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internetnews.com: HP Goes After Sun Customers

Oct 03, 2003, 18:30 (5 Talkback[s])
(Other stories by Thor Olavsrud)

"Hewlett-Packard will offer Sun Microsystems customers $25,000 as an incentive to switch to HP systems running Linux, the company confirmed to internetnews.com Friday.

"The offer from HP comes in the midst of a bad period for Sun. On Monday, the once high-flying systems vendor warned that it would run a loss of between 7 cents and 10 cents per share in the most recent quarter, a significantly higher loss than the roughly 2 cents per share loss analysts were anticipating.

"On Thursday, Merrill Lynch technology analyst Steven Milunovich, in an open letter/research note, urged Sun to slash as much as 15 percent of its workforce and focus on being a niche player in mission-critical computing or risk being acquired -- or worse.

"HP appears to be taking Sun's current woes as an opportunity to press its advantage, and apply further pressure on Sun's margins..."

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