Memorandum submitted by Sun Microsystems
Limited (EU 5)
INTRODUCTION
1. Sun welcomes the opportunity to give
account of its involvement in the UKeU project.
SUN IN
EDUCATION
2. Sun as a company started 21 years ago
in higher education (SUN stands for Stanford University Networks)
and has always maintained a strong focus on this sector. To this
end Sun has a dedicated global line of business (that has existed
since its inception), which focuses exclusively on the education
and research community and includes all education establishments
from nursery schools through to further education colleges and
Universities.
3. Sun has a number of formal programmes
to complement the on-going account management activities including
the Centres of Excellence programme spanning teaching, research,
entrepreneurship, and hiring, providing avenues for partnership
between Sun, educational institutions and third parties. In the
UK, Hull University, Oxford University, University of Edinburgh
and Imperial College, London all are accredited Sun Centres of
Excellence. Sun is also currently a leading member of all established
eLearning international standards bodies.
BACKGROUND TO
SUN'S
INVOLVEMENT IN
UKEU PROJECT
4. Sun believes that a massive increase
in the use of eLearning is essential if the increase in student
numbers (including lifelong learning) that must occur is to be
achieved. Further, Sun believes that eLearning should be based
upon an open standards framework such as that defined by Joint
Information Systems Committee and the global learning consortia
IMS which ensures that the eLearning world stays open, competitive
and gives users best value for money.
5. Sun believed that the UKeU had the potential
to be a major force in the growth of the use of eLearning and
accordingly it wished to work in partnership with UKeU to achieve
this. Sun viewed its investment as furthering Sun's and the UK
education's strategic goals while creating a joint business stream
of great value to the UKeU, UK Universities and Sun.
SUN'S
INVOLVEMENT IN
UKEU PROJECT
6. In November 2000, Sun responded to the
initial invitation for expressions of interest in a joint venture
to create UKeU that was advertised in the Financial Times.
The goal of the tender was to select a private company that would
be willing to invest in the new UKeU. The OJEC tendering process
was used and through a series of selection processes, Sun was
eventually selected as the private sector partner.
7. Sun's proposal included the following
main points:
— Sun invests £5.5 million into
the UKeU;
— Shares of equivalent value in
UKeU created by Sun's investment were to be gifted to a charitable
trust set up for the benefit of UK higher education institutions;
— Sun would work in partnership
with the UKeU to sell the companies products (including the eLearning
platform) worldwide; and
— Sun would provide marketing
assistance.
8. In October 2001 Sun and UKeU entered
into a Strategic Agreement which captured the above mentioned
points of Sun's proposal.
9. In November 2001 UKeU issued through
the OJEC tendering process a request for proposals for a Platform
Systems Integrator and Datacentre Managed Services Provider for
the eLearning platform.
10. In February 2002, through this competitive
tendering process, Sun was selected by UKeU to be the Platform
Systems Integrator and entered into a supply agreement with UKeU
to deliver a basic eLearning platform with minimal functionality
that was known as ELP 0.1 or the interim release ("Interim
Release"). The Interim Release was intended to be an interim
solution to give UKeU a production eLearning platform to deploy
courses, attract students and become self-funding as soon as possible.
11. In July 2002, partway through development
of the Interim Release, the UKeU renegotiated the contract with
Sun and the parties agreed to implement a full version with more
functionality known as ELP 1.0. The total fixed contract price
for both Interim Release and ELP 1.0 was initially £9.65
million, but as a result of a number of requests for change to
specifications by UKeU during development, this was revised with
agreement between the two parties to approximately £11.7
million.
12. In March 2003, the Interim Release was
delivered and deployed in a live environment and students commenced
UKeU courses on the eLearning platform.
13. In May 2003, the parties agreed in a
stage plan, for ELP 1.0 to be delivered in modules comprising
ELP 1.a, 1.b, 1.c and so on with 1.h as the final module ("Stage
Plan"). Under the Stage Plan, UKeU would pay 10% of the contract
price on signature of the Stage Plan and a certain percentage
of the contract price on acceptance of each module by UKeU.
14. Sun delivered the modules and acceptance
certificates were signed by UKeU between 29 May 2003 and 3 June
2004.
15. The Interim Release and each module
as it was accepted by UKeU, was deployed into a live environment.
At the time of delivery of final module ELP 1.h, there were approximately
140 students using the eLearning platform.
16. On acceptance of each module by UKeU,
Sun issued the relevant invoice. Approximately £4.2 million
in total was invoiced for modules ELP 1.a-1.f which UKeU failed
to pay.
17. In October 2003 Sun commenced negotiations
with UKeU for payment of the outstanding invoices while continuing
to deliver technical helpdesk services and continuing development
of final module ELP 1.h in accordance with the Stage Plan.
18. In November 2003 following the above
discussions, UKeU paid approximately £1.3 million in total
to Sun which reduced the invoices outstanding.
19. In March 2004, HEFCE appointed Robson
Rhodes as administrator of UKeU. Sun UK senior management had
on-going meetings with Bob Stubbs, from Robson Rhodes, who was
appointed as Executive Deputy Chairman of UKeU.
20. In 9 June 2004 a further payment of
£880,000 for previous modules was made on delivery and acceptance
by UKeU of final module ELP1.h.
21. In 18 June 2004, UKeU served a notice
of termination of the supply agreement on Sun effective immediately
with work and invoices remaining unpaid.
CURRENT STATUS
OF THE
ELEARNING
PLATFORM
22. Sun has performed no further work on
the eLearning platform since termination by UKeU. Sun has however,
had several discussions with HEFCE to discuss how the jointly
owned intellectual property rights in the eLearning platform may
be deployed in a free community source form to benefit the UK
education community.
CONCLUSIONS
23. Sun continues to invest in education
and would be willing to participate in a similar project in the
future. Sun is committed to the development of open eLearning
and believes that the initial goal of the project was a valid
one, and the type of eLearning environment that it sought to bring
about, will be essential in the future if the number of students
and life-long learners is to increase.
6 January 2005
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