Sun Microsystems Restructures

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One of the largest technology companies in the world is hit hard by the economic crisis and is forced to let go of a couple of thousand of its employees and reorganize the whole company. Sun Microsystems, the company behind many software products such as MySQL, Open Storage and Open Office, as well as many other networking hardware and software products, announced today that they will be restructuring the company to save them $700-$800 million a year.

"Today, we have taken decisive actions to align Sun’s business with global economic realities and accelerate our delivery of key open source platform innovations – from MySQLTM to Sun’s latest Open Storage offerings," said Jonathan Schwartz, CEO, Sun Microsystems. 

The decisive actions of course include the laying off of about 15 to 18 percent of their global workforce. This will affect about 5000 to 6000 employees.

Moreover, Sun Microsystems is also reorganizing the entire company into different business groups focused on boosting open source momentum and growing new sectors of the market who view technology as a competitive weapon. These business groups are, Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms.

Luckily their Press Release explained these business groups and introduced their head honchos.

Application Platform Software

Executive Vice President, Anil Gadre, will move from his position as Chief Marketing Officer to lead this newly formed group.

Charged with creating the highest value modern software business in the industry, the unit will build on Sun’s open source leadership position to capitalize on the global market’s demand for open application platforms for everything from databases to business integration services on servers, desktops and handheld devices.

This includes the entirety of Sun’s JavaTM technology franchise, MySQL open source database products, as well as Software Infrastructure including the widely adopted GlassFishTM Application Server and leading Identity management products. This group will also include the Sun Learning Services organization.

Systems Platforms

Under the leadership of Executive Vice President, John Fowler, Sun’s SolarisTM, Virtualization (including xVMTM and VirtualBoxTM), and Systems Management Software teams join the Systems organization to deliver highly differentiated and optimized computing, storage and networking systems.

Unlike any other technology provider on earth, Sun will be uniquely positioned to leverage its open OS leadership and virtualization portfolio to create durable competitive advantage for Sun’s systems business, and category-shifting innovations for customers.

The recently announced 7000-series of Open Storage products, leveraging open source ZFSTM technology, DTrace analytics, superior management capability, and unique storage engineering are only the beginning of this deep systems roadmap.

Cloud Computing & Developer Platforms

Working across all of Sun, Senior Vice President, Dave Douglas, will lead the Company’s efforts to capitalize on two trends: the increasing shift of customer and developer focus to web-based cloud services and Sun’s already established leadership position in the space through Network.com, the NetBeansTM developer platform, and the StarOfficeTM portfolio.

The unit will build upon Sun’s existing online developer community – one of the world’s largest – to firmly establish the company as a leader in cloud computing and grow this area into a significant driver of future revenues.

Finally, Rich Green, Executive Vice President of Software, has chosen to leave the Company. Green has been an instrumental force in evolving Sun’s Software strategy and successful business execution across its diverse portfolio.

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