Sun Partners Express Cautious Optimism, Though Outlook Unclear

While dead calm for some, several VARs here at this week event, held at the Amelia Island, Fla., Plantation resort, said the month of September saw a return to investing by customers. In some cases, the return of business was more than a welcome breeze. For AMC of New York, it was a storm of activity.

"September was our best month of the year," said Steve Israel, executive vice president. Customers, he noted, have stepped up to steep investments in equipment purchases. One deal, he added, could lead to the sale of several thousand monitors.

Even as customers extend the life of desktop PCs, entry-level servers and other pieces of equipment to four years or more, the prolonged drought in IT spending is catching up with those who have delayed purchases. They now find themselves depending on tired and out-dated gear ill-suited to perform demanding tasks required today. VARs report here that solutions sales that save customers money have picked up as customers prepare for 2003. Harry Kasparian, CEO of Corporate Technologies of Burlington, Mass., for example, said server consolidation projects are in demand, as are discrete investments into IT architectural improvements.

"It's clearly picking up, though long-term we still don't see a big driver pushing IT to new heights," he said.

The comments of these and other VARs at the Net@work conference echo what MOCA division president Rich Severa told attendees on Wednesday. "VARs are making gains, Sun VARs in particular," he said.

Severa pointed out that his business was up last quarter year over year for the second consecutive time and that he believes the fourth quarter could continue the upward trend. Moreover, Arrow's MOCA division is profitable, he added. Given the momentum, MOCA continues to invest in new tools and product lines for partners, and scope out new opportunities in the market. At this week's event, for example, Arrow's MOCA division will unveil a new tool to help process Sun services contracts . In addition, the company is also showcasing a new partnership with Symantec.

"We believe we can help find new partners for Symantec as well as help our customer base find new opportunities in the enterprise with one of the best known leaders in the space," Severa said.

As a result of the expansion, the business of the Arrow division known for its prowess in Sun products distribution is changing. Once 95 percent of the company's sales were Sun-oriented. Today, that figure is more like 80 percent, though it's sometimes more in any given month.

That said, Severa noted that MOCA remains a Sun-focused business. Four months ago, that was a courageous thing to be given the internal tumult and upheaval at the company. But thanks to recent changes in management and philosophy, Severa thinks he's sitting in the best competitive position in the market.

"Sun is gaining market share, continuing to outspend others in R and D and making the changes necessary to maximize opportunities with partners," he said. In particular, Severa credited Sun executive vice president Robert Youngjohns for rejuvenating Sun's emphasis on growing a business through partners.

Since taking over sales responsibility, Youngjohns and his lieutenant, U.S. sales vice president Bill Cook, have made sweeping organization changes and approved a raft of new programs for partners to be unveiled on Thursday here at the MOCA event. They include a new program similar to the Storage Elite program for Sun ONE partners and new recognition programs for Sun partners who do business exclusively around the Sun platform, among other things. Sun will formally roll out these programs at the end of October and provide exact details then. But Sun channel planners are clearly excited to have new benefits to provide to partners who are driving business despite the tough economy.

"Nothing we asked for this time was rejected," said Gary Grimes, vice president of partner management and sales.