Skip Links

Network World

  • Social Web 
  • Email 
  • Close

Sun moves to indirect sales for most US customers

By James Niccolai , IDG News Service , 07/23/2008
  • Share/Email
  • Comment
  • Print

Sun Microsystems is moving to an indirect sales model in the U.S. for all but about 300 of its largest customers, a step designed to help boost its flagging revenue.

The change means customers who aren't among Sun's biggest U.S. accounts from a revenue perspective will be switched to one of its reseller partners in the coming months, said Tom Wagner, vice president of Sun's North America partner sales organization, in an interview on Tuesday.

"Effectively we're going to go 100 percent 'channel' below the top 300 or so accounts," he said. That means Sun will depend wholly on its partners to generate leads, architect systems, close deals and provide much of the support and services for those customers.

The move will likely be welcomed by Sun's 600 or so channel partners in the U.S. because they will no longer be competing with Sun for business. Sun believes it will give them more motivation to attack areas of the market where Sun's "share of the wallet" is low today, and allow Sun to scale its sales efforts to target those accounts, Wagner said.

It is less clear how the move will be received by customers. "At the end of the day it'll be a 'wait and see' in terms of the customer reaction," Wagner said.

"We have a portfolio of partners who play pretty high up in the value stack and who we believe can provide quality technical support and system engineering resources," he said. But he acknowledged that some customers may have "very specific demands about how we handle their accounts."

"We'll have to deal with that when it comes to it," he said.

The so-called Partner First initiative is limited to the U.S. today and Sun didn't announce any plans to extend it overseas. Companies will sometimes try a new strategy in one region and roll it out worldwide if it's successful.

Sun does about two-thirds of its business through channel partners today and the proportion outside the top 300 accounts is roughly the same, Wagner said. "We're turning over what we believe is a fairly significant amount of our existing business" to the channel, he said.

The plan was announced internally on July 11 and relayed to Sun's partners through a conference call last week, Wagner said. The goal is to complete the transition by the end of this quarter or early next, which means by September or October.

  • Share/Email
  • Comment
  • Print
Partner Content

Explore the Ultrium Edge

The powerful tape technology can address data security with tape encryption as well as long term data protection.

Find out more

Disk and Tape Square Off

Discover what disk and tape really cost -- and which solution provides lower total cost of ownership and optimizes energy use for your organization

Download the White Paper

Don't Fall For The Myths

The Clipper Group explores the truth behind the myths of tape, digging into the misconceptions in the disk vs. tape debate.

Download the White Paper

Will You Add Tape Too?

Over two thirds of disk-only users look to add tape back into storage infrastructure according to recent survey.

Download Survey Information

Comment
Login
Forgot your account info?
Add comment
Anonymous comments subject to approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed

Whitepapers

Windows Vista: Necessity and Opportunity

The Vista era of Windows is here. Yet most organizations will retain Windows XP alongside new Vista...

A Unified Approach to Workload Lifecycle Management

Discover how solutions that support workload profiling and enable anywhere-to-anywhere workload...

Consolidated Disaster Recovery Using Virtualization

Server virtualization is providing enterprises of all sizes with exciting new options for...

Webcasts

Migrating to Windows Vista: Necessity and Opportunity

The Vista era of Windows is here. Yet most organizations will retain Windows XP alongside new Vista...

Turning information into a Competitive Advantage

Companies today are realizing that competitive advantage is harder to sustain when based solely on...

PoE Plus: Impact on the PoE Market

The standard for Power over Ethernet (PoE), IEEE Std. 802.3af(tm)-2003, advanced networking,...

Special Reports

Mapping a Successful Virtualization Course

Managing a newly virtualized environment can be tricky. Effectively deploy this technology with the...

Data Center Decisions

Data Center Decisions Made Easier. Learn about the latest tech trends that impact your data center...

Closing the Loop: Extending Wireless LAN Security to Wireless Printers

Enterprises cannot overlook wireless printers when assessing network security. The print jobs and...

Get instant email notification when white papers, webcasts, executive guides are added to our library. Stay informed and up-to-date with the latest on IT Technologies with Network World's Resource Alerts.
Network World,to go. Wherever you are. Breaking news delivered to your mobile device. Select the hottest topics in networking and start receiving Network World on your mobile device today.