Sun Introduces World’s First Metric for Server Efficiency and the Internet of Tomorrow

New Metric to Provide Realistic Assessment of the Space, Wattage and Performance of Datacenter Systems - Including the Breakthrough Sun Fire “CoolThreads” Servers

New York - Dec. 6, 2005 - Sun Network Computing 2005 Q4 (NC05Q4) - Sun Microsystems, Inc. (NASDAQ: SUNW) today introduced a new metric for the next generation of the Internet: the new SWaP (space, wattage and performance) metric that assesses the efficiency and effectiveness of rack-optimized server deployments in a datacenter. According to industry analysts, energy consumption and space utilization are among the biggest cost centers and constraints to growth for IT managers. SWaP is the first industry metric to incorporate these characteristics as considerations in evaluating servers in the datacenter.

As customers attempt to expand their server capacity to deliver numerous web and application services, they are running out of power and space in the datacenter. Sun developed SWaP to measure the effectiveness and impact of its rack-optimized servers in a typical datacenter environment in response to the potential constraints on deploying more racks of servers caused by power and space shortages.

“We’re entering a global energy crisis where companies are forced to consider how high energy costs and real estate will effect their revenue,” said Vernon Turner, group vice president and general manager of enterprise computing, International Data Corporation. “Benchmarking the energy efficiency of IT systems can help customers make better purchasing decisions when considering the trade-off between the need for greater performance and the rising cost of energy and real estate.”

Sun started using SWaP as a design point for its next generation of servers several years ago - the result is the new UltraSPARC(R) T1 processor-based Sun Fire T1000 and T2000 servers with CoolThreads technology. The SWaP analysis concluded the Sun Fire T1000 and T2000 servers far surpass systems from IBM, Dell and HP with up to five times the performance compared to previous generation systems, in some cases using one-fifth the energy and using one-quarter the space, while delivering equivalent or higher levels of performance.

“SWaP is an objective, three-dimensional metric that provides a more comprehensive and realistic way to assess today’s servers, because it evaluates efficiency of the server within the real constraints of space and power consumption,” said Sarang Ghatpande, program manager and research analyst, Ideas International. “Further, SWaP is flexible as it can be readily applied to any datacenter environment using widely available industry standard data points or user-defined equivalent parameters.”

SWaP = Performance/ (Space x Power)

The formula Sun developed, SWaP = performance / (space x power), is a simple calculation that allows any customer to run the metric and use the results to compare systems from different vendors. All of the data used to populate the SWaP metric is publicly available. Space: The space a server occupies can be measured by the rack unit height of the system; information found on a company’s web site. Wattage: Metrics on the server’s power consumption can be obtained using data from actual benchmark runs or vendor site planning guides, recorded in watts. Estimated system power consumption from calculators or datasheets can be also used to assess wattage. Performance: Information about the level of performance or throughput a server maintains can come from any industry-standard or ISV benchmark. Based on the SWaP metric, the Sun Fire T2000 was shown to be 4 times more efficient than IBM’s x346 and 11 times more efficient than HP’s rx4640. Additionally, the Sun Fire T1000 was shown to be four times more efficient than Dell’s PowerEdge SC1425.

First Energy Incentive Program for Enterprise Servers

As a validation of Sun’s commitment to enhancing server efficiency through metrics like SWaP, Sun today also announced that it is in discussions with Pacific Gas and Electric Company (PG&E) to investigate the creation of the industry’s first energy efficiency incentive for enterprise servers. Once an independent audit is completed, the incentive will be available to encourage customers to purchase energy efficient data center products.

PG&E encourages companies such as Sun to innovate with energy efficiency as a top priority. Sun’s new servers will meet that requirement by using one-fifth the energy and one-quarter the space while delivering equivalent or higher levels of performance.

“PG&E is pleased to work with Sun and other businesses to reduce California’s energy demand,” says Greydon Hicks, Manager, Business Energy Efficiency Programs, Pacific Gas & Electric Company. “Sun’s new server will be one more way customers can improve their businesses and reduce their energy use.”

For more information on the SWaP metric, and/or to post comments on SWaP, please go to http://www.sun.com/servers/coolthreads/swap/#how.

For more information related to all of Sun’s NC05Q4 announcements, as well as those above, go to Sun’s online press kit at http://www.sun.com/presskits/networkcomputing05q4/.

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, T1, Sun Fire, CoolThreads 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 trademarks of SPARC International, Inc. in the United States and other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc.

Safe Harbor
This press release contains forward-looking statements regarding Sun’s beliefs and expectations regarding its plans with Pacific Gas and Electric Company. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict and that may cause actual results to differ materially. The following important factors, among others, could cause actual results to differ materially from those expressed in these forward-looking statements: competition with existing or new competitors; failure to rapidly and successfully develop and introduce new products and manage our inventory; and our reliance on single-source suppliers. Please also refer to Sun’s periodic reports that are filed from time to time with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2005 and our Quarterly Report on Form 10-Q for the fiscal quarter ended September 25, 2005. Sun disclaims any obligation and does not undertake to update or revise the forward-looking statements in this press release.

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Alex Plant

Sun Microsystems, Inc.

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