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1. Does Vinod Khosla have a real chance at changing Computervision’s

decision?
The possibility is small but still possible. He flew to Computervision company, try to
demonstrate how this deal making will affect his business. When he was in
Computervision’s lobby making tons of phone calls, no one would like to talk to him.
Even he tried to make over 50 phone calls, and one of the VP of sales and marketing
who was a Sun friend, but the answer he got is Computervision had made the decision
long ago. Even there were Computervision technical people from Europe who had
arrived for technical training. It was to late to change their decision. Khosla’s
competitor who is bigger and make a huge step ahead of him.

Does Sun have a better product? Can Sun be regarded as a reliable long-term
vendor?
Sun has better technology, and it is widely recognized. Sun's product, the workstation,
is designed to be flexible and powerful, and it has already attracted a large market of
universities and research institutions. However, Sun is a relatively small company
with only 40 employees, compared to their competitor, Apollo, which is well-financed
and well-managed. All these factors led Computervision to believe that Sun could not
supply a large company like them, therefore Sun could not be considered a reliable
long-term vendor."

2. How should Vinod Khosla respond to Computervision’s president? What

should his long-term and short-term objectives be? Specifically, what should he
offer to Computervision?
Vinod Khosla should stress their technical credibility to Computervision’s president,
since their good technology is well recognized by people. Then their special value
proposition of Sun’s workstation, how flexible and adaptable they are, how they will
keep doing to face the future challenge and how to react to future trends all need to be
illustrated confidently.

Short-term objectives: Gaining credibility and show what they will do when they
service could not align with the demands.

1.Comparison to Apollo's Well-Financed and Well-Connected Team: Compared to

Apollo's well-financed and well-connected team, gaining credibility should be Sun's
first short-term objective that needs to be clearly defined. Hiring veteran executive
and group operations manager Owen Brown from Digital is a great start.

2.Providing Specific Business (Competitive Pricing Strategy) and Operational Plans

for Computervision: Sun should provide specific business, such as a competitive
pricing strategy, and operational plans for Computervision to demonstrate
professionalism and sincerity. For example, if the services provided by Khosla default,
Khosla is willing to assume some of the risks. This approach will help Sun gain
Computervision's trust and encourage cooperation.
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Long-term objectives: Make a name in the industry, to become the new standard in
the industry.
Firstly, establishing a successful and enduring partnership with Computervision would
be Sun's primary long-term objective, fostering a mutually beneficial relationship over
time.
Secondly, leveraging this collaboration with Computervision not only for financial
gain but also for enhancing Sun's reputation in the market is pivotal. Expanding
market share and attracting new clients would naturally follow.
Thirdly, reinvesting the profits generated from multiple business deals back into Sun's
development is crucial. This strategy aims to ensure continuous technological
advancement, positioning Sun as a leader in workstation technology. Hiring highly
skilled and well-connected employees to build a strong and agile management team is
also essential for sustained growth and innovation.

3. What are the consequences of not doing this deal?

1. The company---Sun Microsystems might stop their development here. Missing out
the contract with Computervision would miss the chance to let the industry know the
Sun, and miss the chance to make a name in the global market.
2. On the other hand, miss this deal will also provide the chance for Sun’s competitor
----Apollo to grow stronger, to look more reliable. It will be much harder for Sun to
wait for another chance to beat his competitor in the future.
3. Financially strain: missing a deal with big company, it may cause Sun more
difficult to attract and retain top talent with competitive salaries and lack the funds
necessary to invest in infrastructure and company expansion.
4. Employees may lose faith in Sun Microsystems and start seeking opportunities
with competitors, resulting in higher employee turnover and potential loss of valuable
talent.
5. Without securing notable contracts like the one with Computervision, Sun may
find it harder to attract investment from other companies, impacting their ability to
secure funding for future growth and development.