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HP steals key Sun Microsystems sales exec

 Jun 04, 2008 03:57 PM UTC
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Filed under: Management, Hewlett-Packard (HPQ), Sun Microsystems (JAVA)

Hewlett-Packard Co. (NYSE: HPQ) has just stolen a key global sales head from competitor Sun Microsystems Inc. (NASDAQ: JAVA). Don Grantham has joined HP as chief sales officer after resigning recently from Sun. Sun CEO Jonathan Schwartz indicated that Grantham went to HP to help that company secure a Sun Solaris license before HP's acquisition of EDS Corp. (NYSE: EDS) was completed. Schwartz was seen grinding his teeth shortly thereafter as well.

Sun, which continues to sell its servers and software quite well, but is also not growing like many of its competitors (mainly HP) is undergoing a shakeup in its DNA. The company is forming a new "Emerging Markets" sales territory to take advantage of the huge growth occurring in China, India and related countries. It's 2008 though -- this is something that should have happened a few years ago. Even Dell Inc.'s (NASDAQ: DELL) efforts last year to eke out more sales from that region have proved successful recently. Sun is just now figuring this out?

Meanwhile, Sun saw a loss in its most recent quarter, but did see growth in those regions where it is now forming a sales territory to concentrate on that area. Grantham will have ultimate responsibility for this, and if his lieutenants can implement Sun's free software model (running on Sun's servers with Sun's support) in India and China, then Sun may have some bright quarters soon. HP and Dell won't be sitting idly by though, both companies are already heavily invested in the region. Sun will have some catching up to do.
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