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Sun Gains Server Market Share for Third Consecutive Quarter in Analyst Report


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Solaris 10 Coupled With Innovative SPARC and x64 Servers Drive Sun’s 15.8 Percent Year-to-Year Revenue Growth

SANTA CLARA, Calif. November 22, 2006 Sun Microsystems, Inc. (NASDAQ: SUNW) saw its year-to-year total server market share grow 1.1 points, the most of any top six server vendor, according to the IDC Worldwide Quarterly Server Tracker, which was released today. It was the third consecutive quarter that Sun’s market share grew.

Sun’s saw its year-to-year total server revenue grow at 15.8%, more than double the growth of its closest competitor.

Sun’s growth was driven by the success of its Sun Fire servers, both UltraSPARC and x64, and by customers continuing to embrace the Solaris 10 operating system. The company won new customers in high performance computing and web tier deployments, as well as securing traditional ERP, CRM, data warehousing and database deployments.

Sun outperformed its competitors in key areas:

* Sun’s market share grew while HP lost 1.5 points in the overall factory revenue server market share.
* In the Unix segment, Sun grew factory revenue market share by 3.6 points while HP lost 5 points of share.
* Also noteworthy was IBM losing .2 points of unit market share in the overall server market.

“We’re outgrowing the competition because we have the industry’s best, most complete server line-up and no one comes close to matching Solaris 10,” said John Fowler, executive vice president, Sun’s systems group. “The way we’ll continue to grow is simple: focus on working with customers for whom network computing is a vital competitive differentiator, and deliver innovative products that give them an edge in the marketplace.”
About Sun Microsystems, Inc.

A singular vision -- “The Network Is The Computer” -- guides Sun in the development of technologies that power the world’s most important markets. Sun’s philosophy of sharing innovation and building communities is at the forefront of the next wave of computing: the Participation Age. Sun can be found in more than 100 countries and on the Web at http://sun.com.

Sun, Sun Microsystems, the Sun logo, Sun Fire, Solaris, UltraSPARC, Sun Network and The Network is the Computer are trademarks or registered trademarks of Sun Microsystems Inc. in the United States and other countries.

All SPARC trademarks are used under license and are trademarks or registered.

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