Feeds

Sun buys Linux server appliance specialist Cobalt for $2bn

'Our bet for the future' - so this is important, right?

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Sun is to buy server appliance specialist Cobalt Networks in a stock swap worth approximately $2 billion. Cobalt's roots are in Linux/MIPS small server appliances for small offices and Web sites, and as one of its products is the Qube, presumably rights to rattle lawyers at Apple and Mr Jobs will come with the acquisition.

The serious point of the deal from Sun's point of view, however, is that Cobalt's target market and Linux base is an extremely good fit. Sun doesn't have a great deal of trouble at the top end of the server market, but is still trying to figure out ways to deal with Linux and the lower end.

According to Sun president and CEO Ed Zander Sun is buying Cobalt "to establish ourselves in low-end server appliances and immediately jump into the marketplace with a proven, world-class product offering... We think the demand for these high-volume, turnkey devices will explode in the next couple of years. Cobalt is our bet for the future."

Which is quite a serious ambition to have for small but perfectly-formed Cobalt. Cobalt is to become Sun's server appliance business unit, within the Network Service Provider organisation. ®

Related stories:
Cobalt drops MIPS for x86
Gateway opts for MIPS-Linux for Web server offering - and whatever happened to that deal?

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.