Sun To Offer SunFund Money Up Front

Sun Microsystems

Sun executives admitted the format in which solution providers now apply for marketing funds was a faulty process. First, solution providers must devise a marketing campaign, get approval from Sun, create an invoice and then wait for Sun to reimburse them.

The process could take 60 days before the solution provider gets the cash back. That's too long, said Michael Walsh, director of partner marketing at Sun.

"There have been a number of process points that have added time and complexity to get those funds," Walsh said at GE Access' New Frontiers Conference held here.

To remedy that, Sun plans to implement a Web-based system this fall in which the marketing funds are automatically deducted from a solution provider's SunFund account up front, Walsh said.

"If [solution providers want to do a marketing campaign, they'll have access to our [marketing literature, they'll be able to customize it and select online what mailing list to use," Walsh said. "At the end, it will calculate the cost, you hit the button to OK the work and the amount is deducted from your SunFund account."

Solution providers at New Frontiers were happy to hear about the new program.

"That's a great, great change. One of the ways to build up your pipeline is with good marketing events, but you have to be sure the money is there to pay for it. The ease of knowing how much you have will be great," said Jim McHugh, vice president of sales at Strategic Technologies, a Cary, N.C.-based solution provider.

The new process should eliminate the reimbursement cycle, as well as decrease the average cost-per-piece for materials, Walsh said.

Users will select from preapproved marketing messages, but they can customize them with their own logo and information, Walsh said.

Because the basic template is preapproved, there should be little delay in getting campaigns started more quickly, Walsh said.

"They can also pay for it by credit card or other means if they don't have enough SunFunds for that campaign," he said.

"It's always better to get the money up front, and we use every cent of our SunFund," said Jim Rockwell, vice president of the Sun Business Group at Acropolis Systems, a Milpitas, Calif.-based solution provider.

The amount of available SunFund funds should be about the same as last year, Walsh said. What may change is how those funds "in the 10s of millions [of dollars" are allocated in the future, Walsh said.

"Everything is open to discussion. How do you earn it? Does everyone earn the same level? That's the way it is right now, based on a percentage of sales. We might look to do other things. But overall the bucket itself stays the same," Walsh said.