Vinod Khosla and Sun Microsystems

Case Write-Up Vinod Khosla and Sun Microsystems (A)

1. Does Vinod Khosla have a real chance at changing Computervision´s decision? Does Sun have a better product? Can Sun be regarded as a reliable long-term vendor?

According to the case study, the Sun´s system has been acclaimed by the academic community. It seems obvious that technicians prefer their system. Their system is standardized, and therefore more open to development opportunities. Sun also has superior qualities in terms of network accessibility and feasibility. What Sun was aiming for obviously worked with its target customers. Their product was planned for general use and the university sector was seduced by the university sector. While Sun has taken a rather open system, Apollo has developed its own domain network and operating system, which could be a big obstacle for general use. Considering today's market trend, that a rather open system is gaining popularity between developers and technicians, Apollo and its distinctive system may not be a good choice for Computervision to consider. Sun's questionable supply capacity can be satisfied thanks to its history in its last fiscal year and its exceptional profitability. Employment can be organized according to their needs, and we can also note that experienced managers are attracted to Sun, which can affect the future stable growth of the company.

2. How should Vinod Khosla respond to Computervison´s president? What should his long-term and short-term objectives be? Specifically, what should he offer to Computervision?

It is strongly suggested that Sun should emphasize the superiority of their system to Computervision, and assuring them that the orders can be fulfilled without challenging their own capacity at the same time. The major weaknesses of Sun are their supply capacity and financial issues. In short-term, Sun needs to stabilize their weak financing and management, which does not attract Computervision to work with them. It seems to be inevitable that Sun needs Computervision’s supervision and help regarding these areas to overcome such shortcomings. On Computervision’s side this might seem as a sacrifice and loss, but in long-term perspective it is not so pessimistic as they might think.
Sun has already built a keen relationship with universities where they value the open system that Sun provides, and it is important to point out that Sun system has become their standard. The case study also suggests that Sun is attractive especially to software developers. This indicates that Sun pioneering the educational institute market was a great investment, since those students who are accustomed to Sun’s platform will continue to require their workstation in their working environment. Therefore, this can be a significant amount of market share increase – which can compensate the short-term ‘sacrifice’ of Computervision.