Sun rolls out new servers, workstations

Network computer maker Sun Microsystems Inc. on Sunday rolled out new servers and workstations based on industry-standard components and cut the price for an entry level product.

The new Sun Fire V40z server uses four Advanced Micro Devices Inc. Opteron microprocessors per box, twice the number of its previous Sun Fire servers.

Sun, based in Santa Clara, California, also announced the Sun Java W1100z and Sun Java W2100z workstations, which also use AMD's Opteron processors. All three are available immediately.

Sun, which has faced criticism in recent years for selling only high-end, high-priced servers using proprietary technology, has pushed aggressively to offer cheaper servers in a bid to boost market share that has eroded since the dot-com bust in late 2000.

The company has lost market share and revenue to rival computer companies Dell Inc. and Hewlett-Packard Co. amid the rising popularity of servers using Intel Corp.- compatible processors and the freely available Linux operating system.

"The idea is to grow our unit volume revenue and market share in, frankly, an area we haven't participated in," said John Fowler, executive vice president of Sun's Network Systems Group. "We're combining industry-standard hardware (Intel and AMD chips and other components) with our own software."

In addition to running Linux software from Red Hat Inc. or Novell Inc.'s SuSe unit, Sun's Sun Fire servers also run Sun's version of Unix, called Solaris.

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Sun also cut prices for the entry level Sun Fire V20z. The starting price for the V20z server with 2.2 gigahertz Opteron 248 processors is now $995, down a third.

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The company, which is seeking to change its business model by bundling hardware, software and support over a multi-year contract period, announced a three-year package for the server for $492 a year.

That price bundles a three-year subscription to the Solaris operating system running on Intel-compatible chips, Sun services and support with a choice of either entry-level or premium hardware configurations.

The V20z with one Opteron has a list price of $1,495 and the premium model with two Opteron chips has a list price of $4,995.

Last week, Sun posted a quarterly profit thanks to its landmark $2 billion legal settlement with Microsoft Corp. and revenue rose for the first time in more than three years.