“I came, I saw, and I lost it” this is probably what Sun Microsystems CEO Scott McNealy would have burped. The company faces an uncertain future since the dotcom bust, as the web world basks in revivification. In the 1990s, Sun became a powerful force competing with the likes of Microsoft and IBM. Sadly, the impertinence and determination that marked Sun’s success also caused its downfall.
During the Internet bubble, Sun’s servers became the must have paraphernalia for the millions of Internet firms (it called itself the dot in dotcom) – sales rocketed and so did profits. When the bust came, Sun refused to cut down R&D spending, employee costs or adapt its product portfolio. The CEO believed that Internet had essentially altered the nature of the economy and this bust is just a fleeting phase. But the wreckage was far from over. Finally the company not only lost out on new opportunities, but eventually lost its edge as well.
During the Internet bubble, Sun’s servers became the must have paraphernalia for the millions of Internet firms (it called itself the dot in dotcom) – sales rocketed and so did profits. When the bust came, Sun refused to cut down R&D spending, employee costs or adapt its product portfolio. The CEO believed that Internet had essentially altered the nature of the economy and this bust is just a fleeting phase. But the wreckage was far from over. Finally the company not only lost out on new opportunities, but eventually lost its edge as well.
