“After more than two decades at the helm, Sun Microsystems CEO Scott McNealy is stepping aside and leaving the top job to the company’s current No. 2. Sun shares rallied late Monday on the news, which also included an announcement that Sun’s third-quarter revenue grew by 21 percent. But McNealy critics, who say the 51 year-old co-founder has been slow to cut costs and make other painful changes, shouldn’t count on him ceding control, one observer said,” Dan Goodin reports for The Associated Press. “Sun President Jonathan Schwartz will keep that post as he becomes chief executive. McNealy will remain chairman and a full-time employee of Santa Clara-based company.”
“McNealy, the often outspoken co-founder of Sun Microsystems Inc. and one of Microsoft Corp.’s most vocal critics, announced his decision as the pioneering maker of computer servers reported a wider quarterly loss,” Goodin reports. “Sun’s shares surged nearly 9 percent after the announcement of McNealy’s exit and the $217 million loss that met Wall Street expectations. McNealy was under increasing criticism from analysts and former executives, who said he wasn’t doing enough to restore the company to its more profitable days.”
“McNealy co-founded Sun Microsystems in 1982, developing it into a scrappy Silicon Valley startup whose high-powered computers, called workstations, became a major staple with engineers and businesses. In 1996, after Microsoft products began encroaching on Sun’s territory, McNealy reinvented the company as a maker of servers, which performed the same tasks as mainframe computers for a fraction of the cost,” Goodin reports. “Schwartz, 40, joined Sun in 1996 with its acquisition of Lighthouse Design Ltd., a 35-employee outfit he founded to make software for Steve Jobs’s NeXT computer. Named president and chief operating officer in 2004, he graduated with a bachelor’s degree in mathematics and economics from Wesleyan University in 1987.”
“Schwartz said he had no immediate plans to change Sun’s strategy, although he declined to say if he planned further job cuts or other restructuring. Sun has about 38,000 employees,” Goodin reports.
Full article here.
MacDailyNews Take: And now for a medley of McNealy’s greatest hits:
• “Probably the most dangerous and powerful industrialist of our age.” [Referring to Bill Gates]
• “When Steve Ballmer calls me wacko, I consider that a compliment.”
• “The only thing that I’d rather own than Windows is English, because then I could charge you two hundred and forty-nine dollars for the right to speak it.”
• “Try moving off [Windows] NT easily. You can move from Solaris to HP/UX to AIX or DEC easily relative to moving off of NT, which is like a Roach Motel. Once you check in, you never check out.”
• “Microsoft is now talking about the digital nervous system. I guess I would be nervous if my system was built on their technology, too.”
• “Instead of plug and play – in the Microsoft world you plug it in and play around with it for a few weeks…”
• “Ballmer and Butthead.” [Ballmer & Gates]
• “A giant hair ball.” [Microsoft’s Windows and Windows NT]
• “Windows More Errors” [Windows ME]
• “Look Out” [Microsoft’s Outlook]
• “Every time you turn on your new car, you’re turning on 20 microprocessors. Every time you use an ATM, you’re using a computer. Every time I use a settop box or game machine, I’m using a computer. The only computer you don’t know how to work is your Microsoft computer, right?”
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