Sun prepares for brighter future

Restructuring and deal with Microsoft seen as welcome changes

Sun Microsystems was unusually busy last week, appointing new executives, making some staff redundant and patching up fights with arch-rival Microsoft.

Sun's appointment of Jonathan Schwartz as chief operating officer has been welcomed by partners.

Schwartz, previously executive vice-president of software, was involved in developing the Solaris 10 operating system and marketing Sun's software operations and Java technology. He will report to chief executive Scott McNealy.

Simon Welch, marketing manager at Sun distributor Clarity, said the appointment is a sound one.

"Schwartz is well-known in the channel. Sun has phenomenal strength in the channel with its software, and it's the software that makes a difference," he said.

Sun also announced that it will cut 3,300 jobs as part of a restructuring programme. Fiona Buckley, a representative at Sun UK, said: "There will be no local statements until Sun employees are informed [of company plans]."

Welch saw the job cuts in a positive light. "Sun is a partnering organisation, so while job cuts are never good news, less resources at Sun can only be good news for the channel," he said.

The vendor has also settled a number of legal disagreements with Microsoft, which will pay Sun a total of $1.6bn in settlement of antitrust and patent disputes.

The two companies have agreed to work together for 10 years, sharing technology including Windows server and client software, and Windows desktop communication protocols. Microsoft will continue to support Sun's Java Virtual Machine.

Jason Edge, managing director of Sun reseller Phoebus, said: "Even though Sun has had a couple of tough years, people write it off at their peril.

"Sun has the number-one Linux distribution on the desktop, and interesting things such as Project Lookinglass, the 3D desktop."