Sun Microsystems have announced a new 12 processor server system, the v1280, which could see off rivals in the mid-range server market. The new system costs around £200,000 (302,000 euros) with the full array of processors, and is also available with 4, 8 and 12 processors with prices from £95,000.
The system uses the 900Mhz UltraSPARC III processor and Sun are hoping to grab the mid-range market from HP, making them the leading UNIX provider in all three ranges (they already have the market share in low and high-end systems). Despite all their success the current market situation is preventing Sun from making a profit, and their competitors have significantly reduced their prices.
According to a marketing group the new prices mean there can be "bidding wars" between the different server markets and they told ZDNet that "For the information technology manager making purchasing decisions -- they can just sit back and goose and goose ... It"s the year of the negotiating tactic".