Feeds

Wall St. cheers Sun job cuts

4,400 down - 35,000 to go

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Wall Street is always grateful to hear of job cuts, and Sun's decision to shed 11 per cent of its staff - or 4,400 people - saw its stock rally by almost ten per cent.

The index saw its biggest rise for nine months in July when record unemployment figures were announced.

We've noted the wisdom and foresight of financial analysts here before. We've noted that compared to its rivals, Sun is doing extremely well in the harshest recession the technology industry has ever known. We've also noted that long term investment is needed in work that brings high margins and profits in the future, which is exactly what Sun is doing.

But analysts have a long term problem with the company, and will only be sated by more blood.

"Sun risks becoming the Apple of corporate computing, cool but less relevant," reckons Merrill Lynch analyst Steve Milunovich (via CRN).

Merrill Lynch's previous public recommendations have included eToys, Pets.com and host of other stocks it privately described as "junk," "crap," "dog", "disaster" and "POS", or "piece of shit". Merrill Lynch was fined $100 million for deception under the Martin Act, a New York state consumer fraud law.

NY's Attorney Spitzer argues that the health of the state depends on the credibility and integrity of its capital markets.

Milunovich may be right - if Sun faces a new and unexpected disruptive technology, and can't respond - (he think this is Itanium) - or if enterprise hardware systems and software will very soon become a commodity game where the only thing differentiating these million dollar computers will be their color.

In short, he asks us to believe that the world of new technological innovation has simply stopped turning, and the future belongs only to companies who can amortize what little R&D is needed down to their distribution channels, that employ not people, but robots and felons.

Sun posted a net loss of a mere $78 million, 2.8 per cent of the $2.7 billion worth of income in the quarter.

Best of luck to our many friends at Sun, and other companies where the stupidity and greed of the Wall Street sages takes a human cost. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.