Hypercom Corp. said Monday that it and Sun Microsystems Inc. have developed a server-based system designed to let merchant banks and nonbank transaction processors upgrade more easily.
The goal is to give customers more flexibility in adapting point of sale networks to growth and other system demands.
The strategic alliance links Hypercom's expertise at the "front end" of points of sale with Sun's power in computer servers, the companies said.
"We deliver a complete solution that allows transaction processors to meet new requirements without having to replace their legacy systems," said George Wallner, chairman and chief technologist of Phoenix-based Hypercom.
Hypercom's Ascendent software and strategy, which emphasizes preservation of existing infrastructure investments, will be integrated with Sun's Enterprise servers and Solaris operating system. Capacity can be added and systems upgraded rapidly and cheaply, the companies said.
A large retailer facing a system upgrade with hundreds of proprietary terminals is seen as likely to rely on a Sun server rather than having to download new software to each unit.
"Institutions want to preserve" their technology investments, said Rob Hall, vice president of worldwide financial services marketing at Sun Microsystems in Palo Alto, Calif. "Other people walk in and say 'Rip out those big machines-we've got a PC-based architecture that will solve your problem.'
"Well, they don't want to rip it out-because it works," Mr. Hall said. "They spent money to make it work."
"Many applications in the point of sale environment are getting more and more complex," requiring more memory, programming, and downloading time, Mr. Wallner said. Point of sale terminals, relying on a server, can run a "minimal amount of intelligence"-essentially the "thin client" or network computer philosophy that both Sun and Hypercom embrace.
Reliance on servers can help merchants and processors embrace a host of new options such as loyalty programs, advertising, and electronic signature capture.
The cost would range from $50,000 to $2 million, depending on the size of the client and its system configuration.
