Sun’s Channel Strategy Rises Above Challengers

Sun Microsystems owes part of its first-place honors in this year's Annual Report Card Advanced Desktop and Workstation category to its successful channel strategy. And recent moves to further cement its relationships with integrators could propel the vendor to the top spot next year as well.

The Palo Alto, Calif.-based vendor beat its closest competitors, Compaq and IBM, by two points in channel strategy. In related channel areas, Sun earned the top spot in the communication and pre- and post-sales support criteria.

"Sun has reembraced the channel model," says Steve Bulmer, CTO at The Allied Group, a Glastonbury, Conn.-based authorized Sun reseller and e-business solution provider that offers a range of Sun products, including workstations and storage systems. "They've realized the value of the channel."

In fact, in July, Sun outlined its plan to allow integrators access to roughly 450 large accounts previously supported solely by the company's direct sales force. In addition, Sun granted more authority for marketing and sales to its field offices. The company also relies on its Channel Development Partners GE Access and MOCA to develop and deliver training to its integrators.

"Our partners tell us we do really well in consistency and strategy," says Joe Womack, Sun vice president of central area sales. "We have the lowest number of partners and the highest revenue. A lot of our channel's been with us for 10 years. We've stuck with our channel, and they've stuck with us. We're going to stay a technology company and have our partners provide the solution."

Having easier access to channel and end-user feedback will help Sun adapt to the changing business climate and continue to alter its programs accordingly, says Robbie Turner, vice president of client and technical market products at Sun.

"Whatever challenges they're facing, we're constantly changing our programs to meet their needs," Turner says. "As the business climate changes, we modify our programs to help our channel partners meet their customers' needs."

One such modification is the continual expansion of its Partner Portal, says Gayle Rust, director of U.S. productivity tools for Sun. The site gives integrators access to configuration tools and order status data.

"We deliver a one-stop partner location for partners, by partner type," Rust says.

"As we poll our partners, they've identified access to information and self-sufficiency as their number one concerns," says Sharon Blender, director of U.S. productivity tools. "It's open to all our partners. It's up to them whether they use it or not. It's responding to what partners and end users are asking for. They don't want to call a sales rep."

Despite the positive side of the Internet and integrators' overwhelming approval of Sun's approach, the vendor's direct online sales do irk some channel players.

"E-Sun is definitely a thorn in our side," Bulmer says. "People do go out on the Web to shop. We've countered by being very service-focused. We position ourselves as a total solutions provider."