Sun Microsystems Inc. said Wednesday it has begun a restructuring that will eliminate individual operating companies in favor of a set of divisions focused on products, technologies, and services. The seven divisions will be under the direction of Sun's new chief operating officer, Ed Zander.
Perhaps the most notable of the restructuring plans is the consolidation of much of Sun's Java operations, which will be managed by JavaSoft president Alan Baratz. The new Java division will include all of JavaSoft, Sunsoft tools, and developer relations. Sun also formed two new divisions focused on the networked storage and the consumer/embedded markets.
The company said the changes were being made to build its strength in network-computing operations and accelerate its product-development processes. A Sun spokeswoman said that, although the realignment should reduce redundancies, it would not involve any layoffs.
Zander, who just took on the COO role in January, said in a statement that the restructuring will not change the company's focus and strategy, but will allow Sun to build on its success by responding to and capitalizing on new markets and new opportunities quickly and effectively.
"Our goal is to align the organization more tightly and streamline internal processes so that we achieve greater operational efficiency and provide a unified face to the customer," Zander said.
The Sun spokeswoman said the new structure would also reduce the autonomy of different units and reduce competition among them.
Sun's five operating companies -- Sun Service, JavaSoft, Sun MicroElectronics, Sun Microsystems Computer Co., and SunSoft -- will become divisions under the new structure. SunSoft's name will change to Solaris Software.
