Ch@nnelWeb: Sun's $2B Cobalt Acquisition Brings It To Entry-Level Hosting, ASP MarketSep 20, 2000, 16:44 (0 Talkback[s])
(Other stories by Joseph F. Kovar)
"The acquisition makes Cobalt big real fast, says Stephen DeWitt, president and CEO of Cobalt. The appliance market requires full channel and system resources, he says. "At the end of the day, you are either No. 1 or No. 2 or nothing else. . . . The key is getting big fast. This lets us scale quickly."
"In addition to the products, Sun also gets a big team of Cobalt application developers, while Sun will provide Cobalt a much larger worldwide distribution base, Rinnen says. ... Cobalt has both direct and indirect sales forces, McFarlane says. "[Sun] can put a super charger behind the sales channels by giving them access to both cobalt and Sun channel partners," he says. "[Cobalt] gets the keys to the cookie jar."
"McFarlane expects twofold channel opportunities from the deal. "[Cobalt's] teams have partners that give us access to their market," he says. "And Sun's service provider market has been growing faster than Sun as a whole, giving [Cobalt's] people access to a big service provider base."