Sun Microsystems will begin to sell servers with Windows Server preinstalled and will open an interoperability laboratory on Microsoft's Redmond, WA, campus. The closer relationship could give Microsoft partners new options for server hardware, as well as give Sun access to a larger sales channel through Microsoft partners.

Sun made its reputation on the back of its high-end SPARC microprocessors, high-performance multiprocessor computer designs, and the Java programming language and virtual machine. The systems are popular for processor-intensive corporate, government, and scientific applications.

For most of its history the company supported Unix and Sun's Unix variants, including the Solaris OS, which runs on both SPARC and x86 computers. The company's former CEO, Scott McNealy, was a vocal critic of Microsoft, but in 2004 he made peace with the company as part of a legal settlement with Microsoft that included a commitment by Sun to improve interoperability of its products with Windows Server. Shortly thereafter, Sun began supporting Windows Server on its hardware and has had some success positioning its servers as Windows servers, even appearing on stage at some Microsoft launch events.

OEM Benefits, Support

Before the end of 2007, Sun will begin to ship Sun Fire x64 servers running the 64-bit edition of Windows Server 2003, and the company will move to 64-bit versions of Windows Server 2008 when that product ships in early 2008.

The decision to become a Microsoft OEM offers some benefits for both companies. Sun simplifies deployment of its systems in Microsoft shops and could benefit from Microsoft's large partner community, particularly among customers looking for high-performance systems for server consolidation and virtualization. Microsoft gains greater visibility in Sun's channel and some incremental Windows Server sales.

The direct impact of the OEM agreement on Microsoft and Sun is likely to be minimal, given that Windows has been available for Sun systems for some time, and the only change is the decision to preinstall the OS on Sun hardware. However, purchasing Sun machines with Windows Server preinstalled will now be more attractive for their customers and partners since, as the OEM, Sun is responsible for supporting Microsoft software that it sells with its computers. This provides more support for customers than if they purchased bare server hardware from Sun and separately purchased Windows Server from Microsoft.

The interoperability laboratory could be important for both companies, with the possibility that Sun's servers could gain a higher profile for high-performance and high-availability solutions.

Sun has already developed a management pack for its Windows servers, enabling those systems to be managed by Microsoft Operations Manager. Executives from the two companies said that future interoperability work would focus on easier deployment of Windows on Sun, virtualization (including Solaris virtual machines running on Windows), and deployments of Microsoft Mediaroom IPTV technology, used by telecommunications providers to offer television over IP networks.

The companies' legal settlement and cooperation agreement was covered in "Sun Deal Signed, Litigation Ends" on page 33 of the May 2004 Update.