Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
Sun's new CEO Jonathan Schwartz has some painful changes ahead to face if it wants to recover lost ground, according to technology research group Ovum.
Ovum says in a recent research note that: "Jonathan Schwartz has a
major task on his hands. He has to lead a team that still shows signs
of being deeply at odds with itself and a company that has a
complicated relationship with the rest of the industry.
"Sun has
some dramatic and painful changes ahead of it, and Schwartz needs to
make use of his first months as CEO to take some tough and pragmatic
decisions. Sun does not need "more of the same", or even a "gentle
touch on the wheel"; Sun needs to transform - and the next few months
will show whether Schwartz has the vision, and the ability, to take the
hard road to recovery."
According to Ovum, in the hardware space
it is doubtful whether Sun will be able to ship its power efficient
CoolThreads servers in sufficient volumes and the storage business
needs attention. Meanwhile, the software side of the business needs a
complete overhaul, says the Ovum research note.
"Sun's software
strategy may be clear to the likes of McNealy and Schwartz (who was its
principal architect) but to the outside world it appears confused.
Sun's software portfolio is simply not as strong, or as complete, as
Schwartz is apt to claim. Sun's entire software portfolio needs a
significant overhaul that has to involve a good deal of divestment -
some elements are simply not attractive enough to the market or
competitive enough.
"These are not trivial issues, and while
it's easy to blame "marketing" for Sun's woes, the challenges run far
deeper than branding - Sun's new CEO has a lot of work to do."
David Bass
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