy is stepping down and Jonathan will be the new CEO of Sun Microsystems. As he is staying as the chairman of the board and the president of the company, it is yet to see how significant this move would be. But the stocks were up and quickly closing in to $6. Lets see where does Jonathan sail this ship to. The questions if this move is too late, or what if he had done it earlier to keep Ed Zander in will remain unanswered. But he will be missed though.


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