Sun Microsystems on Monday unveiled its first general-purpose computer running the free Linux operating system in what is seen as both a turning point for the company and a potential threat to its traditional products. Known for its million-dollar machines that powered dot-coms during the Internet boom years, Sun aims to grab a piece of the market for cheap, commodity servers, but analysts say it runs the risk of hurting its higher-margin business if it embraces Linux too fully.
Sun"s LX50 computer holds up to two Pentium III microchips from Intel, runs a Sun version of Linux and will start at a price of $2,795.
Sun already uses Linux on low-end special-purpose servers, but those do not have the flexibility to compete with its main product line, analyst have said. The low end is squarely where Sun is positioning its new machine. It argues that Solaris development will pace Linux, so the two can coexist under the umbrella of Sun"s middleware software, which binds networks together and acts as an operating system for the entire network.
Rivals hope Linux will eviscerate Sun"s high-profit business for bigger machines as it becomes more powerful.