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From the News Desk
Thursday, 15. November 2007
Sun and Dell Team Up to Rule
At the Oracle OpenWorld 2007 conference held in San Francisco, Sun Chief Executive Jonathan Schwartz announced that Dell would begin selling servers preloaded with Sun's Solaris 10 operating system. Dell agreed to sell PowerEdge servers pre-installed with Solaris 10 after seeing an increasing customer demand for the OS on its servers.
According to the agreement, Dell would keep all revenue from server sales and resell Sun services and support packages. Revenue from the latter would be shared between the parties. Dell customers could go directly to Sun to buy multiyear support subscriptions, which include patches and upgrades.
“At first glance the deal may seem odd, since Dell gets the hardware sale, while Sun only gets revenue from the support contract. But Sun sees a chance to start a dialogue with the millions of Dell customers downloading Solaris,” said Richard Green, VP and general manager in Sun's software business.
Sun views this partnership as a key way to ensure its long-term financial health. It also announced a partnership with IBM Corp. in August that allows Solaris to run on IBM servers. And in September it indicated it would build servers with Microsoft Corp.'s Windows operating system installed. On the other hand Dell is trying to regain its financial footing by altering core sales strategies, having lost its No. 1 worldwide ranking PC sales to Hewlett-Packard Co. last year.
Yet the two companies still do less business, put together, than HP alone. In the second quarter of this year, IBM sold USD 4.1 billion worth of servers, while HP sold USD 3.7 billion, Sun sold USD 1.76 billion and Dell USD 1.5 billion.
Dell hopes the partnership with Sun announced Wednesday morning will broaden its offerings to large corporations and also extract sales out of customers who are going in different directions.
Financial terms of the deal were not disclosed.
According to the agreement, Dell would keep all revenue from server sales and resell Sun services and support packages. Revenue from the latter would be shared between the parties. Dell customers could go directly to Sun to buy multiyear support subscriptions, which include patches and upgrades.
“At first glance the deal may seem odd, since Dell gets the hardware sale, while Sun only gets revenue from the support contract. But Sun sees a chance to start a dialogue with the millions of Dell customers downloading Solaris,” said Richard Green, VP and general manager in Sun's software business.
Sun views this partnership as a key way to ensure its long-term financial health. It also announced a partnership with IBM Corp. in August that allows Solaris to run on IBM servers. And in September it indicated it would build servers with Microsoft Corp.'s Windows operating system installed. On the other hand Dell is trying to regain its financial footing by altering core sales strategies, having lost its No. 1 worldwide ranking PC sales to Hewlett-Packard Co. last year.
Yet the two companies still do less business, put together, than HP alone. In the second quarter of this year, IBM sold USD 4.1 billion worth of servers, while HP sold USD 3.7 billion, Sun sold USD 1.76 billion and Dell USD 1.5 billion.
Dell hopes the partnership with Sun announced Wednesday morning will broaden its offerings to large corporations and also extract sales out of customers who are going in different directions.
Financial terms of the deal were not disclosed.
