Skip the navigation

McNealy Lays Out a Plan for Profits at Sun

Tells partners changes are in store -- but not for basic technologies

By Patrick Thibodeau
April 26, 2004 12:00 PM ET

Computerworld - SAN DIEGO -- If you're a Sun Microsystems user, expect some changes. Your servers may come free as part of a software and services package. Subscription pricing plans, including one for Solaris, will expand. And there will be a growing emphasis on utility pricing models.
At least that's the vision Sun CEO Scott McNealy described at the iForce partner conference here last week. Despite having given up the title of president to former software division head Jonathan Schwartz in a management reshuffle earlier this month, McNealy made it clear that he's in charge and that he and Schwartz are "joined at the hip."
McNealy compared his leadership style to the aggressive, top-down approach of a military leader, pointing to former U.S. Army Gen. Norman Schwarzkopf, commander of Operation Desert Storm, as the type of leader he admires. It's an apt comparison: McNealy is under the gun to improve profitability after Sun posted a net loss of $760 million for its most recent quarter and cut 3,300 employees.
"You are going to see a lot of changes here," McNealy promised his business partners, whose fortunes are closely tied to Sun's. McNealy said that he's focused on improving profitability and that the credibility of his vision, at least on Wall Street, will rise only if the bottom line rises -- despite the fact that Sun has $7.5 billion in cash.
"The opportunity exists; the execution will determine the outcome," said Anna McDermott, president and CEO of GE Access, a General Electric Co. subsidiary that serves as a value-added distributor for about 800 Sun resellers.
Technology on Track
Talisen Technologies, which makes secure remote-access software, also sees an opportunity. Two months ago, the St. Louis-based company become a Sun partner and is integrating its product into the Java Enterprise System, a software stack that includes Sun's directory, application and portal servers.


Jonathan Schwartz, president of Sun Microsystems
Jonathan Schwartz, president of Sun Microsystems

"We think the technology is first-rate," said Jeff Brandt, Talisen's director of business development for the aerospace sector. "The question is, how do you get the message out?"
McNealy said Sun isn't changing its core technology direction; for instance, it isn't backing away from its UltraSparc processors. In fact, McNealy said he sees chip throughput improvements as essential to enterprise customers for emerging tasks such as processing radio frequency identification data from thousands of connected systems.
And Sun has no plans to make a fundamental shift to Linux. It will offer Linux in its desktop systems and on some servers, but it intends to stick with


Additional Resources
Forrester Consulting - Optimizing Users and Applications in a Mobile World
WHITE PAPER
Solving application issues over the WAN requires careful consideration. Based on their independent research, Forrester Consulting offers recommendations on how to tackle application performance issues, insufficient bandwidth and the inability to quickly restore users in a disaster.

Read now.

Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

App Development White Papers
The Keys to Distributed & Agile Application Development
How leading firms are winning with strategies for efficient application development, without relying on co-location.
Overcome Top 7 Admin Challenges of Active Directory
As Active Directory's role in the enterprise has drastically increased, so has the need to secure the data. Gain insight on creating repeatable,...
Insiders Can Ruin Your Company. Take Action.
Did you know that 80 percent of threats to an organization come from the inside? The threat from insiders is often overlooked in...
Top Solutions and Tools to Prevent Devastating Malware
Custom malware frequently goes undetected. According to Forrester Research, the best way to reduce risk of breach is to deploy file integrity monitoring...
Streamline Compliance and Increase ROI
Streamline, simplify, and automate compliance related activities; especially those that impact multiple business units. This white paper from NetIQ, outlines solutions that will...
All App Development White Papers
App Development Webcasts
Reduced TCO for Communications Applications with New Oracle SPARC Servers
In this webcast learn how Oracle's new SPARC T4 servers and SPARC Supercluster deliver the security, performance, and scalability required for 4G network...
Optimizing Networks for the Cloud
Join guest speaker, Rohit Mehra, IDC Director of Enterprise Communications Infrastructure, to explore current trends, discuss best practices for optimizing Data Center and...
Apps QuickStart Series Part 2: Designing and Deploying SQL Server on VMware vSphere
Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as...
Apps QuickStart Series Part 1: Designing and Deploying Exchange 2010 on VMware vSphere
Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and...
Customer Spotlight: How IPC The Hospitalist Company Implemented Oracle on VMware
Have you been looking to hear about customer's experiences with the new VMware vCenter Site Recovery Manager product? View this webcast to learn...
All App Development Webcasts
Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs