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Jonathan Schwartz and Paul Otellini, the chief
executives of Sun and Intel, respectively, are expected to share the
stage in San Francisco on Monday to announce a broad partnership
between the two companies.
Sun Microsystems is expected to resume using Intel's Xeon
processors in its x86 servers, according to sources familiar with the
situation.
Jonathan Schwartz and Paul Otellini, the chief
executives of Sun and Intel, respectively, are expected to share the
stage in San Francisco on Monday to announce a broad partnership
between the two companies.
The first servers from the partnership will begin arriving
soon--in the first half of 2007--and Sun also will sell Xeon-based
workstations, sources said.
In addition, Otellini plans to endorse the x86 version of
Sun's Solaris operating system, elevating it to the mainstream status
enjoyed by Windows and Linux. That means the chipmaker will devote
engineering resources to validate the software and help with hardware
support such as support for chip power management.
In addition, Intel will get rights to sell Solaris,
sources said. Although Intel does have a significant business selling
generic "whitebox" servers and components to business partners, the
company doesn't currently sell operating systems or have plans to do
so.
Intel and Sun representatives declined to comment on their plans.
Banc of America Securities analyst Sumit Dhanda predicted the partnership in a report Friday, and The Wall Street Journal reported on its Web site Sunday that the deal was expected as soon as Monday.
Sun pushed Intel out of its x86 server line in favor of Advanced Micro
Devices' Opteron in early 2005, saying Intel's chips were slower and
more power-hungry, but Intel's new dual-core Xeon 5100 "Woodcrest" and
quad-core Xeon 5300 "Clovertown" processors have restored
competitiveness, and Intel has been recovering some market share lost
to AMD.
The partnership signals "a shift in momentum in favor of
Intel," Banc of America's Dhanda said. "While the impact to Intel
financials is not meaningful in the near term, we think the shift away
from AMD bodes well for momentum in Intel's server business over the
course of the upcoming quarters." Dhanda estimated Intel-based servers
would account for 25 percent to 50 percent of Sun's x86 server sales in
2008.
Sun is expected to continue to sell servers using AMD's Opteron and Sun's own Sparc processors.
The companies are expected to announce the deal at a news conference at
10 a.m. Monday at the St. Regis Hotel in San Francisco, sources said.
Sun's change of heart reflects the competitiveness of the
x86 server market. The Santa Clara, Calif.-based company's move comes
just months after Dell moved the opposite direction, adding AMD to a
previously Intel-only line, and IBM launched its first full-fledged AMD
server line.
After years selling servers using only its own Sparc processors, Sun began its initially lukewarm push into the x86 server market with the Intel-based LX50 systems in 2002. However, Sun's more serious "Galaxy" x86 models relied on AMD's Opteron beginning in 2005.
Sun has never ruled out a return to Intel processors, and there have been indications they were working together. For example, Andy Bechtolsheim, Sun's top x86 server designer, made an appearance at the Intel Developer Forum in September.
Also at the news conference, Intel is expected to endorse Sun's Java
software and its NetBeans programming tools. Solaris, Java and NetBeans
all are open-source software projects.
Read the original article: http://news.zdnet.com/2100-9584_22-6151872.html
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