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Channel Partners: Sun Needs Layoffs, Cost-Cutting: Page 5 of 7

“When things are good, having a CEO with a larger-than-life persona is a good thing. When things are going badly, you’ve got somebody in the CEO chair with a very large target on his chest,” said Charles King, principal analyst at Pund-IT, Hayward, Calif.

Jeff Matthews, general partner at Ram Partners, a Greenwich, Conn., hedge fund, said Wall Street’s feelings were clear: “The stock rallied 10 percent on the news he was leaving. What does that tell you?”

But Matthews, who holds no position in Sun, cautioned that “we need to see what the new guy actually does before we get too excited. So far the mainstream press has focused on his ponytail, which is not necessarily very exciting business-wise.”

The 40-year-old Schwartz—who is, in fact, ponytailed—is viewed as vital and very articulate. He puts even pointed comments in a more positive light. “He says some tough things, but he says them in a thoughtful way,” said one solution provider.

After a mere decade at Sun, Schwartz lacks much of McNealy’s baggage. Some say he will preside over cuts, his comments notwithstanding. “Everyone has been calling for Sun to consolidate Sun and StorageTek personnel, and looking at other costs. Scott just doesn’t have the stomach for it,” Condensa said.