Sun Microsystems is moving to an indirect sales model in the U.S. for all but about 300 of its largest customers, a step designed to help boost its flagging revenue.
This doesn't make any sense. How do you make MORE money by not selling directly? How does adding middle men who also take a cut of the profits increase YOUR profits?
by no (not verified) on 8/22/08 at 11:35 am |reply
reduces an expense
This reduces the expense involved in direct support of customers whom Sun has scoped out and decided "We spend more in selling and supporting these smaller customer than they spend" so Sun's idea is probably 'cut the expense of dealing with the little guys, yes we make less revenue due to the channel's bite but we come out ahead by reducing the expense to sell and support these little guys."
If they could make more money selling/supporting the little guys, they wouldn't lay off 2500 support/sales staff and take less money due to the channel.
by reellynotso (not verified) on 2/23/09 at 2:31 am |reply
Sidekick: The Good News & the Bad News Either way you look at it Microsoft Data Center management did not follow standards or best practices in this failure. In which case it makes me wonder more about the outsourcing of corporate data much less personal data.
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This doesn't make any sense.
This doesn't make any sense. How do you make MORE money by not selling directly? How does adding middle men who also take a cut of the profits increase YOUR profits?reduces an expense
This reduces the expense involved in direct support of customers whom Sun has scoped out and decided "We spend more in selling and supporting these smaller customer than they spend" so Sun's idea is probably 'cut the expense of dealing with the little guys, yes we make less revenue due to the channel's bite but we come out ahead by reducing the expense to sell and support these little guys."If they could make more money selling/supporting the little guys, they wouldn't lay off 2500 support/sales staff and take less money due to the channel.