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Is Sun subverting Linux from the inside?

Cath Everett ZDNet.co.uk

Published: 01 Feb 2005 10:25 GMT

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Since 2002, the vendor has also hedged its bets by supporting Linux on both Sparc and x86.

But Sun's situation has not been helped by the fact that over the last few years its core customer base in the financial and telecoms sectors has been reining in expenditure and going for cheaper options.

Chris Ingle, group consultant for IDC's systems unit, explains: "Sun traditionally had strong growth, but in a limited customer base -- it's very reliant on telcos and finance. It's not got as diversified a base or product portfolio as rivals such as IBM and the problem is that attempts to diversify into software and services have not resulted in the revenues it needed."

So to try and mitigate the effect of these trends, the vendor is attempting to promote Solaris on x86 as a Linux alternative. "2005 will see Sun going to war with Linux. Although it will continue to sell Linux on its servers too, it recognises that it's a major competitive threat to Solaris," says Butler.

Goguen prefers to pitch it differently, however, saying that the move is not so much about counteracting the Linux threat as supporting a volume business model to increase market share. "It's noise on the fringe that we're taking on Linux and trying to destroy it," he attests.

Instead, the idea is that proliferating Solaris on x86 will generate pull-through sales of other products from an enlarged user base.

"It's not just about volume servers, it's about volume around Solaris. The most successful model for expanding sales is offering a free distribution and services and support around that. Having our technology in the hands of third party developers, both commercial and academic, is better for the health of the OS and the market size of the company," Goguen says.

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