Sun to Spend $1 Billion on R&D; This Year

Sun Microsystems Inc. said it plans to spend more than $1 billion on research and development this year as it focuses on enhancing its Solaris Unix-based system, storage and Java technology products. Palo Alto-based Sun Microsystems, which makes workstations and large computers called servers that run corporate networks, controls 40% of the Unix workstation market, said George Reyes, Sun vice president and corporate controller. Sun last week eliminated its individual operating companies and reorganized them into business units with a single sales force, to better focus on corporate and consumer markets. The changes were intended to streamline the sales organization so customers could purchase products across Sun’s hardware and software lines through one person, as well as to focus on new markets such as the company’s Java software unit. Sun shares fell 75 cents to close at $39.94 on Nasdaq.