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SUN ADDS COMPUTER POWER TO TELECOM EQUATION

NEW YORK-Executives of Sun Microsystems Inc., Palo Alto, Calif., announced initiatives May 5 designed to advance outsourcing of computing at the enterprise level by using the Internet to deliver software applications, electronic commerce transactions and network services.

“The most critical core competency is understanding what your core competency is. Service providers are becoming information utilities,” said Scott McNealy, chief executive officer.

“(Computer) networks are getting fast, reliable and affordable. Service providers can own the pipes or the wireless networks and outsource the rest.”

As voice communications go digital over Internet Protocol, wireless carriers will have the opportunity to offer “Web tone and [application] tone over their networks,” McNealy said.

“This will give them new line items on their bills.”

In the telecommunications sector, Sun’s definition of the end user applies not only to individuals accessing new online services through their handsets but also to companies looking for third-party solutions to operational needs now handled by in-house information technology departments.

For example, a carrier might co-brand with Sun an offering of a suite of functions like e-mail management and billing systems for its corporate customers. The telecommunications company would provide the transmission pipe and become a value-added reseller for the services. Sun would supply the computing power and other companies would design the actual Web-based services.

McNealy said a new compensation system for Sun’s sales representatives is “an industry first” and is designed as an incentive for them to help service provider customers generate demand and stimulate revenues.

The Sun “ServiceProvider.com” plan includes new pre-configured servers it has developed. The company also has opened a new Service Provider Competency Center in Menlo Park, Calif., that it said will be used for “sizing, testing and tuning of end-to-end Sun and third-party SP services [to] help ensure smooth deployment of net-based services.”

Sun said it will provide to certain high-end customers both system availability guarantees and on-site technical account management and planning. It also will offer all its service provider customers Internet architecture consulting, performance analysis and capacity planning advice and on-site training in various aspects of information technology management.

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