Sun Ups The Ante

At a recent sales meeting in Burlingame, Calif., Sun told its sales force and several key partners it will compensate Sun salespeople as if $1 of Sun ONE software sold equals $4, resulting in higher commission payments, sources said.

"The message was that the priority for the entire [sales organization is software," said David Chao, vice president of sales and marketing at Navidec, a solution provider and Sun partner based in Greenwood Village, Colo.

Barbara Gordon, Sun's vice president of software sales, said Sun does not publicly disclose its sales compensation models. However, she confirmed that selling software is a top item on the Sun sales team's agenda.

"We are putting a much greater emphasis on software sales this year than ever before,as evidenced by our R and D investments, our coverage investments as well as our compensation plans," Gordon told CRN.

Shawn Willett, principal analyst at Current Analysis, said it's common for compensation on software sales to be higher than on hardware sales, since prices for software are generally lower.

But Navidec's Chao said Sun's new compensation model is high even by software sales standards and should inspire Sun's sales force to shift their priorities.

"These hardware sales guys are going to have to focus on how to sell some software deals," Chao said.

He and other solution providers say that's a good thing, since Sun's hardware sales team will turn to partners to learn how to sell and integrate software, opening up new services opportunities.

"You're going to have the sheer number of salespeople that now need the services side much more than they ever have," Chao said.

Laura Hurlbut, director of strategic alliances at ePresence, a systems integrator in Westborough, Mass., said she's recently been working more closely with Sun's Global Sales Organization because Sun salespeople are seeking advice about the software business.

"I'm definitely having more productive meetings than this time last year," Hurlbut said. "They need systems integrators that know how to sell these solutions and integrate them."

But despite the opportunity with Sun on the software side, solution providers still point to conflict with Sun Professional Services.

"There's a big strong message [from Sun to partner, partner, partner, but they haven't figured out how to do that and run Sun Professional Services," said a solution provider, who requested anonymity.

The solution provider said while Sun is taking some "positive steps" to support partners with the new software sales plan, "Sun [Professional Services is out there and they're not sure what to do."

Mike Shook, president of Cary, N.C.-based solution provider Strategic Technologies, said his company and Sun Professional Services recently competed on a deal to provide services for systems management,technology he said Sun doesn't even sell. "We're wondering, 'What in the world is that?' " he said.

Shook said that Sun and Strategic Technologies have been "wonderful partners for years," but he suspects the trying economic environment is testing Sun's commitment to the channel.