Low-end Sun server aimed at Intel
Published: 29 Oct 2001 11:52 GMT
Sun Microsystems will debut a new eight-processor server today (Monday) as part of its successful effort so far to keep Microsoft and Intel from extending their dominance in the desktop market into higher-end systems.
The server seller will begin selling its UltraSparc III-based V880, which has been code-named "Daktari," an important upgrade to the popular E450 that will help spur adoption of the new chip and its accompanying operating system, Solaris 8.
"We view the Wintel (Windows servers running on Intel chips) and Lintel (Linux-Intel) environment as ours to go get," said Neil Knox, general manager of Sun's volume systems group. "Buy a few V880s and kick out a boatload of Wintel servers," he said, reiterating the company's position that a Sun server can be used to replace several lesser machines, lowering management costs for customers.
A V880 with two processors will cost about $29,000, but most buyers are likely to favour a four-processor model for about $49,000, Knox said. Current customers include Texas Instruments, which is using the systems to control manufacturing lines in its factories, and Xerox, which is using it to handle print jobs.
Sun has a tough job before it, though. Intel can afford to sell CPUs more cheaply because it makes so many. In combination with Microsoft, Intel also can rely on sales forces from Dell, Compaq, Hewlett-Packard IBM and others to bid against each other to keep prices down.
Sun, the top Unix server seller, may be going after Wintel, but it has Unix server makers to contend with as well. IBM recently introduced a new low-end two-processor pSeries 610 Unix server. Hewlett-Packard will refresh its four-processor L-class systems with the new PA-RISC 8700 chip near the end of the year and sees Sun as vulnerable.
In a research note on Thursday, Salomon Smith Barney analyst John Jones said several lower-end UltraSparc III servers are in the works at Sun. Currently, six of seven models use the older UltraSparc II chip, but the upgrade, along with the new top-end Starcat server, could improve profit margins.
Jones predicted that information technology spending would pick up in mid-2002, roughly the same time as revenue from UltraSparc III systems are expected to surpass those from UltraSparc II systems.
Also on Monday, Sun will introduce the Netra 20, a rack-mountable two-processor system 7 inches thick that meets telecommunications industry requirements for tolerance to heat, cold, smoke and DC power. The Netra 20 costs between $11,000 and $20,000, Knox said.
Now is not the greatest time to court telecommunications customers, Knox acknowledged. "Telecoms are going through a dramatic downturn in their business, but they're going to come back," he said. Telecommunications customers typically buy numerous systems for jobs such as voice mail or wireless phone connections.
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