To: E_K_S who wrote (40979 ) 2/8/2001 12:51:26 PM From: E_K_S Read Replies (1) | Respond to of 64865 Sun To Channel: We Messed Up (02/08/01, 10:59 a.m. ET) By Elizabeth Montalbano, CRN (http://www.techweb.com/wire/story/TWB20010208S0004) SANTA CLARA, Calif.—Sun Microsystems Inc. is reinforcing its commitment to the channel with new incentives, after admitting competitive practices in the past year, sources say. At the iForce System Providers Leadership Forum here Tuesday, Sun (stock: SUNW) met with 60 of its top iForce integrators and told them that its move to embrace nontraditional partners created a climate in which its salespeople were competing with the channel. "[Sun executive vice president of global sales] Moshood Jabbar basically got up there and said, 'I've been on the job for six, eight months, and we've been screwing the channel the whole time,'" said Bill Ames, president of Sun integrator partner GoBosh, who attended the meeting. Sun also said it "incentivized" sales representatives when it began engaging new types of partners, such as ISVs, ASPs, and Web integrators last summer, Ames said. "[Sun] basically said, 'We messed up and we're going to get it fixed,'" Ames said. Joe Womack, vice president of Americas eSun partner sales at Sun, has said that Sun's shift in strategy to embrace less traditional partners last year stemmed from new sales models and the dot-com phenomenon. According to Sun documents, "to ensure that customers have access to a full range of professional services, Sun has augmented its professional service offerings by structuring close working relationships with other professional services suppliers." The documents also state that Sun will "deliver new and enhanced [solution provider] offerings in the next 90 days" and that "our end users do not fully understand the Sun/[solution provider] business proposition." At the meeting, Ames said Sun outlined what it called "two big rules" when it comes to the channel: First, no special discounts to favor Sun salespeople over the channel; Second, all Sun programs must be channel-friendly. Sun also is offering its integrators better percentages for marketing-development funds (MDFs) for all products until June 27,retroactive Jan. 1, Ames said. Sun raised the MDFs rate to 4 percent on all hardware products from 2.36 percent on some computer hardware products. It also raised the rate to 10 percent from 2.36 percent on storage products . "I think it was a great presentation in how they are embracing the channel," Ames said. =========================================================== I wonder if this move will impact bottom line earnings? EKS