As I sit in more and more meetings with companies in the IP communications hardware space I keep hearing that these companies are moving from hardware to software because that’s where the money is. In fact, at a recent conference I spoke at, dealers of Avaya were very concerned about this move as software and hardware are treated differently from an accounting perspective.
In addition, it seemed as if the dealers at the conference were not ready to make the switch as they are comfortable selling and maintaining hardware and software is somehow foreign.
It seems however that these resellers and others will have to get used to this shift as even Sun is slowly moving to become a a major software vendor. Recently in fact Sun CEO Jonathon Schwartz mentioned that the MySQL acquisition is the most important acquisition in Sun’s history.
For years, Linux was the competition to Sun’s Solaris and Sun downplayed the open source threat. Now it seems the company has done a major about face and soon, the Sun brand will be synonymous with various open source solutions.