The Workplace @ Sun

The Workplace @ Sun Mark Wartenberg Director of Workplace Infrastructure Design Sun Microsystems Sun Confidential: Internal Only 1

Guided By A Singular Vision A whole new world of work The Network Sun's Open Work Program is Evolving Open Work The Computer ● Work practices ● Technology ● Physical environment Sun Confidential: Internal Only 2

Like it or not...the way we work has changed THEN... NOW... Work was about traveling to Work is thought of as one location for a something you do... 9 to 5 day not somewhere you go Sun Confidential: Internal Only 3

A Distributed Workforce in a Global Workplace • Markets and customers are global • Talent is global and knowledge-based • Workforce is anywhere • Work locations are multiple • Work activity is more team-dependent • Growing desire for work/life balance • Significant increases in workforce mobility All Resulting in Significant Changes in WORK STYLES and WORKPLACE NEEDS Sun Confidential: Internal Only 4

Further Increases in Mobility Predicted “IDC estimates the mobile workforce will be more than 1 billion workers by the year 2011, with nearly 75% of the U.S. workforce 1 mobile by then. ” “Forrester estimates enterprise mobile employees will make up 73% of the 2 workforce in 2012. ” 1 Worldwide Mobile Worker Population 2007 – 2011 Forecast, IDC 2007 2 Enterprise Mobile User Forecast: Mobile “Wannabes” Are The Fastest-Growing Segment, Forrester October 9, 2008 Sun Confidential: Internal Only 5

New Work Realities Real Estate Trends rising costs of space, energy & operation Eco-Responsibility Growing Sensitivity to Environmental Issues & Sustainability Proximity to Customer Want/Need to Be Near the Customer Talent, Skills/Demographics “Squeeze” to Compete for Talent on a Global Basis Business Continuity Flexibility Needed for Regional Crises Business Agility Forecasting Headcount, Space entry to and exit from markets Sun Confidential: Internal Only 6

Trends that began more than 14 years ago • On any day, 25 to 30% of workspaces were empty. Today the utilization across Sun is 35 - 40% in field offices. 50-55% in campus engineering offices. • Availability of high speed internet connections at home • “Consumerization” of IT • Ubiquitous mobile phones. Advent of SMART phones • Web 2.0 and the rise of the “participation age” • Globalization • Growing corporate responsibility being “Greener” • Sun develops the Open Work (formerly iWork) program as a response Sun Confidential: Internal Only 7

So... what IS Open Work @ Sun ? • Sun's Open Work program is the embodiment of Sun’s vision: The Network Is The Computer • Designed to develops and enable a more flexible, agile, mobile 21st century workforce at a much lower support cost • 14 years in the making, Open Work is Sun's corporate culture • Integration of work practices, technologies, spaces, and policies enabling employees the choice to work wherever they may need to be 100% of Sun employees work with at least 1 remote team member Sun Confidential: Internal Only 8

Open Work @ Sun today Nearly 20,000 of 31,000 Sun employees: ● Are nomadic and have no assigned seat ● work from multiple locations ● work across IT platforms ● Reserve a seat/meeting room via online tool EVERYONE participates in Open Work ● Assigned: 5 days assumed in office: assigned seat ● Flexible: 1- 3 days/ week in office: reserve a seat ● Assigned Home: In office NTE 2 days/week ● No one is forced into a category. ● Manager has the final say over category nearly 60% of Sun's 34,000 ● 14 years of evolution employees work away from the office at least 1- 2 days a week Sun Confidential: Internal Only 9

Direct Benefits to Sun Reduced operating expenses ● Hundreds of millions saved in RE costs ● Substantial IT savings Enhanced employee productivity ● Increased employee satisfaction with flexible & innovative work environment Improve business agility ● Positions Sun to quickly and effectively respond to emerging markets ● growth with limited capital expenditure Avg. Annualized Cost (RE & IT) Attract and retain best, brightest Seat on Sun Site Mobile ● Access most innovative, available talent, $23,000.00 $11,000.00 regardless of location Avg. Set Up Cost Cost (RE & IT) $29,000.00 $12,000.00 Sun Confidential: Internal Only 10

Benefits to Customers & Partners • Enhance collaboration & relationships ● Expanding our footprint from 300+ locations to literally thousands around the globe ● Fosters better relationships, with more opportunities and venues in which to engage ● Sun employees' anywhere, anytime availability to customers and partners ● Improve business continuity & disaster response Sun Confidential: Internal Only 11

Benefits to Employees ● Improved job satisfaction ● Internal survey results show that our flexible and innovative work environment is the top reason 82% of employees said they would recommend Sun ● Reduce traffic/commute time ● 2.1 days per week working away from the office saved Sun employees an average of 2.5 weeks of work time* ● more than 50% of that work time was “given back” to the employer ● Save money ● Saved more than $1,700 per year in gasoline and wear and tear on their vehicles by working at home 2.1 days a week.* Sun Confidential: Internal Only 12

Benefits to the Environment Open Work Energy Measurement Project April 2008 ● In 2007 Open Work prevented 31,000 tons of CO2 from entering the atmosphere ● Energy consumption by equipment in a Sun office was twice that of home office equipment ● 520 watts/day at home vs. 1080 watts/day at a Sun office ● Commuting was more than 94 percent of each employee’s carbon footprint for work vs. 6 percent of total carbon emissions to power office equipment ● Working from home an average of 2.3 days per week, an employee reduces energy used for work by 5,400 Kilowatt hours/year Sun Confidential: Internal Only 13

