Intel's Xeon back in the Sun

Sun Microsystems has announced it will resume selling servers with Intel's Xeon processor, restoring a hardware partnership and extending it to software collaboration.

As reported earlier, Sun will begin selling dual-processor Xeon servers in the first half of the year, and Intel will provide engineering resources to optimise Sun's Solaris operating system. With the move, Sun becomes the last of the four tier-one server sellers to rely jointly on x86 processors from Intel and AMD.

Sun chief executive Jonathan Schwartz said at a news conference in San Francisco with Intel chief executive Paul Otellini: "This is a market-changing event. It totally changes the perspective a customer has on how they can do business with Sun and how they can do business with Intel."

Otellini gave a vote of confidence for the x86 version of Solaris chips, which Sun nearly cancelled a few years back. "Solaris is evolving as a mainstream operating system, and it's evolving in terms of the equipment Sun ships," Otellini said. He alluded to the fact Dell, HP and IBM rely on others for their x86 operating systems: "Sun is in the relatively unique position of being the operating system supplier and doing the hardware."

Intel engineers will help ensure Solaris rapidly supports new features in Xeon chips and related Intel technology, including power management and input-output acceleration, the companies said.

The alliance means AMD no longer enjoys its exclusive status as the supplier Sun relies on to power its relatively recent foray into the x86 server market. Sun had stepped away from Xeon in late 2004 but now there's reason to come back, it said. John Fowler, Sun's executive vice president for servers, said: "Woodcrest and Clovertown are substantially improved technology," referring to the dual-core and quad-core Xeon processors geared for dual-processor servers.

AMD professed to be unruffled by its ally's move.

Henri Richard, AMD's chief sales and marketing officer, said in a statement: "AMD believes in competition as a positive force. Sun was among the first to listen to its customers and offer choice through AMD to a long-monopolised x86 server market. As advocates for choice, AMD recognises Sun's desire to provide the same for its customers."

Sun will begin selling dual-processor systems in the first half of 2007, said Fowler. The company said four-processor systems will come out by the end of the year. Sun also plans single-processor systems and workstations using Xeon.

Sun is working on higher-end systems with eight processors, Schwartz said. That "big iron" focus of Sun is one reason Intel was interested in the partnership.

Sun will also sell servers using Intel's "Tigerton" Xeon, quad-core chips due in the third quarter of 2007 and designed for four-processor servers.

Stephen Shankland writes for CNET News.com