The Price Is Right
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.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.
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.