Sun to Merge UltraSPARC with Fujitsu's SPARC64?

Waldmeister writes "The Register has a story from a japanese source, that Sun and Fujitsu are planning to combine their Unix server businesses. Even if Sun doesn't comment on this, they acknowledge that Scott McNealy met Fujitsu's CEO this week. If this will happen, Fujitsu will get the bigger chunk of manufacturing and engineering. With the PrimePower systems outperforming Sun's SunFire systems for some time now, this sounds reasonable, too. And it gives Sun the chance to more resources to extend their Linux and x86 business." There's also a Reuters story.

Comments

This would make a ton of sense

[nelsonal]

SUN's biggest problem is that they employ a ton of chip (second only to Intel) and system designers to design their systems. As I understand it, Fujitsu develops their own chip compatable with the SPARC architecture. The two companies are now competing with Intel who sells 100 million CPUs a year (Xeon doesn't require a whole lot of R&D beyond a regular P4), in a good year they both might sell 5 million CPUs (I'm not positive about fujitsu's unit volumes) so their cost per chip is significantly higher. Combining these efforts should help both companies reduce costs, by spreading lower development costs over more CPUs, and might help them compete with the new IA-32 based competitors.