Much of the coverage of Sun Microsytems Corp.'s CEO Scott McNealy's move to
step down from the executive spot in favor of Jonathan Schwartz has
highlighted McNealy's quotability and colorful persona, giving him his due.
But little indication is given that it ever helped the company much, and most
observers seem to think it was McNealy's fault that Sun has been unable to
make money from software, even as its hardware consistently remained
excellent.
In the end, McNealy's persona served to remind everyone that the company was
becoming, as he had, a relic of a bygone era. Jettisoning him is just the
first move in a strategic campaign to restore Sun's relevancy.
It has gotten to the point where Sun's mere survival amid a sea of more dynamic companies is noteworthy, and that's why it may be
premature to count McNealy out. By retiring as CEO, McNealy distances
himself from operations at the company, where his hidebound reputation
continued to hurt the company. But after 22 years as CEO, and with a
well-documented ego, it's unlikely he will disappear.
As chairman it is not so far-fetched to think that McNealy may focus on a
strategy to really put the company on new footing with a major strategic
acquisition campaign or merger. — Clifford Carlsen
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