Sun Microsystems Rolls Out 2 New Servers

Sun Microsystems Inc. today will start selling two new models of its inexpensive server computers that dish up Internet pages, as the company tries to expand its business outside high-end machines.

The Sun Fire V880 and Netra 20 will use Sun’s new UltraSparc III chips. The V880 is an entry-level system that the company says costs 46% less than competing products and can tackle the work of three of those other machines. The Netra 20 is an updated version of the company’s thin, rack-mounted server.

Palo Alto-based Sun, best known for multimillion-dollar servers that run large corporate databases, is building sales of cheaper machines that are popular in data centers that manage Web sites for other companies.

These customers have seen sales wither this year and are looking to cut costs by replacing big sets of servers that use Intel Corp. chips and Microsoft Corp. software--a combination known as “Wintel”--with fewer, more powerful models, Sun said.

The V880 costs $29,995 for a server with two processors or $119,995 for an eight-chip setup. The Netra 20, aimed at communications and military applications, has one chip and sells for as little as $11,495.

Sun shares rose 41 cents to $10.40 on Friday on Nasdaq and have gained 23% in the last month.