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Sun and EDS in co-marketing agreement

Tuesday 17 July 2001 12:08
Sun Microsystems and Electronic Data Systems (EDS) have announced a co-marketing agreement that they hope will generate $3bn (£2.15bn) in sales over the next five years.

Sun is to provide hardware, software and architecture, while EDS will provide services such as systems implementation, integration, consulting and outsourcing, said EDS spokesman Peter Rowe. The programme will be called the Sun-EDS Continuum of Services.

"We performed a joint review and looked at how the companies had performed historically to come up with the projected revenue. It's important to note that $3bn is an incremental figure and is above and beyond existing levels of revenue for both companies," Rowe said.

Financial terms for the deal would not be released, Rowe said. Though he added that the deal was not exclusive.

The joint initiative will be aimed at large corporate customers, and provides competition to IBM's Global Services division. "There are a number of companies in this market, but yes, IBM is clearly a competitor," Rowe admitted.

No companies have yet signed up for the joint services programme, though Sun and EDS have already identified 28 clients, according to Rowe. "We will announce the service formally this quarter, though some of the services are already ready and available," he said.

Sun's contributions will include Sun Enterprise servers, Sun StorEdge products, the Sun Open Net Environment (Sun ONE) architecture, Java technology (as well as Java technical consulting) and iPlanet E-Commerce Solutions software.

Sun and EDS are looking to offer corporate customers one-stop shopping when it comes to their Internet and networking needs, Rowe said. The companies will work jointly on development, promotion, marketing, revenue targets, planned cross-training, account planning, offering development and marketing strategies.

"The deal with Sun opens up a whole new marketplace for us, especially with small and medium-sized businesses. As for what we bring to Sun, our sweet spot historically has always been selling to large Fortune 500 companies," Rowe said.

Further information
EDS: www.eds.com
Sun: www.sun.com