With ULTRASPARC customers of Sun Microsystems can have powerful microprocessors that drive the Internet and enterprise networks. The proper vision and the proper focus can only take a company so far. You have to provide the goods and services needed for your vision to transform itself into reality. It?s a matter of implementing efficient processes. Taking time and cost out of the system and getting the right products to market at the right time. This also means putting together the best possible solutions for our customers through innovative programs and strategies partnerships.
To sustain its leadership in service logistics, Sun Microsystems sought to leverage information technology to streamline the parts replenishment process. New internet-based applications had the potential to all but eliminate the strategic role of distribution centers in the network, putting the focus on moving information, not parts. Sun worked with USCO Logistics to implement a new Sun business model that leveraged information systems and the Internet to link supply chain partners. With Sun?s direction and support, USCO created a web interface, which transmits a variety of order, delivery and inventory transactions from remote stocking locations and repair vendors to a database at USCO headquarters in Connecticut. The solution enabled the creation of a Virtual Logistics Network in which more than 50 “best in-class” partners ? manufacturers, repair vendors, delivery companies and logistics service providers ? collaborate to deliver ONE seamless solution for Sun?s customers.
As a result of the new model, Sun will achieve:
? Enhanced customer service
? Reduced inventory
? Reduced cycle time
? Increased supply chain efficiency
According to Sun?s Peter Pazmany, Senior Director of Business Development and Operations, Enterprise Services, the Virtual Logistics Network for service parts management shifts the focus from moving parts to moving information, using the internet as a key enabler. “Our solution enables Sun to increase parts availability and customer satisfaction, while aggressively managing inventory levels and profitability,” says Pazmany. “It provides Sun customers and shareholders a truly world-class service
solution.”
Human Resources
Sun employees are the most important resource and the basis for Sun’s success. Sun strives for an environment characterized by respect for each individual, where cultural and ethnic diversity are blended by teamwork into a harmonious work force. Every year, the President and CEO, Scott McNealy, reaffirms Sun’s commitment to diversity. Sun has been recognized numerous times for its strides and achievements in diversity.
Employee Benefit Plan
The Company’s 1990 Incentive Plan and other employee stock option plans provide the Board of Directors broad discretion in creating employee equity incentives and authorize it to grant incentive and non-statutory stock options, as well as certain other awards. In addition, these plans provide for issuance of non-statutory stock options to eligible employees to purchase common stock, at or below fair market value, at the date of grant, subject to certain limitations set forth in the 1990 Incentive Plan.
Employee Stock Purchase Plan
To provide employees with an opportunity to purchase Sun common stock through payroll deductions Sun established the 1990 Employee Stock Purchase Plan. Under this plan, Sun’s employees, subject to certain restrictions, may purchase shares of common stock at 85% of the fair market value at either the date of enrollment or the date of purchase, whichever is less.
Employee 401(K) Plan
The Company has a 401(k) plan known as the Sun Microsystems, Inc. Tax Deferred Retirement Savings Plan (the “Plan”). The Plan is available to all regular employees on the Company’s U.S. payroll and provides employees with tax deferred salary deductions and alternative investment options. Employees may contribute up to 16% of their salary, subject to certain limitations.
Information Systems
As an established leader in High Performance Computing (HPC) and network technology, Sun Microsystems, Inc. is helping HPC customers capitalize on the Net Effect – the trend driving the exponential growth and increasing opportunities of the Internet as users, devices, services, data and demand for high availability continue to multiply. At the Supercomputing 2000 show in Dallas, TX, Sun is equipping customers, new and old, to utilize the power of Web-centric computing and provide massively scalable systems that span the network. At SC2000, Sun will be demonstrating the products, services, and technologies that comprise a virtual supercomputing farm, allowing customers to harness unused resources (CPUs, memory, and storage) across the network to handle the most data-intensive applications.
“It’s clear that the future of supercomputing is network-centric, and lies in both the shared power of smaller, parallel web-serving systems and large, cooperating clusters of SMP servers,” said Steve Campbell, Director of Marketing, Enterprise Systems. “Rather than focusing solely on traditional islands of computing power in a single location, Sun is applying the principles of Net Effect to bring disparate commercial and scientific communities the hardware they need to share data and resources across the globe.”
In the last year, Sun has established itself as the second-leading HPC provider, growing its market share by 20 times since it entered the supercomputing market in 1996 (according to IDC’s mid-year report on the High Performance Technical Computing market, published August 30). In the “World’s Top 500 Supercomputers” list announced on Friday, November 3, Sun captured the second-highest number of systems with 92 entries, representing more than 18 percent of the total list. Recent announcements illustrate Sun’s continued commitment to the HPC market, and its expanded efforts to tackle new generations of commercial applications such as decision support, data mining and bio-informatics.