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Sunday, July 18, 2004

Scott McNealy Takes On His Critics via Bweek

Their reasons for why we were doing so well [during the boom] were as wrong as their reasons for why we aren't doing well now, Scott Mcnealy says of analyst's views on Sun's current performance Scott says,"We're fundamentally focused, much more so than any company I see out there. At some point, I've either got to listen to the open letters or sit down and think through this stuff. I've never seen as much conventional wisdom in our industry as I see right now.I wanted to get our product lines fixed, and we did. We focused entirely on raising the quality levels, the support levels, price performance.... We've got all that laid into place. Now we're driving consolidation, labs consolidation, facilities consolidation. We're taking our back office and putting it into the front office of our key partners, which they certainly like, and they can run their business on Sun as they go to market.We just had a lot to do. The first year after the bubble, we took capacity out. The second couple of years, we've been working on getting the product lines organized. Quite honestly, we didn't execute all that well when we were growing 40% or 60% per year. What the analysts miss is we were making all of the mistakes four or five years ago, right at the peak of the bubble". Sun should survive - survive as a strong player to provide a credible alternative to IBM and HP in the high end server market.
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