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AT&T/SUN Alliance

Quarterly Governance Meeting – May 18, 2005. AT&T/SUN Alliance. Reaffirm what is working… Identify Areas for Improvement… Develop plans for action…. Agenda. Introductions & Welcome Tom / Joe M. Alliance Initiatives Joe M. / Tom Sales Update Pam / Ray 2005 Plans

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AT&T/SUN Alliance

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  1. Quarterly Governance Meeting – May 18, 2005 AT&T/SUN Alliance Reaffirm what is working… Identify Areas for Improvement… Develop plans for action…

  2. Agenda Introductions & Welcome Tom / Joe M. Alliance Initiatives Joe M. / Tom Sales Update Pam / Ray 2005 Plans Marketing Alison / Stacey SunFunds Readout Marketing Calendar AT&T Utility Computing Offer Update Ray Mt. Laurel / Willow Rd. Project Update Joe Ciocco Sun FY 06 Discussions Chuck / Tom W. Getting To Green Action Items Chuck / Craig / Johnnia Closing All

  3. Sales Awareness Executive (Rooney, Spears, Lieto, etc etc..) AT&T Sales Representative Awareness/Training Sun Sales Representative Awareness/Training Close ties to Offer Development…need offers in the marketplace Multiple meetings with Antieri teams (Shammas, Costello) and Keshavarz’s team AT&T 2005 Capital Budgets are major inhibitor Differentiated Value Proposition compared to traditional Sun VARs Left on their own, AT&T Sales teams can not create this… must be led by Pam’s GTM team Work in progress as we do more joint account planning to add value…GM, Tribune, Coke, Harley-Davidson, Caremark, Hotels.com Keys to Success from 02/05 Gov. Meeting

  4. Alliance Initiatives • Reseller Second Source • Reseller International Expansion • 7 Space Acquisition • 3-Way VoIP/IPT Solution with Lucent/Sun/AT&T • RFID • Sun Led GTM (Dave Cross) • 3-Way with SunGard/Sun/AT&T in BCARs space • Cycle Farm • StorEdge 9900 certification • Training • Tier 2 & 3…ACS…Selczuk training of Nicastro’s team on competitive landscape • BCARS marketing • Video IM • Daytona

  5. Sales Update

  6. Sales Awareness / Sales '05 Sun sales team completed activities to drive lead generation (Feb 05 thru May 05) Need Update or possibly delete RAY/PAM

  7. Executive Summary – Revenue / Sales '05 Current Q4 Sun Pipeline $XXXM Need Update… RAY/PAM Does not include AT&T Revenue which is anywhere from 2X to 4X Sun’s revenue

  8. SunAllianceRevenue… Need Update RAY Funnel by Lead Source

  9. Lead Trending Need Update RAY

  10. Executive Summary Revenue / Sales '05 January 2005 Sales • Pearson • GM • Bed Bath and Beyond • Hitachi • Keynote January 2004 Sales • 0 Sales Need Update RAY • 2005 Goal $52M TCV (Annual) • 2005 Goal $ 25M ACV (Annual) • YTD Goal $4.3M TCV YTD Jan. 05 • YTD Actual $1.351M TCV YTD Jan. 05 • 31% • YTD Goal $2.08 M ACV YTD Jan. 05 • YTD Actual $1.351M ACV YTD Jan. 05 • 64%

  11. Inhibitors to“Green” SE Resources: • AT&T doesn't have SE-like resources. Sun REs require these resources from partners. Sun will give preferential treatment to Sun partners that provide these resources (750K Sirius) Awareness: • How do we create greater awareness in the general sales force? Two plus years into the Alliance and we are not at an awareness level where we need to be. AT&T sales teams are network centric. How do we get them to be more Sun aware and understand where Sun plays in the market place? (Example NYC, CBOT, etc. ) AT&T needs effective messaging/awareness because Sun team can’t be everywhere. Responsiveness and Sense of Urgency: • Lack of communication and responsiveness of many/most AT&T Sales Teams. (Tribune, Dolex, Caremark). There seems to be a lack of urgency or they are busy with other priorities. Dolex is at risk ($700K - $1M) due to delay in quoting. Storage Certification: • AT&T proposed Utility Computing (Hitachi) model for a new i2 implementation. Decision is still pending but looks very favorable, expect to hear by mid-March. IBM has dominated the account, and performs better on i2, so AT&T and Sun worked hard to craft the architecture and winning UC value proposition. AT&T proposed using their "standard" EMC-based storage services as the "easiest path" to take on this challenging deal. Sun needs to get our storage certified as an alternative to EMC, and get AT&T to give their Hosting customers a choice between EMC and Sun (500K) Sun Grid/Utility: • Need Sun to share vision and strategy on Evolving Grid/Utility Model. AT&T can’t consider new offers until this model is shared with and understood by AT&T May need to be deleted Tom

  12. Marketing Update

  13. Marketing – Successes • Recent Activities: • 24 Hours on LaSalle Street Event • Financial Services Vertical Training/Partner Fair in NY • INN Roundtable. • Current and near term planned activities: • CPM West Show (May) • Government Executive Partner Forum (May) • Sun Network (Sept.) May need to be deleted Stacey/Allison

  14. Marketing – Future Activities Need Update Stacey/Allison

  15. Marketing – SunFund: Infrastructure Need Update Stacey/Allison See Handouts

  16. AT&T Utility Computing Offer Update Need Update Ray/Tom • Re-launched 3/21: • First Sale…ESRI • Sheryl Kitchen shared UC learning with Costello’s Product Team • SunFunds were critical in meeting ESRI certification needs • Contract negotiations took way too long… 1-31-05 RJ & TM

  17. Mt. Laurel / Willow Rd. Project Update Need Update Joe Ciocco Sun and AT&T are currently working together to design and implement the office of the future for Sun Microsystems. Under Sun’s CIO direction and leadership Sun has selected the Mt. Laurel, NJ office to perform a Proof of Concept for an AT&T Hosted Thin Client Desktop solution. AT&T will host Sun’s equipment in an Internet Data Center (IDC) and provide network and network management services. AT&T (Hossein Eslambolchi – AT&T CIO) has requested that we use his office in Menlo Park (Willow Road) as a test site for AT&T so that both companies can assess the value and savings of this new IT model. If the POC proves to be successful, Sun will evaluate how it might expand the Hosted Desktop throughout its corporate infrastructure, and Simultaneously develop a GTM offer, which will be delivered by both sales forces

  18. Sun FY 06 Plans/Direction Need Update Joe M. XXXXXXXXXXXXXXXXXXXXXXX

  19. Key Takeaways Need Update ALL • Significance Progress made by both sides on key action items from 02/05 Governance Meeting • Looking at new revenue sources and process changes to enhance sales results…2006 impact • Tough 2005 sales environment for selling solutions/managed services • How can we take advantage of current trend to sell CPE? • What foundation can we lay for StorEdge 9900 series managed storage? • Significant focus and resources on Utility computing will allow us to determine offer viability by 7/1/05

  20. Final Thoughts & Thanks You Closing

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