During the dot-com bubble, Sun experienced dramatic growth in revenue, profits, share price, and expenses. Some part of this was due to genuine expansion of demand for web-serving cycles, but another part was synthetic, fueled by venture capital-funded startups building out large, expensive Sun-centric server presences in the expectation of high traffic levels that never materialized.
The share price in particular increased to a level that even the company's executives were hard-pressed to defend. In response to this business growth, Sun expanded aggressively in all areas: head-count, infrastructure, and office space.
The bursting of the bubble in 2001 was the start of a period of poor business performance for Sun. Sales dropped as the growth of online business failed to meet predictions. As online businesses closed and their assets were auctioned off, a large amount of high-end Sun hardware was available very cheaply.
-Sun Microsystems, Wikipedia
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