Foundation built on third parties: all Case tools for Sun's platforms provided by 200+ "Catalyst" - one of six articles outlining the CASE strategy of major hardware vendors

Software Magazine, March 15, 1990 by Mike Bucken

FOUNDATION BUILT ON THIRD PARTIES

Sun Microsystems Inc., Mountain View, Calif., estimates that about 30% of its 1989 revenues can be directly traced to computer-aided software engineering.

That total is virtually absent of software revenues because Sun depends almost entirely on third-party vendors to provide both front-end and back-end Case tools. Sun does offer internally developed language, debugger and compiler programs that are used primarily for development.

Since its beginnings in the early 1980s, Sun has aggressively promoted its adherence to open standards in seeking out third-party applications software developers.

So far, that approach has succeeded in technical markets. Now, Sun is looking to repeat that success in commercial markets, including Case for DP departments of large organizations, the company said. Vaughan Merlyn, chairman of Case Research Inc., a Bellevue, Wash., consulting firm, said that the effort to penetrate commercial MIS with Case software for Sun workstation products has yet to experience any great success.

Merlyn maintains that most commercial software development operations are using PCs running MS-DOS or OS/2 and some Macintoshes from Apple Computer. Among Case Research clients, Unix-based workstations are yet to be found, Merlyn said. Paul Henderson, product line manager for software engineering technology, acknowledges that the Sun Case penetration has so far been confined mostly to the engineering and scientific markets, but notes that Sun workstations have become popular in selected commercial markets.

Also, Henderson noted that the DP groups of some major commercial areas have started developing software in what have traditionally been considered scientific languages, such as C and Fortran, which could open doors for Sun.

Henderson also said Sun is hoping that its networking offerings, including the Network Software Environment that incorporates some network-wide tools for version control and configuration management, will sell the Sun platform to commercial sites looking to develop distributed applications.

THIRD-PARTY PROGRAM

Henderson said that Sun is spending development dollars on making language compilers, debuggers and optimizers, but plans to depend on third-party Case vendors, at least in the short term. "We have a very rich third-party program," said Roberta Gray, Case market development manager at Sun. Gray said Sun lists between 400 and 500 Case software packages in a portfolio of 200 to 250 vendors of Case software.

"We have decided to go to the third parties rather than make [Case] applications software ourselves," Gray said. The company's strategy, according to Gray, is to depend on the Catalyst third-party program for key software packages that the company markets for all target areas.

The Catalyst program incorporates thousands of applications that run on Sun hardware, which are published in book form and used by Sun salespeople. However, Sun only recommends packages to potential customers, who must purchase the software from the third-party vendors.

Gray noted that in recent months the company has created "tiers" in its Catalyst program, and is working more aggressively with several key software developers. In the Case arena, she cites Interactive Development Environments Inc. and Cadre Technologies Inc. as closer joint marketing partners.

She also said Sun encourages third parties in any Catalyst program tier to jointly work in linking products for Sun workstation offerings.

However, Gray said the firm will continue to enhance its own software development tools. While Sun may recommend third-party language packages, "we will continue to do all of our own compilers," Gray said.

David Sharon, president of Case Associates, an Oregon City, Ore., consultanting firm on software development, predicted that Sun will soon have to cut the number of Case marketing partners because of increased pressure from its user base.

Sharon predicted that Sun and other major players (IBM and Hewlett-Packard/Apollo) that depend on third parties will eventually reduce their recommended offerings.

"The customers are looking to the company that will take responsibility" for sales and support of Case systems, he said. "They are spending millions on hardware and hundreds of thousands on software," which will likely force the hardware vendor to provide the support.

Today, independent software vendors are responsible for virtually all software support, Sharon said.

He said many of his clients are no longer willing to allow a workstation maker to give them a list of hundreds of software packages. "The customers want a recommendation. Sun will have to take a stand, eventually."

Sharon said any company that depends solely on packages supported by third-party developers has a "high-risk strategy" in place. He predicted that Sun will likely acquire or invest in companies that offer key Case software packages that are required by commercial and technical software developers.

When that effort is completed, it will result in "a further consolidation of the Case industry," he said.