Digital Edition

SYS-CON.TV
Sun Accused of Killing Secondary Market in Europe
ASCDI is saying Sun is breaking UK competition law and closing the secondary market in Sun products in Europe

ASCDI, the Association of Service and Computer Dealers International, has complained to the Office of Fair Trading in the UK about Sun, saying it’s breaking UK competition law and closing the secondary market in Sun products in Europe to anyone other than Sun by refusing to supply resellers with provenance information on Sun equipment.
 
Sun’s policy went into effect last year and ASCDI claims resellers have had to shift their business to other product lines and are holding large inventories of Sun products that either can’t be sold or can only be sold at a steep discount. One reseller, it said, has been forced out of business.
 
The trade association estimates the market in used Sun products in the European Union to be worth $1.4 billion this year and under normal circumstances, it says, resellers would see a market share of $533 million. “If Sun behavior continues unchecked,” ASCDI says, “not only will this share drop, other manufacturers may follow suit, forcing independent resellers out of the market and giving manufacturers near monopolies for their respective products.”
 
ASCDI says Sun is the only OEM refusing to cough up the information.
 
It wants an order from the authorities that Sun is acting anti-competitively and telling it to provide the information “in a timely manner, without disclosure of such requests to Sun’s direct sales force on a fee-free basis.”
 
Sun took a UK reseller called Amtec to court charged with infringing its trademark for trafficking in a Sun system that was originally sold in Israel and wended its way through several European countries to Britain. Sun has told resellers they can’t sell used equipment that wasn’t made for the territory and need the paperwork to prove it was but won’t give it to them.
 
Sun sued Amtec on the basis of an EU law that says machines can’t be sold without the permission of their trademark holder.
 
Ultimately Sun’s policy has an impact on the worldwide secondary market. See, it seems that 40% of US machines wind up on the European market.
 
Meanwhile, we read in the papers that a two-week 25th anniversary Sun promotion really ticked off resellers because Sun cuts prices on many of its servers, storage, software and service by 50% or better but only for people who buy direct from the company. Its offer was e-mailed to customers including clients of its resellers. The resellers’ scream was reportedly so loud that at press time Sun was scurrying to make changes and cut them in.

Wait! There's more to the story. You're missing it unless you subscribe!

About Virtualization News
SYS-CON's Virtualization News Desk trawls the news sources of the world for the latest details of virtualization technologies, products, and market trends, and provides breaking news updates from the Virtualization Conference & Expo.

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1

ASCDI, the Association of Service and Computer Dealers International, has complained to the Office of Fair Trading in the UK about Sun, saying it's breaking UK competition law and closing the secondary market in Sun products in Europe to anyone other than Sun by refusing to supply resellers with provenance information on Sun equipment.




ADS BY GOOGLE
Subscribe to the World's Most Powerful Newsletters

ADS BY GOOGLE

ChatOps is an emerging topic that has led to the wide availability of integrations between group cha...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an over...
The cloud era has reached the stage where it is no longer a question of whether a company should mig...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and ...
The need for greater agility and scalability necessitated the digital transformation in the form of ...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting ch...
While some developers care passionately about how data centers and clouds are architected, for most,...
"Since we launched LinuxONE we learned a lot from our customers. More than anything what they respon...
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every ...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily ...
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - w...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Ser...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy hig...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis too...
"Cloud4U builds software services that help people build DevOps platforms for cloud-based software a...
The question before companies today is not whether to become intelligent, it’s a question of how and...
Kubernetes is an open source system for automating deployment, scaling, and management of containeri...