Sun will now (Scott wont be happy with "diversify") sell software also as it had been predominantly a box seller. (hi end servers). Now with companies looking to cut costs, Sun is looking to software to prop up its sales. ( for the uniniated, Sun was one of the forerunners of open-source software and the inventor of Java). It would sell the Java Desktop system ( which includes a windows like office version, Linux based windows os) at a shockingly low and cute 100$ per employee..

So what does this signal?
a) Companies are moving to a predominantly software model. ( except for a few like Dell whose existence is hardware).
b) Utiliity based computer or even pricing is likely to be in the future.
c) Existing software is probly very much overpriced. (enterprise software surely is).
d) Linux based java systems likely to succeed in the future.(my surmise and strong conviction).
e) Probly sun realizes that it doesn't want to another IBM ;-) (making hardware and giving up the software almost for free)