The Price Is Right

By Peter Galli  |  Posted 2003-09-16 Print this article Print

Sun has already signed up a number of customers van den Hoogen said, showing them that its solution is more affordable than anything from its competitors. The price is also compelling versus buying the individual components from Sun, she said. "We understand that there are organizations that may, say, only have 500 employees and no customers on the Web. In that case, this is probably not the product for them. But if you are a large service provider or telco and servicing millions of customers, then this is an outstanding deal for you," she said.
Because of the annual renewal nature of this revenue stream, this has the potential to generate a sustainable, quantifiable revenue flow for the company, something that would be looked at positively by Wall Street financial analysts, partners and customers.
In another move away from past traditions, Suns entire sales force, including its direct and indirect channels, will now have the ability to sell the entire system. In the past, the company had restricted certain products to certain channels, including its own sales force. "Looking at the number of employees our current top customers have, were talking about close to 100 million. If you multiply that by $100, you can see the potential here. Im not saying thats going to happen the first year, but every existing Sun customer is a potential Java Enterprise System customer, and there are also potential new customers interested in the system," van den Hoogen said. Another advantage of the system is that Sun has integrated out complexity on the system level, with all the components integrated together. It will run on Solaris with SPARC, x86 and Linux, although the Linux distribution will lag Solaris by a quarter, she said. The product has just gone to beta, she said, adding that customers can order it now, but it wont ship until November. Next page: Suns alternative desktop strategy.

Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at


Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel