Sun Welcomes Intel Back In

Intel had made processors for Sun in the past, but they moved to AMD processors because they felt that the Intel chips consumed too much energy. To be able to get back in with Sun is seen as a big move, because they had been AMD only, and should help Intel in 2007 and could possible persuade others to purchase Sun hardware, a win for both.

Sun Microsystems Inc. will begin building a line of servers based on chips from Intel Corp. and will receive Intel’s endorsement of Sun’s Solaris operating system, executives from both companies said Monday.

The long-term technology development alliance, announced by Sun Chief Executive Officer Jonathan Schwartz and Intel CEO Paul Otellini, was seen as a sizable victory for both companies as they fend off threats from competitors in the high-margin server market. Source: Yahoo

They will begin shipping the new servers in the first half of 2007. Both companies have steadily lost money since the FIRST dotcom crash and are hoping they can turn things around before the second crash comes later next year. (You read it here first.)