Sun has launched majority of their software into the open source realm.
This means that Solaris should now be able to compete with Red Hat and Suse. Sun has bought storagetek to strengthen their storage portfolio since they are now a hardware shop.
Since most software written on Linux is Java or C/C++ it can be moved across to Solaris. Solaris is a better operating system.
Sun is an innovator which continues to strengthen its OS and its related technology.
Sun is also working on RFID and other networking technologies to allow for many small devices all to talk to each other. They could potentially be looking at licensing the software/hardware designs for these innovations.
Sun has moved to a position of making money only from hardware. This on its own has a lot of risk because of the immense amount of competition in the market at the moment. Sparc is a dying platform due to the price and performance difference between x86 and sparc. Sun has got a tight relationship with AMD but they are competing against Dell/Intel, IBM/Intel/AMD and HP/Intel, although the HP competition is not threatening at the moment.
Solaris being free does not secure Sun’s financial future which now relies on hardware.
MEDIUM TO HIGH – A lot of competition. People are happy with x86/Linux combo rather than sparc/solaris or even x86/solaris, but since Solaris has gone open source people are going to start shifting again onto Solaris, but not necessarily onto their hardware.
Sun has to keep in front of the game in the OS and related technologies space, and value added software for Sun hardware maintenance for people to choose Sun. Sun has to work hard on making sparc a better platform to x86 and that has to be met in the cost constraints of x86.