Sun, Silicon Graphics Plan Links With Intel, Microsoft

Two leaders in the world of high-performance computing are revamping their strategies to use the strength of either chip kingpin Intel or software giant Microsoft to expand their businesses.

Sun Microsystems Inc. said Tuesday it would make its key operating system software, a version of Unix called “Solaris,” run on future generations of Intel Corp.’s computer chips. The chips, called “Merced,” are not expected to be widely available until 1999. In the past, Sun has not made it a priority to get Solaris to run on Intel chips.

Today, Silicon Graphics Inc. is expected to announce a partnership with Microsoft Corp., aimed at making Silicon Graphics’ specialty graphics software run on Microsoft’s advanced operating system, Windows NT.

The announcements signal a subtle but critical shift in business strategy for the companies. Both Sun and Silicon Graphics have built their business around building powerful computer “workstations,” machines traditionally used by engineers to handle computing tasks beyond the capabilities of personal computers. To do so, both companies have designed their own chips, operating systems and other software applications.

Although neither firm says it is giving up producing its own chips and software, analysts long have predicted that they would face growing pressure as the chips and operating system software in PCs become more powerful.

“We’re seeing the continuation of the consolidation that started at the PC end,” said Rob Enderle, an analyst with Giga Information Group, a Santa Clara market research firm. By partnering with Intel, Sun hopes to get a leg up in its competition against Microsoft’s operating system. Similarly, by teaming up with Microsoft, Silicon Graphics hopes to push its advantage in graphics and not have to spend as much time building all the technology supporting the graphics.