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December 17, 1997

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Sun is setting up 100 per cent subsidiary in India

The $8.5 billion Sun Microsystems is planning to set up a 100 per cent subsidiary in the country.

Victor Cheng, Sun Microsystems, director, industry sales development, Asia South, and country director, India, said Sun is focussed on developing the market in the country. "In fact we will be applying for a wholly owned subsidiary today," he said yesterday.

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However, he refused to divulge any more details regarding the investment proposed or the specific issues mentioned in the application.

Sun Microsystems started operations in India only two years back. Since then it has developed the Indian market through its distributor and channel partners. It is concentrating on government, education, telecom, finance and manufacturing sectors in the country.

Cheng was speaking at a meeting organised to announce its tie-up with Hughes Software Systems, a subsidiary of Hughes Network Systems Inc.

The partnership is in the form of an agreement whereby HSS will build solutions around the Solstice Enterprise Manager and Solstice Telecommunications Management Network products for the telecommunications marketplace.

The strategic alliance is the only one formed by Sun in the Southeast Asian region for SEM and TMN and its operations will extend to cover the entire South Asian region.

Through this venture, Sun is looking to benefit from the boom in the telecom markets in Southeast Asia, especially since telecom has proved to be the largest vertical market for SEM.

Under this agreement, HSS will provide products such as TMN standard compliant mediation devices and services, which include software development, consulting and turnkey integration to telecom equipment suppliers and service companies.

Sun will provide support to HSS through transfer of expertise, joint sales and marketing. The expertise centre for this initiative will be at HSS headquarters and software development centre in the electronic city, Gurgaon, near Delhi.

Another such centre will be opened in Bangalore next year, according to Arun Kumar, president and managing director, HSS.

The two companies are also looking at options of starting a competency centre for SEM, a benchmarking centre and development of Java-enabled enterprise network management solutions in the near future.

HSS has invested about $1.5 million in the venture and has recruited 25 people for this. Sun's investment is more through technology transfer and the intention to move some of its software development projects to developers in India.

Earlier: India is strategic partner, says Sun president

- Compiled from the Indian media

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