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Technology News Technology news for enterprise IT from InfoWorld

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Alt 12-06-2006, 03:50 PM   #1 (permalink)
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Standart Sun less vulnerable to IT slowdown than rivals, exec says

(Linkleri Üyelerimiz Görebilir. UslanmaM Üyeliği İçin Tıklayın) - A Sun Microsystems executive said the $13 billion technology company should be able to handle a possible slowdown in information technology (IT) spending better than some of its larger rivals.
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John Fowler senior vice president of Sun's Systems Group which sells servers and related products responded Tuesday to a research report forecasting slower growth for global IT spending in 2007.
Forrester Research:-)forecasts worldwide spending on IT goods and services to grow by only 5 percent next year after two consecutive years of 8 percent growth. Forrester said 5 percent would be the weakest growth rate since 2003.
Fowler in an interview with technology reporters said larger rivals such as Hewlett-Packard which finished its fiscal year with $91.7 billion in revenue IBM forecast to make $90.72 billion and Dell $58 billion are more vulnerable to macroeconomic conditions than the smaller Sun.
"We can in a weaker market gain ground in market share by virtue of product and execution which is what has been happening" Fowler said.
He noted that when the worldwide server market grew by just 0.6 percent in the second quarter of this year Sun's revenue grew by 15.5 percent according to a report from the research firm IDC. In the third quarter when the server market grew only 3.5 percent Sun's revenue grew 15.8 percent.
"You have to pay attention to macroeconomics but...if you were a $60 to $70 billion company the macroeconomics affect you [more] dramatically" Fowler said.
However Sun's server shares have been in the low double digits and the company has been reporting net losses in recent quarterly reports.
Forrester said sales in the U.S. in particular will be weak as chief information officers at companies reduce spending in the coming year. "This is a caution flag for IT vendors 2007 will be a challenging environment" said Andrew Bartels vice president of Forrester Research in a prepared statement.


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