Maybe. That was before cloud computing based on a much cheaper, faster and more pervasive Internet became such a big thing, plus there were at least 3 things that caused them to ultimate fail to where they "retreated" to:

A problem with insufficient error checking and correction plus SRAM chips from IBM that Sun claimed had higher error rates than they anticipated was handled dreadfully, they wouldn't help customers without forcing them to sign NDAs, they initially blamed customer environmental conditions, etc., In short, they showed they couldn't be trusted, which ought to be fatal in the enterprise market.

They consciously decreased the quality of their Intel servers, two things I remember was penny pinching by removing one tried and trusted Intel Ethernet chip and substituting a Marvell chipset one, and kept changing the lights out hardware without changing model numbers, which is what Joylent blamed for their stopping buying from them.

If you couldn't charge it to a credit card, or bought enterprise quantities of stuff, like more than a couple million dollars, you simply couldn't buy their stuff back when it was higher quality, they insisted you go through a VAR or reseller, but few of those were really interested in selling the hardware, and many of the few that might were squirrelly. So before AWS et. al. became a thing, a lot of companies reluctantly bought Dell hardware simply because they could, and by the time they graduated to buying hardware at "enterprise" levels they already had the in-house expertise to manage cheaper but lower quality Dell systems.

And the latter problem, making it hard to buy their stuff (which damages or kills more companies than you think, it's also been a big problem for HP and one reason they didn't get this business), is one of the things that killed DEC.

So comparatively simple failures to execute can be a big part of a company failing at the same time it's facing the Innovators Dilemma.