Sun is to close down its after-marketing arm, Sunexpress, following battles with resellers, according to a leaked memo from chief executive Scott McNealy.
The unit will be folded into parent company Sun Microsystems Computer Company (SMCC), according to a US source who had seen the memo, sent to staff last week.
Resellers have been unhappy about Sunexpress for months, complaining that the division has undercut them. In the leaked memo, McNealy admits Sunexpress has competed with both resellers and the company's direct sales arm. He says the reorganisation underlines why Sun created an operating company with the flexibility to change its business units as market conditions dictate.
"There will be significant gains for our customers, since this will help us present one face to the customer and reduce any perception of confusion or channel conflict in the field," McNealy said in the statement.
Sunexpress offers product information, pre-sales technical assistance and delivery of over 3,500 Sun and third party after-market products, including networking hardware and software, peripherals, applications and development tools. Without Sunexpress as a separate unit, Sun has six units remaining - hardware arm SMCC, software business Sunsoft, value added unit Sunservice, Sparc processor vendor Sun Microelectronics and R&D operation Sun Laboratories, with Javasoft as an autonomous entity.
Sunexpress president Dorothy Terrell and SMCC president Ed Zander will decide what to do with the business within SMCC, the source said, and determine Terrell's future role at Sun.
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