Headline Feeds
Sun Microsystems (Nasdaq: JAVA) this week unveiled new pricing for its grid computing, storage, developer and desktop services, as well as for its Java Enterprise System (JES). The move is viewed as an attempt to adjust how enterprises pay for IT resources.
At its analyst summit in Santa Clara, California, Sun said that it would deliver IT resources through a utility selling model in which corporate customers could purchase computing power for US$1 per hour of central processing unit (CPU) use and storage for $1 per gigabyte. The company indicated it would be expanding its Sun Grid program in the U.S. and Europe, with more data centers on the way.
As for JES, Sun announced the release of "initial suites," which break down the JES components -- identity management, application platform services, system availability, Web infrastructure and enterprise communications -- into individual parts that can be purchased a la carte by companies. Each of the suites is available by subscription for $50 per employee per year, Sun said.
IT as Utility
The announcements were somewhat of a departure from previous product releases in that they were really an adjustment in pricing. However, the company did win praise for adapting to market factors.
"It's just packaging," Yankee Group senior analyst Dana Gardner told TechNewsWorld. "It's reading the market and trying to adjust to it."
Sun said its aim was to simplify the process and price of selecting, acquiring and using IT infrastructure, allowing companies to use and pay for only what they need, when they need it.
"Today Sun has taken the next big step in offering IT as a utility and is the first vendor to truly deliver on the promise of an open, standardized grid," said a statement from Sun Chairman and Chief Executive Officer Scott McNealy. "As the IT industry continues to evolve, customers will need to move away from building data centers in a one-off customized model toward a standardized model and eventually to a utility model."
Sun also indicated that its partnership with Advanced Micro Devices (NYSE: AMD) (AMD) and dual-core versions of that company's Opteron processors, combined with the latest update to Sun's Solaris 10 operating system, would enable more powerful solutions for its customers.
Digitally Digestible
Yankee Group's Gardner said Sun's grid announcement was the proper response to current trends in enterprise computing.
"In the long run, companies will be looking to outsource more of their assets in IT," Gardner said. "Sun is priming the pump to get this business going."
Gardner said the JES suites announced by Sun were aimed at corporations that could not afford the all-or-nothing scenario that was previously offered.
"By breaking it into suites, it is designed to be more digestible for organizations," he said.
Gardner added that while Sun rival IBM (NYSE: IBM) is taking a
different approach that centers more on its
professional services, Sun might find success 
in
delivering its solutions to the midsize enterprise sector.
Zero Management
Gartner (NYSE: IT) research Vice President Martin Reynolds praised the utility computing offering from Sun, telling TechNewsWorld that it will appeal to companies looking to alleviate IT complexity.
"What I like is the zero-management aspect of the grid," Reynolds said. "That means companies can spend that dollar real quick."
On the downside, Reynolds said, it is unclear exactly which companies would use the utility model, since large pharmaceutical, financial and other firms likely already have their own grids.
Nevertheless, the analyst -- who also approved of
the segmented JES offerings -- said Sun's move might
bring grid capabilities to a wider audience.
Talkback: 
