26. Sun Microsystems: Agile Shift Saves the Day

It charted a clear growth trajectory, becoming the numero uno in the RISC server space, with a revenue of Rs 373
crore. It also led the traditional workstation market, grossing Rs 95 crore. And that reflected in the numbers–growth was 105%, while revenues stood at Rs 518
crore.

The ‘dot-in-the-dot-com’ strategy paid off even though it was an era of dying
dot-coms–Sun was quick to find new takers in traditional brick-and-mortar companies like HDFC Bank, ITC, ABN Amro and Reliance. Other rich hauls included the emerging Internet data center market, with Sun pocketing seven of the nine big orders in this space. The company was also active on the channels front, though a major chunk of the shipments continued to come through
Wipro.

What lies ahead? The competition is raising its ante. IBM has its eServer strategy in place and plans to take Sun head on. So will Compaq. And remember, fiscal 2001-02 has begun in the shadow of a slowdown, heavy price cuts and discounts being a natural syndrome. Some smart shooting should ensure that the sun keeps shining.