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

“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

“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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