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CNET News.com: Sun scoops up Cobalt for $2 billion in stock

Sep 20, 2000, 14:59 (0 Talkback[s])
(Other stories by Cecily Barnes, Stephen Shankland)

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"The deal also means that Sun, at least for the time being, will be incorporating two foreign technologies into its product line: Intel-compatible Advanced Micro Devices CPUs and the Linux operating system. Sun, like AMD, is duking it out with No. 1 chipmaker Intel to win as large a presence as possible in the future computing market."

"We like AMD. The enemy of our enemy is our friend," Jonathan Schwartz, Sun's senior vice president of corporate strategy and planning, said in an interview today. However, in the long term, Sun expects to move Cobalt's products over to Sun's UltraSparc CPUs and its Solaris operating system, Schwartz said."

"This sets the stage for a bigger battle between Sun and all the leading Intel server vendors," Gartner analyst John Enck said. Indeed, it sets the battle directly with Intel as well, which has its own server appliance line called NetStructure."

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