*NEWS*SUN CHIEF ATTACKS & INSULTS HP&DELL

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Date: Friday June 17, 2005 10:56:00 am
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    Sun Chief Launches New Attack on Rival
    SCOTT McNealy, outspoken chairman and chief executive of Sun Microsystems, yesterday used his sales pitch at the US giant’s annual conference at Turnberry to heap further insults on his rivals.

    McNealy, whose business includes the 600-worker Linlithgow operation in West Lothian, has a long-standing reputation of blasting his competitors with acerbic remarks, and has previously described the merger between Compaq and HP as “two garbage trucks crashing into each other”.

    McNealy used his speech before a gathering of Sun executives and customers to lay into his old nemesis Microsoft, as well as IBM, Dell and HewlettPackard, which he described disparagingly as “that ink cartridge company” which “fundamentally wound up its storage business” – taking direct aim at HP’s server and storage operations.

    He added: “Dell is not even a computer company anymore.

    They even took the word ‘computer’ out their name. All they make nowadays are boxes.”

    McNealy went on to promote Sun as the only viable alternative to IBM, whose business practices he described as a trap and whose “goal is to get you into a global services contract. Then they’ve got you.”

    Nonetheless, Sun continues to face fierce competition for its servers. IBM and HP compete with Sun at the top-end, while Dell, and others, sell low-end servers based on Intel chips and Microsoft’s Windows or the Linux operating system, cheaper than Sun’s machines.

    Sun, which last week announced that it would buy global storage tape device company Storage Technology for dollar-4.1bn – its largest acquisition – yesterday also launched its environmentally friendly sustainable computer strategy.

    The strategy, which combines the recycling of materials with its own products which generally consume less power, is part of the 12- company Sustainable Technology Foundation to be launched next month at Gleneagles prior to the G8 summit.

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