What’s Next for Open Work? Sun Confidential: Internal Only 14

Evolving Open Work Support how people are already working by putting the network first If… Then ... Work from wherever you are is the norm Provide technology platform to maximize for an increasing population… use of the network – telephony, access, tools, and computing support 70% of the workforce engages in Provide a smaller, elastic, and remote or mobile work requiring dynamic physical and technical everyone to rely on distance collaboration… infrastructure that not only enables but encourages collaboration Employees come to the office Provide open, collaborative work studio-like to collaborate and interact environments & multi-use spaces plus transient with coworkers, and at least half of drop-in work spaces for visiting employees & all collaborative work is informal… partners. Network levels playing field Sun Confidential: Internal Only 15

A workplace that puts the network first ● Where you are matters less. Network links people Still Guided By A Singular Vision ● Talent & opportunities assumed to be but now... global ● Places are focused on collaboration ● What needs to be done on site ? The Network ● What can be done over the network ? is Everyone participates & contributes The Workplace ● ● Sustainability impact by eliminating commute ● Global business continuity is less challenging Sun Confidential: Internal Only 16

Changing workplace demands new behaviors To succeed we MUST find and adopt new ways to: ● Find & communicate with one another ● Collaborate ● Stay engaged ● Make our work visible ● Cultivate work community ● Interact informally Sun Confidential: Internal Only 17

Work Practice Manage by Results & Optimize Employee Performance • Develop skills for managing virtual teams ● Develop protocols for access & availability • New hire assimilation support & training • Budget & support for face-to-face contact • Performance management rewards results Sun Confidential: Internal Only 18

Technology Connecting People & Information Regardless of Location Put the network first !!! • Access from anywhere & everywhere • Shared Baseline Tools • Content : secure & network accessible • Focus on collaboration • Devices: portable & support baseline tools Sun Confidential: Internal Only 19

Physical Space Design Right design for the work to be done ● Current data tells we still have way too much RE ● Used at an average of 55% of capacity on any day (US). Includes those who have an assigned seat ● People are moving to more mobile & distributed workstyle much faster than RE/IT portfolio can react ● Less architecture, more tech driven by behaviors ● Office design should focus on group not individual ● A variety of work environments ● Measure and build to utilization Sun Confidential: Internal Only 20

Find and communicate with one another ● Presence Awareness ● Who is available, when and how ● Instant Messaging ● Shared Calendar ● Virtual Meeting Places ● Virtual Team Rooms ● Many tools are out there today. Your IT department may even approve of one or two ● Make presence over the network the number 1 group protocol ● This is NOT about just adding some tech tools. It is about adopting behaviors Sun Confidential: Internal Only 21

Staying engaged and collaborating ● Data, Documents, Opportunities ● Share your work.....your inbox is NOT a collaborative tool ● Synchronous and Asynchronous – Vyew.com ● Store your work on the network – Box.net, DriveHQ ● Virtual Team Rooms/wiki – Ning ● Virtual Worlds – Second Life : http://secondlife.com/ Sun Confidential: Internal Only 22

Staying engaged and collaborating as a group ● Connecting via video ● Desktop video – Skype Vidyo, Mirial ● From free to $50K for 40 “seats” ● In all interactions...body language counts !!! ● who is doing e-mail (or whatever) and who is engaged ● HD video over IP – a whole new world ● Virtual Worlds – Second Life : http://secondlife.com/ ● Virtual Team Rooms/wiki – Ning : http://www.ning.com/ ● Many other tools are out there. Your IT department may even approve of one or two ● Use video instead of the phone !!!!! Sun Confidential: Internal Only 23

Interacting informally... the hardest part Biggest concern about distributed workplace is loss of informal interaction ● Ambient video ● HD video from place to place ● Always on – an open window ● Live desktop video - Ustream, Mirial, Vidyo ● Group Chat Rooms ● Always open and buzzing ● Virtual Worlds ● in world becomes the default ● the “real world” is secondary Sun Confidential: Internal Only 24

Reinventing Sun's Physical Workplace Sun Confidential: Internal Only 25

Open Work needs to evolve with the workplace Sun Confidential: Internal Only 26

Why come to the office at all ? ● to meet vendors and partners ● to meet your team face to face ● meet and show off to clients ● use non-personal level ● Open, vibrant work studios infrastructure ● assemble with other teams Sun Confidential: Internal Only 27

Why come to the office at all ? ● to connect with global team ● the primary reason to come to the members using state of the art office should be to collaborate technology with other people in ways you cannot do over the network Sun Confidential: Internal Only 28

Prototype Test Kitchen Implementation Sun Confidential: Internal Only 29

Build and pay for what you need... Sun in the Americas Today Sun's Next Generation 27 workspaces, 4200 SF 29 workspaces, 1900 SF ● Full utilization of assets and reduced OpEx ● Supports same number of employees with a footprint that's 50% of the size ● Physical and technical infrastructure that enables employees to collaborate and be productive in the increasingly distributed environment Sun Confidential: Internal Only 30

Sun’s Next-Gen Work Environment Collaborative, Connected, Dynamic • Network connectivity is ubiquitous • Open, vibrant work studios • Team rooms for targeted group interaction • Breakaways for quiet, heads down work • Meeting rooms that serve a multitude of functions • The shared spaces (cafe/copy/mail) integrated to provide for spontaneous interaction Sun Confidential: Internal Only 31

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New Worksurface Sun Confidential: Internal Only 34

Sun’s Next-Gen Work Environment in SL 5900SF pilot area on Menlo Park, CA campus Sun Confidential: Internal Only 35

Still Guided By A Singular Vision but now... The Network is Thank you The Workplace ➭ mark.wartenberg@sun.com Mark Wartenberg ➭ Thanks mark.wartenberg@sun.com http://sun.com/openwork Sun Confidential: Internal Only 36

The Workplace @ Sun

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