Sun clearly suffered some from being a bit too early to what would become cloud computing —- didn’t help that their tagline was “the network is the computer”, which IMO was a bit too obtuse, because I didn’t really understand what it meant (sounded like a violation of the 7-layer OSI model lol) until I saw actual cloud computing come about.

But as some sibling comments indicate they already had a lot of the software infra for distributed computing the way it eventually came to be done today, with SOA/microservices, service discovery, or serverless lambdas etc. via frameworks like EJB or JXTA. They were admittedly pretty cumbersome, like the contemporary equivalents COM/DCOM, and made the fundamental mistake of trying to abstract away the fallacies of distributed computing, but also solved most of the common problems involved.

Potentially they could have pivoted to monetizing that software infra even if it got deployed on arbitrary hardware, which may have tided them over until they could spin up their own cloud service, even if it was a fast follow to AWS. However Sun seemed committed to making their expensive servers their primary business model and relegated the software to “loss leader” complements.

If they had just looked at how services were being developed on Linux + commodity servers, they’d have seen they already had offerings in that space that could be monetized.