HP increases Solaris push to Linux

Hewlett-Packard has fired another round at Sun Microsystems, announcing free Linux migration services for Solaris customers in the US.

HP said it would offer assessment, application porting and migration services with an estimated value is US $25,000.

The migration deal, which is available to December 31, 2003, covers assessment of porting and migration needs for up to three applications, and porting of one application at no charge. The deal also provides use of an HP ProLiant server for up to 30 days for testing and a free HP StorageWorks SAN assessment to determine storage utilization.

At press-time, it was unknown if the deal was also available to Australian Solaris users.

"It's a good business decision for HP," said Douglass Hock, president of US-based Ideal Technology. "They should have done this a long time ago."

The HP offer follows an open letter that Merrill Lynch analysts issued to Sun Chairman and CEO Scott McNealy, urging him to drastically cut costs and alter course or face extinction.

"Sun faces a crisis," the report stated. "On its current course, we believe Sun is likely to suffer further share and financial losses, become irrelevant to most users, and eventually be acquired for its installed base."

The report, dated October 2, urged McNealy to make large cost cuts immediately, slash staff numbers by 5,000 to 7,000, and establish a narrow focus on mission-critical computing, where its advanced Unix operating system, systems architecture and management can add value to data centres. The financial analysts advised Sun to de-emphasise and retire SPARC development, get rid of the Mad Hatter desktop plan just announced, bring in a COO and spin off Java.

"Java has been a technology success, a so-so branding effort and a financial failure," according to the report by analysts including John Roy, Richard Farmer and first vice-president of Merrill Lynch Steven Milunovich. "Sun deserves to be a proud father, but Java now belongs to the masses. IBM likely invests more in Java than Sun does."

The report said Sun should target its Solaris Unix operating system blade architecture and N1 systems management and services at the mission-critical market.

The analysts also said Sun should keep investing in the Enterprise Java middleware formerly code-named Orion, but team with BEA Systems for market acceptance.

"Sun is an innovator, but even IBM became selective about its R&D efforts when the red ink flowed," the report added. "Solaris, Linux, Orion, Mad Hatter, N1, SPARC, x86, storage and Java. The 'Network Is The Computer' tent is bursting at the seams."

The report, released just days after Sun said it would take a US$1.05 billion charge during its fourth fiscal quarter, also told Sun to get its partnering act together.

"Although we think Sun's channel emphasis remains, VARs that have been tied only to Sun are now questioning their commitment and thinking about backup strategies," according to the report. "Sending clear messages now would help cement these relationships."

The note was also critical of McNealy's management style. "Scott's brash and contrarian personality have been synonymous with the company's image and success. Unfortunately, the act is getting old," the report stated. "Sun does need to make contrarian bets but must do so in ways palatable to conservative CIOs."