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What Sun got wrong

692 points · 437 comments · chmaynard

  1. schmichael · · focus · HN ↗
    As much as this resonates with me it smacks a bit too much of an Engineering vs Sales fight. Engineering blaming Sales for not selling, and Sales... where is the voice of Sales? By 2005 Sun's margins on hardware sales had to be under vicious attack from Dell and all the old incumbents. Google and Amazon were ushering in the era of commodified compute and soon offering it on demand on the cloud. Proprietary hardware platforms were under the most vigorous multi-front assault since the inception of computing.

    Meanwhile I have to imagine Sun, like IBM and everyone else at the time, was noticing what incredible margins you get from software services. No factories or fabs. No supply chain logistics. Sun's proprietary hardware business should have been dying (or at least radically shifting: a product/engineering problem, not a sales one) by all market indications of the time.

    So if I was a sales person and got a call from a startup for a colo's worth of machines... I probably don't have much incentive to pick up. The startup will probably fail, as most do, so the opportunity to build a relationship and sell higher margin services is probably nil. Startups hate paying for that stuff anyway.

    I have incredible respect for Bryan Cantrill. He obviously knows far more about this situation and business than I do, so he's almost definitely more correct than I am...

    However I would ask readers to at least be curious why sales didn't pick up the phone. Were they "bored?" Or was it a rational choice and much deeper problems with Sun's business model were the cause of their demise?

    1. rbanffy · · focus · HN ↗
      > I probably don't have much incentive to pick up.

      This is what Dell got right - for their sales team, this was an easy process - the product line was simple and easy to customise. Their sales reps wouldn't spend much time creating the proposals and could spend the remaining time building relationships with a lot more customers, some of which wouldn't fail.

      > curious why sales didn't pick up the phone. Were they "bored?"

      Unless you create incentives for bringing new customers, they'll leave the new names for last.

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