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Channel Partners: Sun Needs Layoffs, Cost-Cutting: Page 2 of 7

“They need to run their business the way we run ours,” said one longtime Sun solution provider, who requested anonymity. “Cash-flow positive is not acceptable—it has to be profitable. I have no lack of confidence in Sun’s viability, but they have to keep their brand viability and they have to get costs down.”

This partner and others cited the return in February of Mike Lehman as Sun CFO as a positive sign the company plans to do what it takes. But several said they had expected Lehman to get the top job and thus have the power to enact tough changes. Before Lehman left, he had agitated for more cost cuts.

Greg Stroud, Sun’s vice president of U.S. partner and alliance sales, last week attended a meeting of several hundred Sun vice presidents where the hot topic was the leadership change which, he said, will not impact the channel. “We’re all about the channel,” Stroud said.

But partners are waiting for Schwartz to acknowledge their role in Sun’s ecosystem. The lack of coordination between Sun and its partners hurts customer satisfaction, they say.

“This try-and-buy thing is neat, but it’s not channel-ready,” said one partner, referring to a program under which prospects can evaluate and test Sun technology at no charge. “My customers are buying Niagaras from Sun’s site, and I don’t know about them. That means there are prospects out there, and no one’s calling them. A channel partner could help turn this into a real solution sale.”