Sun Micro to launch new high-end server

PALO ALTO: Network computer maker Sun Microsystems Inc. will launch a new
high-end server with its UltraSPARC III microchip on Sept 26, the company said
on Friday. Sun's COO, Ed Zander, will unveil the new machine for reporters and
analysts in New York on that date, the company said.

That puts Sun on the calendar slightly before competitor International
Business Machines Corp., which is due to launch its next generation UNIX-based
server, known as Regatta, in the fourth quarter.

Sun's new server will fill out a line of products based on the new chip. Sun
had some difficulty meeting timing expectations with the roll-out of lower end
UltraSPARC III products but has kept on track with the chip products after the
early delay.

Sun is expected to continue to sell the E 10,000 its previous high-end
platform and others in the UltraSPARC II line since many customers will not make
an immediate transition. IBM's Regatta server also will be based on its new
Power4 chip, which follows the Power3 processor that runs its current high-end
UNIX server.

IBM has also been pushing the Linux operating system, but Shahin Khan, Sun's
chief competitive officer, said Sun's Unix-based operating system, Solaris, and
new chips let it make the best large-scale systems.