Is Sun Co-Founder Andy Bechtolshiem Leaving Or Not?
Thursday, October 23rd, 2008A New York Times story reported Thursday that Sun co-founder Andreas Bechtolsheim was quitting Sun for a startup. But Sun says no; it’s a part-time gig.
“There have been a few inaccurate articles published regarding the status of Sun co-founder, Andy Bechtolsheim,” the company said in a statement. “Sun can confirm that Andy will remain with Sun to continue his present involvement with the Sun Systems group in helping to drive new product architectures, including X64 servers and storage servers, and will continue to work on key strategic initiatives such as HPC. Andy will move to part-time work status and spend the remainder of his time involved in the start-up community where he worked prior to re-joining Sun in 2004.”
Also in a statement Bechtolsheim, who is currently chief architect and senior vice president of Sun’s systems group, said he was “very proud of all the accomplishments we have achieved as a systems team, including the Sun Fire X4000 family of X64 servers, the Sun Constellation System, the Sun Fire storage servers and Flash Storage, and Sun Datacenter Switch 3×24, and I look forward to many more over the coming years.”
The fact that, Bechtolsheim is staying with Sun is good news for the server company, considering all the bad news the company has endured lately.
Earlier this week, Sun Microsystems warned Wall Street that it expected to report a big loss in the third quarter. The company said it expects to lose 25 cents to 35 cents a share. Excluding one-time charges, the loss is expected to be about 2 cents to 12 cents a share. This is worse than the loss of 1 cent a share loss that many analysts had expected.
The company, which has been battered by competition and slowing demand from financial customers, has struggled for nearly a decade with financial issues. And the current economic crisis has only exacerbated the situation.
In another sign of trouble, Sun Microsystems’ largest shareholder, Southeastern Asset Management, upped its stake this week and taken a more aggressive attitude toward its investment.
But luckily for Sun it looks like its star hardware man won’t be abandoning them. Instead, he will be helping lead a new startup in the networking sector that will go head-to-head with another of his former employers Cisco Systems.
On Thursday, a small Silicon Valley switching company called Arista Networks announced that it had named Bechtolsheim as chairman and chief development officer for the company.
Bechtolsheim, who co-founded Sun Microsystems in 1982, is a well known figure in Silicon Valley. And had become a sort of prodigal son at Sun, leaving the company in 1995 to found a networking startup called Granite Systems. And then returning to Sun nearly a decade later at a time when the company needed help breathing new life into its product line.
For Bechtolsheim the move to start a new company is likely to reap big rewards in the-not-so-distant-future. He has a long history of starting and selling companies. After selling Granite to Cisco in 1995, he stuck around the networking giant for several years. He left in 2003 to start a new company called Kealia, which made high-end media servers. A year later, Sun reclaimed Bechtolsheim when it bought Kealia, a move that powered a fundamental technology shift to sell servers based on x86 chips as well as its own UltraSparc processors.
Now Bechtolsheim is heading up a company that makes 10 Gigabit Ethernet switching equipment designed to shuttle Internet traffic at super fast speeds between servers in high-end data centers. The startup faces a lot of competition in this highly competitive market, especially from networking heavyweight Cisco Systems. But given Bechtolsheim’s strong ties to Cisco, it’s likely he could once again end up as Cisco’s prodigal son as well.
Adding more weight to the prediction that Cisco will one day buy Arista is the fact that the company has also hired 15-year Cisco veteran Jayshree Ullal to act as CEO of the company. Ullal headed up Cisco’s Ethernet switching division and helped develop the company’s data center switching strategy. She left Cisco in May.
Source — Yahoo!
