Sun To Channel: We Hear You, Direct Promotion To Change

Sun Microsystems is changing the way it is handling its 25th Anniversary Sale in response to solution provider complaints that the promotion is a direct slap in the channel's face.

On Monday, Sun started a two-week 25th Anniversary Sale promotion under which certain popular server, storage, software and services products were made available to customers with discounts ranging up to 60 percent, but only if those products were purchased direct from the vendor.

That promotion caused intense reaction among Sun's solution providers, who were concerned that Sun was reaching directly to their current and potential customers with pricing they couldn't possibly match, setting the stage for customers to cancel orders to get the special prices direct from Sun. They were also concerned the new prices would be taken as street prices going forward, hurting both Sun and its channel partners.

Solution providers on Thursday said Sun is reacting to the partner revolt by changing the promotion in significant ways to allow channel participation, including deal registration. Details of the changes are expected to be outlined in a meeting on Thursday afternoon.

One solution provider, who asked to remain anonymous, said that Sun got the message, and that the company's top execs, including Tom Wagner, vice president of Americas region partner sales and CRN channel chief, and Tim Lieto, senior vice president of Americas sales, were contacting channel partners to explain what happened.

Another solution provider said he was amazed to see how quickly Sun reacted to the channel's concerns.

"Sun corporate is generally very slow to change," the solution provider said. "I've never seen them react so quickly."

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