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Sun Microsystems shine on AppIQ ; Computer company hopes to expand market, increase sales with new software

Posted on: Tuesday, 24 February 2004, 06:00 CST

Sun Microsystems Inc., whose server computers run networks and Web sites, will license software from AppIQ Inc. and work with the company on programs to let clients automate management of their storage gear to keep costs down.

AppIQ's software can be set up in a few hours to locate data on different machines automatically and evaluate usage patterns, AppIQ Vice President Tom Rose said. Products from the deal will debut in the second half, said Derek Maxwell, who runs Sun's storage- management software group.

Sun gets an estimated $2 billion in annual revenue from its storage business and wants to boost sales by adding programs that help companies manage more data without spending more money on personnel. Santa Clara-based Sun will sell closely held AppIQ's programs and also will integrate the software into Sun server and storage computers, Maxwell said.

"It's a really big deal from Sun's standpoint in bringing a product that a lot of their customers really need," said Randy Kerns, senior partner at storage researcher Evaluator Group in Greenwood Village, Colo. "When they do roll out their solutions, Sun will have a very powerful offering."

Sun shares fell 16 cents to $5.24 at 4:30 p.m. New York time in Nasdaq Stock Market composite trading.

They have risen 17 percent this year.

Sun's current management software only works with its own servers and storage, and the partnership will expand the market the company may capture, Kerns said.

Sun machines made up 5.2 percent of worldwide storage sales in the third quarter and 11 percent of server sales, according to researcher IDC.

The deal puts Sun in competition with companies such as EMC Corp., Fujitsu Siemens Computers Holding BV and CreekPath Systems, Kerns said.

AppIQ software is based on Sun's Java programming language.

Its StorageAuthority set of programs automatically search a company's databases, storage switches, servers and storage computers and notify the user of the products there are and how they work together. They also track what kind of data is being stored and how often it is accessed.

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