Sun tries web auction route to market

Sun Microsystems is considering using online auctions to sell its products, and is testing the channel by inviting bids for its latest workstation on eBay.com.

The company introduced a high-end workstation this week - the Sun Blade 1000 - which is available in 750Mhz and 900Mhz versions, and starts at about $10,000. A special entry-level 600Mhz configuration Sun Blade 1000 workstation will be auctioned at eBay, with bidding expected to start soon.

John Shoemaker, executive vice president at Sun's system products group, said the 600Mhz version is relatively slow and would normally have been written off as part of the development process. However, the possibility of establishing dynamic pricing has encouraged Sun to look at the online auction process.

"Some at Sun believe online auctions are the future and others think it will come to nothing," said Shoemaker. "The 600Mhz is a slow product and probably wouldn't have sold at all."

A limited number of 600Mhz workstations will be auctioned, the first five of which will be signed by Sun's chief executive Scott McNeally, who is a fan of the auction idea.

The notion is not completely new for Sun, as it has previously sold Ultra 5 and 10 machines on an ad hoc basis at eBay and European auction site QXL.

"We find that very small companies who normally wouldn't buy are bidding. It could be a new channel for us," said Shoemaker, adding that machines sold at auction have consistently fetched equivalent or higher sales prices.