Delivering the keynote at Sun Microsystems' quarterly product update for the first time since being promoted to president and chief operating officer in April, Jonathan Schwartz in Shanghai, China, Tuesday highlighted the company's strategy to expand its services effort with new products and support for customers.
Schwartz says the strategy will include offering more flexible subscription-based products. "The role of network innovation at Sun is around driving not only the technology agenda, but also driving the business agenda," Schwartz said. "We're bringing innovative pricing models, the Java enterprise system to other people's software and hardware, and scalable enterprise offering on Opteron."
Among the new offerings is a subscription-based Sun Preventative Services that brings together more than 100 different services in one portfolio designed to reduce costs and increase service levels in the data center, he says.
"The benefit to us is we're shifting from about 20% of our revenue being reoccurring and the rest transaction based, to flipping that formula, and allowing us to radically reduce our cost of sales," says Larry Singer, Sun's senior VP of global market strategies.
Sun also is launching a Java Enterprise developer promotion to offer development tools running on the Solaris operating system and bundled on Sun's latest entry-level Opteron-based servers, at a 3-year subscription price of $1,499 per year.