Sun Microsystems

1
Sun Microsystems

• Triad Consulting Inc.
• Mariana Di Laudo
• Joanna Konandreas
• Belinda Stinson
• August 1985

2
The Question

• Should Sun Microsystems launch Carrera on
  September 10th, 1985?

YES
3
Carrera

• Sun 3 family mid-end workstation
• CPU, memory, high-resolution monitor, operating
  system, network capabilities
• Product-design philosophy
• Standard technologies
• Single board design
• Open systems architecture

4
Microprocessor Chips

• Motorola 68020 16.67 MHz Chip
• Supplies
• Speed
• Pilot Testing with 12AF
• Software

5
Microprocessor Chips

• Launch Carrera with 12AF chips
• Contract with Motorola
• Guarantee supply of 12AF chips
• 25 upfront payment
• Deadline for fully tested 68020 chips Oct 10

6
Microprocessor Chips

• Internal deadline
• Fully tested Carrera with 68020 chip Dec 10
• January release with upgraded features

7
Organizational Structure

• Departments
• Manufacturing
• Customer Support
• Software
• Marketing
• Hardware

8
Organizational Structure

• Departments
• Manufacturing
• Hire additional employees
• Hire a Vice President
• Customer Support
• Hire additional employees
• Hire a Vice President
• Software
• Offer an incentive

9
Market

• Sun 2 sales
• Initial Public Offering
• Customers
• OEMs
• Competitors
• Apollo, DEC, IBM

Percentage of 1985 RevenueTotal 713 Million
10
Benefits of September Launch

• Initial Public Offering
• Carrera launch will have positive impact
• Will be able to lock in OEM customers
• IBM will be overshadowed by January
• 16.67 MHz chip release
• DEC and Apollo

11
Long Term

• Technological change
• Product ? Process
• Manufacture of the Chip
• Motorola ? In-house
• Research Focus
• Software

12
Risk Management

• Motorola Supplies
• Deadline moved to October 10th
• Software
• Debugging for December 23rd
• Organizational Issues
• Hiring externally
• Departmental Equality

13
Summary

• Four Point Test for Technological Change
• Enhancing differentiation
• Creating a first mover advantage
• Shift in uniqueness drivers
• Improving industry structure

14
Thanks for your time.Questions?