Sun Programs Aim To Boost Server Sales

Sun Microsystems Wednesday unveiled two new programs aimed at boosting sales of some of its UltraSPARC III-based servers and UltraSPARC IV-based upgrade kits.

The first program, entitled 50/50 5, takes a page from a car dealer or department store by offering free interest, with conditions. Under the program, customers who prefer to purchase UltraSPARC III-based Sun Fire 4800 and Sun Fire 6800 servers can acquire them by paying 50 percent down, with the balance due within the next 12 months at zero percent interest.

Six months after signing the contract, the customer will have the option to purchase an UltraSPARC IV-based upgrade kit for the server, with the cost of the kit spread over five interest-free payments, said Kris Snow, senior director of Sun Microsystems Finance.

Under the second program, "Two Payments on Us," the same servers can be leased for 24 months at below market rate leases, with Sun paying the first two monthly payments for the customer, said Snow. If the customer purchases the UltraSPARC IV upgrade any time starting six months after the lease is signed, the cost of the upgrade is amortized over the remaining term of the lease with no interest, she said.

Paul Perricone, U.S. director of Sun Microsystems Finance, said the program lets customers move to the UltraSPARC III platform now, and offers them the flexibility to upgrade to UltraSPARC IV on their own schedule.Sun is expected to start shipping UltraSPARC IV upgrade kits in the second quarter.

Perricone said about 30 percent of Sun Microsystems Finance's business goes through channels in the U.S. He also said the organization expects to offer new programs specifically for channel partners in the second quarter.