Service Revenue Mirage
Many SUN sale go through our partner, a deal involves
- Sun HW/SW
- HW/SW support Service contract
- third party HW/SW
- installation service
- professional Service
The Service Revenue that one talks about are Item 4 and Item 5.
- Item 1 and 2 will go to SUN.
- Item 3 will not go to SUN.
- Item 4 usually will not go to SUN
- Item 5 sometime may go to SUN.
Many partner want to use their SE for Installation and professional service and they will collect those service revenues themself.
In case SUN get the professional service deal, if we contract out the work to our partner, then we will only collect a small piece of the action.
To collect big service revenue, SUN will need to do the whole thing ourself and do many repeatable business in a short and efficient way.
Net service revenue is not easy thing to collect. I have a friend used to work at XXX, XXX has a big Consulting org, he said even at XXX they are worry about the revenue come form PS. For new technology, you will need to hire outside consultants, and they cost big buck. To use your own people, you will need to train them continuiously, this cost money also.