Sun Micro tests new waters with Linux computer

SAN FRANCISCO: Sun Microsystems Inc. on Monday unveiled its first general-purpose computer running the free Linux operating system in what is seen as both a turning point for the company and a potential threat to its traditional products. Known for its million-dollar machines that powered dot-coms during the Internet boom years, Sun aims to grab a piece of the market for cheap, commodity servers, but analysts say it runs the risk of hurting its higher-margin business if it embraces Linux too fully.

Sun's LX50 computer holds up to two Pentium III microchips from Intel Corp., runs a Sun version of Linux and will start at a price of $2,795. Sun already uses Linux on low-end special-purpose servers, but those do not have the flexibility to compete with its main product line, analysts have said. Linux is a cooperatively developed operating system and part of the Unix family like Sun's Solaris operating system. Solaris is engineered for security, reliability and to run on high-end machines, which Linux is not yet able to do well, analysts said.

Even so, corporations are increasingly turning to low-end machines running on Linux, especially for relatively simple jobs like managing printing and Internet connections. Many customers also see the fact that any single vendor does not control Linux, as a plus. The low end is squarely where Sun is positioning its new machine. It argues that Solaris development will pace Linux, so the two can coexist under the umbrella of Sun's middleware software, which binds networks together and acts as an operating system for the entire network.

Rivals hope Linux will eviscerate Sun's high-profit business for bigger machines as it becomes more powerful. Sun's software efforts have languished in the past, overshadowed by its powerful computers, but the company recently has brought middleware to center stage and said the new machine is part of that strategy. "Where we're adding value, and where the other guys don't necessarily get, is we are adding in manageability," said Peder Ulander, director of marketing for Sun's Cobalt Business Team, which includes the Linux system.

Sun also announced it would resume development of its own Solaris operating system for Intel chips. The new commodity machine will run Solaris as well as Linux, and executives said they would move version 9, the latest, to the Intel chips within two quarters.

© Reuters