Sun Lowers Prices on UltraSPARC(TM) II Servers

Price Cuts Cover Midrange, High-end Systems



Apr 18, 2001, 01:00 ET from Sun Microsystems, Inc.

    PALO ALTO, Calif., April 18 /PRNewswire/ --
 Sun Microsystems, Inc. (Nasdaq:   SUNW) today said that it is reducing prices on
 its UltraSPARC(TM) II processor-based Sun Enterprise(TM) 3500 to 6500 servers
 by as much as 16 percent. The announcement follows closely the introduction
 and shipping of Sun's new UltraSPARC III processor-based Sun Fire(TM) 3800 to
 6800 midframe servers. The company also announced price reductions for its
 flagship Sun Enterprise 10000 system, also known as Starfire(TM).
     "The introduction of the new Sun Fire servers gives us the perfect
 opportunity to realign prices of our existing product line to eliminate
 overlap with the new Sun Fire servers," said Shahin Khan, vice president of
 product marketing and planning, Sun Microsystems, Inc. "The repricing also
 broadens our price range, which gives more choice for customers and
 potentially greater marketshare for Sun."
     Sun rewrote the rules for midrange systems when it introduced its new Sun
 Fire servers in March. "The new servers brought new levels of availability,
 resource management and performance to midrange systems, representing a
 breakthrough system design," Khan said. "As we continue to innovate new
 technology and drive products to new price points, we can pass on the benefits
 to our customers."
     Prices of the Sun Enterprise 3500 to 6500 servers and Sun Enterprise 3500
 to 6500 server building blocks have been reduced by up to 16 percent. For
 example, the price of a Sun Enterprise 6500 system with 24 processors and
 48 GB of memory drops from $874,000 to $775,000, or an 11.4 percent savings. A
 new Sun Fire 6800 server sells for $1,104,995. In contrast, the list price of
 a similarly configured IBM p680 is over $2 million.
     The price of the Sun Enterprise 10000 server has been reduced by up to
 16 percent for an average 32-processor system, further lowering the Starfire
 system's total cost of ownership compared to mainframes and high-end offerings
 from other vendors. Additionally, the prices of Capacity On Demand (COD) Sun
 Enterprise 10000 systems and Right-to-Use licenses were reduced by up to
 28 percent. Sun's COD program allows customers to purchase a smaller Starfire
 system with additional, unused processors preinstalled, then later upgrade
 their systems instantaneously by purchasing licenses to activate the unused
 processors.
 
     About Sun Microsystems, Inc.
     Since its inception in 1982, a singular vision -- "The Network Is The
 Computer(TM)" -- has propelled Sun Microsystems, Inc., to its position as a
 leading provider of industrial-strength hardware, software and services that
 power the Internet and allow companies worldwide to take their businesses to
 the nth. With $19.2 billion in annual revenues, Sun can be found in more than
 170 countries and on the World Wide Web at http://sun.com .
     NOTE:  Sun, Sun Microsystems, the Sun logo, Starfire, Sun Enterprise, Sun
 Fire, and The Network Is The Computer are trademarks or registered trademarks
 of Sun Microsystems, Inc. in the United States and other countries.
     All SPARC trademarks are used under license and are trademarks or
 registered trademarks of SPARC International, Inc. in the United States and
 other countries. Products bearing SPARC trademarks are based upon an
 architecture developed by Sun Microsystems, Inc.
 
     CONTACT:  Laura Schmidt of Sun Microsystems, Inc., 650-786-4097, or
 laura.schmidt@sun.com.
 
 

SOURCE Sun Microsystems, Inc.
    PALO ALTO, Calif., April 18 /PRNewswire/ --
 Sun Microsystems, Inc. (Nasdaq:   SUNW) today said that it is reducing prices on
 its UltraSPARC(TM) II processor-based Sun Enterprise(TM) 3500 to 6500 servers
 by as much as 16 percent. The announcement follows closely the introduction
 and shipping of Sun's new UltraSPARC III processor-based Sun Fire(TM) 3800 to
 6800 midframe servers. The company also announced price reductions for its
 flagship Sun Enterprise 10000 system, also known as Starfire(TM).
     "The introduction of the new Sun Fire servers gives us the perfect
 opportunity to realign prices of our existing product line to eliminate
 overlap with the new Sun Fire servers," said Shahin Khan, vice president of
 product marketing and planning, Sun Microsystems, Inc. "The repricing also
 broadens our price range, which gives more choice for customers and
 potentially greater marketshare for Sun."
     Sun rewrote the rules for midrange systems when it introduced its new Sun
 Fire servers in March. "The new servers brought new levels of availability,
 resource management and performance to midrange systems, representing a
 breakthrough system design," Khan said. "As we continue to innovate new
 technology and drive products to new price points, we can pass on the benefits
 to our customers."
     Prices of the Sun Enterprise 3500 to 6500 servers and Sun Enterprise 3500
 to 6500 server building blocks have been reduced by up to 16 percent. For
 example, the price of a Sun Enterprise 6500 system with 24 processors and
 48 GB of memory drops from $874,000 to $775,000, or an 11.4 percent savings. A
 new Sun Fire 6800 server sells for $1,104,995. In contrast, the list price of
 a similarly configured IBM p680 is over $2 million.
     The price of the Sun Enterprise 10000 server has been reduced by up to
 16 percent for an average 32-processor system, further lowering the Starfire
 system's total cost of ownership compared to mainframes and high-end offerings
 from other vendors. Additionally, the prices of Capacity On Demand (COD) Sun
 Enterprise 10000 systems and Right-to-Use licenses were reduced by up to
 28 percent. Sun's COD program allows customers to purchase a smaller Starfire
 system with additional, unused processors preinstalled, then later upgrade
 their systems instantaneously by purchasing licenses to activate the unused
 processors.
 
     About Sun Microsystems, Inc.
     Since its inception in 1982, a singular vision -- "The Network Is The
 Computer(TM)" -- has propelled Sun Microsystems, Inc., to its position as a
 leading provider of industrial-strength hardware, software and services that
 power the Internet and allow companies worldwide to take their businesses to
 the nth. With $19.2 billion in annual revenues, Sun can be found in more than
 170 countries and on the World Wide Web at http://sun.com .
     NOTE:  Sun, Sun Microsystems, the Sun logo, Starfire, Sun Enterprise, Sun
 Fire, and The Network Is The Computer are trademarks or registered trademarks
 of Sun Microsystems, Inc. in the United States and other countries.
     All SPARC trademarks are used under license and are trademarks or
 registered trademarks of SPARC International, Inc. in the United States and
 other countries. Products bearing SPARC trademarks are based upon an
 architecture developed by Sun Microsystems, Inc.
 
     CONTACT:  Laura Schmidt of Sun Microsystems, Inc., 650-786-4097, or
 laura.schmidt@sun.com.
 
 SOURCE  Sun Microsystems, Inc.