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Technology Stocks : All About Sun Microsystems

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From: sixty2nds	1/22/2007 12:30:08 PM
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05:44 AMD Sun nears deal to buy Intel chips for servers in likely hit to AMD - WSJ (17.73 ) The Wall Street Journal reports Sun Microsystems (SUNW) and Intel (INTC) appear ready to work together. The companies have been negotiating an agreement under which Sun would buy Intel chips for use in server systems, according to people briefed about Sun's plans. A deal, which could be announced as soon as today, may include an endorsement by Intel of Sun's Solaris operating system, these people said. Sun's use of Intel chips, while not unprecedented, would be a blow to Advanced Micro Devices (AMD), which is now Sun's exclusive source for chips based on the popular x86 design used in most personal computers and servers. It also would be a sign of the renewed competitiveness of Intel's chips, which outsell those of AMD but whose performance levels had fallen behind that of AMD's products until recently. Sun also would keep making computers based on AMD chips, these people said. That dual-supplier strategy is already used by competitors Hewlett-Packard (HPQ), IBM (IBM) and Dell (DELL). Adding Intel-based servers would help Sun match the breadth of those rival offerings.

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