Jonathan Schwartz said Sun has already responded to threats by recently launching the Java Enterprise System (JES), Java Desktop System (JDS) and with plans to put 64-bit Solaris on Advanced Micro Devices Corp’s [AMD] Opteron processor.
In the aftermath of last month’s JES and JDS launch, Schwartz was commenting on a letter addressed to Sun CEO, and co-founder, Scott McNealy.
It claimed earning shortfalls and poor vision meant Sun has reached a point of crisis, facing a long painful demise like DEC, Data General and Compaq.
It highlighted Sun’s decision to maintain Solaris on Sparc, x86 and Linux on x86 as a weakness of choice, adding the company should set its priorities and de-emphasize Sparc. It also recommended jettisoning JDS and spinning out Java, which Sun has failed to monetize.
Schwartz said he agreed Sun had failed to monetize Java, leaving the way clear for competitors like IBM Corp [IBM] and BEA Systems Inc [BEAS] to thrive.
He estimated Sun stands to make $1.5 billion in combined JES and JDS revenue from the company’s top 65 customers alone, by offering low-cost, simplicity and security. Schwartz said JDS would help to commoditize desktop computing, leaving Sun the beneficiary.
Sun is also looking for software to drive up returns. Schwartz said customers who buy Solaris set a foundation for JES and also allow Sun to build-up storage and services.
He claimed Sun has hundreds of quotes currently with customers for JES, and is now planning a set of blueprints with systems integrators for use by customers when migrating off ISVs’ products onto software contained in JES.
The first blueprint, due by the end of this year, tackles migration from IBM’s WebSphere to Sun’s Java application server followed by a blue print for moving from Microsoft’s Exchange to Sun’s e-mail server, although no date was given for publication.
Schwartz noted the hardest migration would be from Microsoft’s Active Directory to Sun’s own Directory Server because of integration with management and identity.
Software sales staff have, meanwhile, been incentiveized through bonuses introduced in July that mean they stand to make two to five times more on a sale than a person selling Sun’s hardware. Twenty percent of sales managers’ compensation is derived from software.
Far from rationalizing Sun’s platform investments, Sun is diversifying. It plans 64-bit Solaris on Opteron with an early access release due next year. Sun believes it is giving customers choice in high-performance computing rather than segmenting Solaris.
It also emerged Sun has developed Solaris for Itanium, but this has not been productized because the company perceives little demand for Intel Corp’s architecture – a processor frequently derided by McNealy in public as Itanic.
This article was based on material originally published by ComputerWire.
