A good, but not leading, server market position; Strong, consistent product development skills, supported by significant research and development expenditures; Geographic revenue diversity (more than half of Sun's revenues come from international markets); and Sun's use of partnerships to minimize fixed asset investments and maintain a relatively low-capital-intensity operating model. Highly competitive industry conditions; Higher growth rates in server segments in which Sun has not historically had a strong position (Windows and Linux); Lack of consistent revenue growth; and Weak and inconsistent profitability. The ratings on Santa Clara, Calif.-based Sun Microsystems reflect a good, but not leading position (based on all operating systems) in the highly competitive global server market, a relatively narrow market base-ûparticularly in comparison to major competitors--and
